The hotels are predominantly located in established city centerlocations across the UK, with a weighting towards London, accordingto Land Securities. As part of the deal, Accord will operate thehotels under 12-year variable leases and the new owner will invest68.67 million (euro 53 million) to upgrade the properties.


The leases are renewable six times, for a total of 84 years. Theassociated rents will be based on an average 21% of annual revenueswith no guaranteed minimum. The variable rent for 2006 would haveamounted to $53.12 million (euro 41 million).


Land Securities is a FTSE 100 company with a market value ofmore than $19.44 billion (euro 15 billion). The company ownsproperty assets in England, Scotland and Northern Ireland.


Accor operates 4,000 hotels in nearly 100 countries with 160,000employees. The sale will enable Accor to reduce its adjusted netdebt by $756.87 million (euro 584 million). Accor's financialadvisers were NM Rothschild & Sons; its legal and tax adviserwas CMS Cameron Mc Kenna.

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