Hard Rock Hotel Joint Venture

Rank Group PLC
18 June 2003

18 JUNE 2003

THE RANK GROUP PLC

HARD ROCK HOTEL JOINT VENTURE WITH SOL MELIA



The Rank Group ('Rank' or the 'Group') is pleased to announce that it has agreed
to form a 50:50 joint venture between Hard Rock Hotels and Resorts ('HRHR') and
Sol Melia SA ('Sol'), to develop the Hard Rock Hotel concept throughout the
Americas and Europe.


The joint venture will combine the strength of the Hard Rock brand and the hotel
management and distribution capabilities of Sol Melia to offer hotel owners a
unique proposition in the 4/5 star segment of the market. Under the terms of
long term management or franchise agreements, the joint venture will develop a
portfolio of hotels in both resort and urban locations. HRHR has established an
experienced development team which will be responsible for the concept, design
and branding within the hotels, and the sourcing of hotel contracts. Sol will be
responsible for the management of the hotels including the sales, marketing and
distribution operations. As the services provided to hotel owners by the joint
venture will be performed either by Sol or HRHR, there will be minimal
operational funding required by the joint venture.


HRHR will contribute to the joint venture the management contract for the 381
room Hard Rock Hotel in Chicago, which is scheduled to open in late 2003. This
will be part of a total commitment by HRHR to contribute contracts over 1,300
rooms located in the United States and the Caribbean before the end of June
2006. Sol will contribute management contracts for a minimum of three hotels
before the end of June 2007. These hotels will be located in the Americas and
Europe.


Under the terms of a separate agreement, Becker Ventures ('Becker') has agreed
to provide equity capital of up to US$1 billion to finance the development of
Hard Rock Hotels to be managed by the joint venture. Becker is a major US
provider of private equity for property-based projects and is the majority owner
of the Hard Rock Hotel in Chicago. Becker has agreed to fund 50% of all HRHR's
development costs up to US$1m per annum.


Mike Smith, Chief Executive of Rank, said:


'We have always believed that hotels represent a major opportunity to further
capitalise on the strength of the Hard Rock brand. This joint venture is another
step towards our objective of broadening our earnings base in Hard Rock through
brand licensing. Hotel owners are increasingly seeking to differentiate their
products and the success of the hotel in Orlando has demonstrated that the Hard
Rock brand can offer consumers a unique hotel experience. Combining the hotel
expertise of Sol Melia, the power of the Hard Rock brand and the financial
support from Becker, we now have a strong platform upon which to build an
additional source of revenue.'


Sebastian Escarrer, Executive Vice Chairman and Chief Executive Officer of Sol
Melia said:


'This is an exciting development for Sol Melia. The strength of the Hard Rock
brand, particularly in the US market, supported by our management expertise and
extensive distribution network, will we believe combine to deliver a valuable
addition to our existing brand portfolio. Both Sol Melia and Hard Rock are
committed to establishing a sizeable portfolio of Hard Rock Hotels and believe
we have an excellent opportunity to create an exciting new hotel concept.'

ENQUIRIES:

The Rank Group                                               Tel: [phone]
Peter Reynolds, Director of Investor Relations

PRESS ENQUIRIES:

The Maitland Consultancy                                     Tel: [phone]
Angus Maitland
Suzanne Bartch




NOTES FOR EDITORS


HARD ROCK

Hard Rock Cafe, one of the most globally recognised music and entertainment
brands, has a network of more than 100 signature cafes in 38 countries and one
of the world's largest collections of music memorabilia. There are currently
four Hard Rock Hotels which are open: in Orlando (650 rooms), Bali (418 rooms),
Pattaya (320 rooms) and also Las Vegas (670 rooms) (owned and operated by Peter
Morton). In addition, there are three locations currently under construction in
Chicago (381 rooms), Tampa (250 rooms) and Hollywood, Florida (500 rooms). The
Hard Rock Hotel Chicago is scheduled to open in late 2003. The locations in
Tampa and Hollywood are both linked to casino developments that are scheduled to
open in Summer 2004 and are part of a previously announced licensing agreement
with the Seminole Indian Tribe of Florida.


SOL MELIA

Sol is the largest resort hotel Group in the world with a total of over 350
hotels in 30 countries, under its Melia Hotels, Tryp Hotels, Sol Hotels and
Paradisus Resorts brands. As at March 2003, 60% of the Group's 86,000 rooms are
located in holiday resorts. Sol has substantial international sales and
marketing operations, offering distribution services in 18 countries.


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