New Wave of Accor Hotel Openings in Indonesia

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. October 14, 2008

PARIS, France, June 20, 2006. Accor shows faith in Indonesian tourism sector with announcement of nine new hotels by the end of 2008. New Accor hotel openings around Indonesia will target key commercial and tourist centres around the country, highlighting the group's faith in the future of the Indonesian tourism sector.

New Accor hotel openings around Indonesia will target key commercial and tourist centres around the country, highlighting the group's faith in the future of the Indonesian tourism sector.

Four new Novotel hotels and two Mercure hotels are scheduled to open in the next six months. These include Novotel Balikpapan (August 2006), Novotel Bandung (October 2006), Novotel Tarakan (November 2006), Mercure Surabaya and Mercure Manado (both during Q4 2006) and Novotel Nusa Dua in Bali (early 2007).

The additions of Balikpapan, Bandung, Nusa Dua and Tarakan will expand the Novotel network to 16 hotels across Indonesia by the end of 2006, making Novotel the largest single international hotel brand represented in the country.

Three new Ibis hotels were also announced, with the new hotels scheduled to open over the next two years in Solo, Semarang and Cawang in Jakarta.

The new hotels will increase Accor's network from the current 32 hotels to over 40 within the next two years, further establishing the group as Indonesia's largest and pre-eminent international hotel group.

Accor Asia Pacific Managing Director Michael Issenberg said Accor is able to continue its expansion around Indonesia despite tough market conditions because unlike many international companies it targets a wide cross section of the market and not just top overseas travellers.

'Much of our business is locally or regionally based, and because of this strategy, our hotels have so far performed in line with the occupancy rate of last year, which is very pleasing given the challenges we've faced,' he said.

'The six Novotel and Mercure hotels we are opening in the next two years will be located in Bandung, Balikpapan, Bali, Tarakan, Surabaya and Manado, all important destinations for domestic and regional business and leisure travellers.

'Some people might think this would be a difficult time to announce such an extensive expansion so soon after the Yogyakarta earthquake, but actually it is very good timing, as it demonstrates our great faith in the future of the Indonesian hotel and travel sector,' Mr Issenberg added.

'Indonesia has experienced a number of natural and other disasters in recent years but the tourism industry has proved its resilience time and time again. With strong economic growth predicted for the next few years, we believe that business and leisure travel will continue to grow and Accor is developing an ideal network of hotels to service this growing market.'

Among the hotel openings announced, a new entrant to Indonesia this year will be Accor's timeshare company, Accor Premiere Vacation Club. The joint-venture is an investment in Novotel Nusa Dua that not only reflects the group's commitment to Indonesia but to Bali in particular.

Accor Premiere Vacation Club is marketed throughout Australia and New Zealand, and the opening of the Novotel Nusa Dua property will help re-build travel between Australia and Bali in future years.

Accor's first-ever hotel in Indonesia - the Mirama Hotel in Surabaya - is also rejoining the group and will be re-branded Mercure Surabaya late 2006 after an extensive renovation package is completed. All guest rooms, the lobby and all public areas will be renovated and feature a modern interior design with an elegant Asian flair.

Accor assists Central Java earthquake relief effort

Accor Indonesia continues its massive relief effort to help victims of the tragic earthquake in Yogyakarta late last month. Working together with Indonesia Red Cross, NGOs and private companies, all Accor hotels around Indonesia are actively collecting funds and donations for the refugees, victims and local hospitals in Yogyakarta.

Key actions include fund raising to support staff and relatives, building temporary shelters and helping staff rebuild houses lost during the earthquake. They have also been provided with basic foodstuffs, cookers, clothes, medicine, blankets and tents.

Donations to Yogyakarta hospitals included drugs and essential medical items, plus food staples and over 2,000 hot meals were distributed in the days following the earth quake.

Accor Indonesia is also expanding its innovative 'Tree for a Child' project in 2006 following the launch throughout Indonesia in February 2001.

'Tree for a Child' is a social and environmental programme aimed at alleviating poverty and protecting the environment. The programme has been established around Indonesia with the long-term objective to make poor children healthy, happy and also to create a friendly environment for them to grow up in. Accor plants fast growing trees to help finance the education of poor children, which is also supplemented by selling recycled items obtained from our hotels.