Terminal 5 hotel deal signed

Arora International hotels has singed a £65m deal with the British Airports Authority (BAA) to purchase Heathrow's only hotel at the forthcoming Terminal 5.

The 600-room property will operate as Accor Sofitel and will be directly linked with Terminal 5.

It should be completed in time for the opening of the new multi-million pound terminal in March 2008.

Surinda Arora, chairman of Arora International hotels, said: "Our focus will now be on working with BAA and other partners to deliver this landmark five-star Sofitel in time for the opening of Terminal 5."

Margaret Ewing, chief financial officer of BAA, who has spent more than a year on the deal, 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."

The deal is due to complete when the construction of the hotel begins in March 2006.

By Emily Manson

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