Le Méridien room boom begins

An £88m renovation of London's Grosvenor House hotel will begin next month, kicking off a four-year plan by Le Méridien to increase its number of guestrooms worldwide by 19%.

The group's expansion programme will see guestroom capacity at the Grosvenor House increase by 50%, from 587 to 882, and banqueting capacity rise to 3,600, turning the hotel's Great Room into Europe's biggest ballroom.

Globally, Le Méridien's guestroom portfolio will increase from 37,208 to 45,398.

Chief executive Juergen Bartels said the worldwide economic slowdown and the aftermath of last year's 11 September attacks continued to have a serious effect on business.

"History has clearly shown us that we are a cyclical business, although I do not feel we can expect an upturn until at least the first or second quarter of 2004," Bartels said.

• Interview with Juergen Bartels, page 32.