BAA sells Terminal 5 hotel lease to Arora

Hotel News - 12/10/2005

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Airport giant BAA has announced that has agreed to sell the ground lease of the Terminal 5 airport hotel at Heathrow Airport.

BAA has agreed a price of £65 million for the sale of the lease to Arora International Hotels and the transaction is due to be completed by the time construction of the hotel starts in March 2006.

The airport hotel is slated for completion at the same time as the new Heathrow Airport terminal in March 2008 and Arora now has a 999 year superior leasehold interest on the site.

The new hotel will operate under the Sofitel brand and will be linked directly to Terminal 5. With 600 rooms, the five-star hotel will provide luxury accommodation for travellers flying in and out of Heathrow Airport.

Margaret Ewing, BAA chief financial officer, said: 'This sale brings to a successful conclusion our overall strategy for the project. Our first task was to select the right operator and we are delighted with the Arora/Sofitel combination.'

She added: 'We have now agreed terms for the disposal of the resulting investment, as planned, to deliver significant value for BAA shareholders. However, our involvement with the project does not end here and we look forward to working with Arora to deliver a truly world class hotel in time for the opening of Terminal 5.'

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