Accor's lease rate for each of the properties is based on anaverage 18% of annual revenues with no guaranteed minimum. Theleases are renewable six times, for a total of 84 years. Based on2006 revenues, variable rent would have amounted to 49.5 millioneuros. Moor Park will be responsible for insurance costs, propertytaxes and structural maintenance, which totaled 1.8 million eurosin 2006.

Accor operates in 100 countries. In the transaction, Moor Parkis gaining 72 hotels in Germany and 19 in the Netherlands. Thehotels carry the Novotel, Mercure, Ibis and Etap brands and totalapproximately 12,000 rooms.

Accor, which is selling its real estate but retaining managementin order to reduce earnings volatility, says it will use theproceeds to cut its net debt by 612 million euros (US$807.2million). Previously, Accor has sold and leased back hotels inFrance, Belgium and the UK.