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Exhibit 10.16

HOTEL LEASE
Amendment No. 2

This agreement, dated the 1st day of September, 1977, by and between CHATEAU
LOUISIANE, INC., a Louisiana corporation hereinafter called "Landlord" and ROYAL
SONESTA, INC., a Louisiana corporation, assignee of Sonesta International Hotels
Corporation, successor by merger of Louisiana Sonesta Corporation (formerly The
Royal Orleans, Inc.), which corporations are hereinafter interchangeably
referred to as "Tenant",

W I T N E S S E T H   T H A T :

WHEREAS, by act dated December 12, 1967, registered C.O.B. 683-D, Folio 40-43,
as amended by agreement dated November 26, 1973, registered C.O.B. 723-C, Folio
269-272 (which act and agreement are hereinafter collectively called the
"Lease"), Landlord did lease to Tenant certain properties located in the City of
New Orleans, and

WHEREAS, it has become apparent that certain changes should be made in the Lease
so as to clarify the original intent of the parties,

NOW, THEREFORE, the parties agree that the Lease between them shall be and the
same is hereby further amended as follows:

1.           By providing that the furnishings and equipment provided by
Landlord pursuant to the provisions of Paragraph (c) of Section 7 of the Lease
shall be construed as a portion of the property leased by Landlord to Tenant.

2.           By adding the following to Section 8 of the Lease:

"Tenant's obligation to maintain the furnishings and equipment shall be
construed in accordance with the provisions of Articles 2719 and 2720 of the
Revised Civil Code of Louisiana, except only as modified by the obligations of
the parties pursuant to Sections 21 and 22 of this Lease."

 
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3.           By adding to Section 26 of the Lease, following the words "the
demised premises", the words "(including the furnishings and equipment)".

IN WITNESS WHEREOF, the parties have caused this agreement to be executed on the
date first above written.

Witnesses:
 
CHATEAU LOUISIANE, INC.
                                 
By
/s/ Lester E. Kabacoff
       
Lester E. Kabacoff, Vice President
                       
Attest
/s/ Stephen B. Lemann
       
Stephen B. Lemann, Secretary
                       
ROYAL SONESTA, INC.
                       
By
/s/ John J. Duane
       
John J. Duane, Vice President
                       
Attest
   

The undersigned Sonesta International Hotels Corporation (formerly Hotel
Corporation of America), as guarantor of the obligations of Tenant pursuant to
the Lease dated December 12, 1967, as amended by agreement dated November 26,
1973, does hereby consent to the execution of the above and foregoing amendment
and agrees that it shall remain obligated in solido with Royal Sonesta, Inc.
pursuant to the terms of the Lease as amended by the foregoing Amendment No. 2,
and agrees that its obligations as guarantor of the Royal Orleans Hotel Lease,
as modified by the terms of the assignment thereof, also remain in full force
and effect.

Witnesses:
 
SONESTA INTERNATIONAL HOTELS CORPORATION
                       
By
/s/ John J. Duane
       
John J. Duane, Vice President

 
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Attest
   

Consent is hereby granted to the foregoing Amendment No. 2:

 
THE EQUITABLE LIFE ASSURANCE
 
SOCIETY OF THE UNITED STATES
                 
By
       
Vice President
 

STATE OF LOUISIANA

PARISH OF ORLEANS

On this 19th day of July, 1977, before me appeared LESTER E. KABACOFF, to me
personally known, who being by me duly sworn, did say that he is the Vice
President of CHATEAU LOUISIANE, INC., and that the above and foregoing
instrument was signed and sealed on behalf of the corporation by authority of
its Board of Directors, and the said appearer acknowledged the instrument to be
the free act and deed of said corporation.

       
Notary Public
 

COMMONWEALTH OF MASSACHUSETTS

COUNTY OF SUFFOLK

On this 1st day of September, 1977, before me appeared John J. Duane, to me
personally known, who being by me duly sworn, did say that he is the Vice
President of ROYAL SONESTA, INC., and that the above and foregoing instrument
was signed and sealed on behalf of the corporation by authority of its Board of
Directors, and the said appearer acknowledged the instrument to be the free act
and deed of said corporation.

       
Notary Public
 

 
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COMMONWEALTH OF MASSACHUSETTS

COUNTY OF SUFFOLK

On this 1st day of September, 1977, before me appeared John J. Duane, to me
personally known, who being by me duly sworn, did say that he is the Vice
President of SONESTA INTERNATIONAL HOTELS CORPORATION, and that the above and
foregoing instrument was signed and sealed on behalf of the corporation by
authority of its Board of Directors, and the said appearer acknowledged the
instrument to be the free act and deed of said corporation.

       
Notary Public
 

 
 
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