LONDON, May 9 (Reuters) - Ares Real Estate, and partner

EQ Group, have acquired an 18-strong portfolio of UK hotels from

Land Securities ( LSGOF ) at a headline purchase price of 400

million pounds ($499 million), in a sign of greater confidence

in Britain's property and leisure market.

Ares said the portfolio consisted of mid-scale and economy

properties located in central London and major UK city centres.

Under terms of the deal, Ares secured a lease surrender from

current hotel operator Accorinvest, who will transfer operations

of the hotels to Ares.

"The hotels are well located with an attractive weighting to

the London market and have seen performance recover strongly

since Covid," said John Ruane, Partner and Co-Head

of Ares European Real Estate.

"The rationalisation of the ownership and lease structure

offer us exciting opportunities to add value over time."

Ares Real Estate has $48.8 billion of assets under

management.

($1 = 0.8013 pounds)