BAA sells airport hotels to Arora

Hotel News - 03/04/2008

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Arora, a company specializing in airport hotels, has announced that it will be buying a selection of properties from British Airports Authority (BAA) for a total of £265 million.

Arora’s owner, Surinder Arora, worked for British Airways at the age of 13, shortly after arriving in the UK, and is now in the position to buy commercial properties from the nation’s largest airport operator.

Arora has already purchased properties from BAA. In 2006, the company purchased nine airport hotels from BAA for £300 million.

The hotel group’s newest project is a new hotel under construction at Heathrow Terminal 5.

BAA holds a number of properties in its £1.1 billion portfolio but with the downturn of the financial markets, it has had trouble finding buyers. The airport operator owns a total of 58 airport properties together with the Morely Fund Management, the majority of them are located at Heathrow Airport. Of BAA’s total holdings, Arora will be purchasing 33 properties.

BAA is still looking for buyers for the rest of its property portfolio. The airport manager has already sold off its World Duty Free shops. The shops were purchased by Autogrill, an Italian company, for the sum of £546 million.

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