Barcelo Takes Over Management of Paramount Hotels

24th August 2007 (Last Updated August 24th, 2007 10:45)

UK company Dawnay Shore Hotels (DSH) is to lease its Paramount Hotel chain to Spanish company Barcelo. DSH owns and operates a chain of 20 four and five-star hotels in the UK. Under the terms of the 45-year leasing agreement, Barcelo will takeover management of the chain.

UK company Dawnay Shore Hotels (DSH) is to lease its Paramount Hotel chain to Spanish company Barcelo.

DSH owns and operates a chain of 20 four and five-star hotels in the UK.

Under the terms of the 45-year leasing agreement, Barcelo will takeover management of the chain.

Barcelo will pay £28m for the first year of the lease, rising to £31m-34m, depending on the performance of the chain, in four year’s time.

After five years, the lease will be linked to inflation and profitability.

DSH says the arrangement will provide a steady income, allowing it to further add to its property portfolio.

Barcelo manages and operates over 130 hotels in 14 countries.