Agreement for Lease Signed by Puma Hotels plc

HOTEL CORPORATION PLC

Puma Hotels plc - Agreement for Lease Signed

The Board of The Hotel Corporation plc, whose principal asset is a 49.9% stake in Puma Hotels plc ("Puma Hotels"), announces that it has been informed by Puma Hotels that Paramount Hotels Limited, a subsidiary of Puma Hotels, has entered into an agreement with Premier Inn Hotels Limited and Whitbread Group plc, to develop a 107 bedroom Premier Inn Hotel in Harrogate.

A copy of today's press release made by Puma Hotels is reproduced below:

Paramount Hotels Limited, a subsidiary of Puma Hotels plc, has entered into an agreement with Premier Inn Hotels Limited and Whitbread Group Plc, to develop a 107 bedroom Premier Inn Hotel in Harrogate ("the Hotel").

Upon completion, the Hotel will be leased for 25 years on a full repairing and insuring basis to Premier Inn and Whitbread. Premier Inn is the largest and fastest-growing hotel brand in the UK, with 600 Premier Inn hotels comprising more than 44,000 rooms.

Planning consent for the Hotel has been already granted by Harrogate Borough Council and will be directly linked into a new 3,400sqm exhibition facility which is currently being built.

Howard Shore, Chairman of Puma Hotels plc, commented: "We are delighted to have entered into this agreement which will enable us to work with Whitbread and its award winning Premier Inn Hotels."

Enquiries:

Shore Capital and Corporate Limited - Nominated adviser

Andrew Raca Tel: 020 7408 4090

Toby Gibbs

The Hotel Corporation plc Tel: 01624 626 586

Barclay Douglas