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Alrov Properties and Lodgings Acquiring the Luxury
 Paris Hotel - The Lutetia for €145 million ($188 million)

By Koby Yeshayahou, Globes, Tel Aviv, IsraelMcClatchy-Tribune Regional News

May 4, 2010 --Alrov Properties and Lodgings Ltd. (TASE: ALRPR), controlled by chairman Alfred Akirov, signed an options agreement to acquire the 100-year old luxury Hotel Lutetia at 45 boulevard Raspail in Paris's fashionable St. Germaine quarter for Euro 145 million. The deal was made through a unit of subsidiary Locka Holding BV, in which Alrov Properties owns an 80 percent stake. The company first reported on the talks to buy the property in December 2009.

The Lutetia is one of six palaces in Paris used as hotels, and the only one on the Left Bank. The hotel has 231 rooms and suites, banquet halls, a business center, restaurants, and a spa.

In previous announcements on the purchase negotiations, Alrov refrained from identifying the property and the options agreements, in order to prevent a collapse of the talks, and to enable the seller to meet its regulatory obligations toward the hotel's employees.

Alrov Properties' share price rose 1.6 percent by midday today to NIS 63,

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Copyright (c) 2010, Globes, Tel Aviv, Israel

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