NEW SOFITEL FOR CHENGDU IN SICHUAN PROVINCE

Accor continues its strategic expansion in China's key regional areas

Global hotel group, Accor, announced today a new 5-star Sofitel in Chengdu, the provincial capital of Sichuan Province, China's most populous province (100 million people).

The US$45 million project is being developed by the Dalian Wanda Group, a prominent property developer in China. Accor will provide technical assistance for the hotel's developers and then operate the hotel under a long-term management agreement. The hotel is scheduled for opening in mid-2001.

The Sofitel Wanda Chengdu was announced at an official signing ceremony, held today in Chengdu, attended by representatives of Dalian Wanda Group, Accor and local dignitaries.

Chengdu has become one of China's most important centres for technology, trade, commerce and finance, and is the hub of transportation and telecommunications in southwest China.

Located on the upper reaches of the Yangtze River, Chengdu is also one of China's premier tourist destinations. With a rich history and culture dating back 2300 years, Sichuan is famous for its nature, scenery, historical relics, giant Pandas and world-renowned Sichuan cuisine.

For Accor, it will add the10th hotel to its network in China, and the 4th Sofitel.

Importantly, Accor has a significant presence in Shanghai and Beijing, the two major gateway cities for business and leisure travellers visiting Chengdu. The city is well serviced by all modes of transport, with direct air services to international cities such as Hong Kong, Singapore and Bangkok.

The Sofitel is the first European branded 5-star hotel in Chengdu and will boast one of the city's best locations. The 319-room hotel will have five restaurants, three bars, a business centre and extensive conference and banqueting facilities, comprising 10 meeting venues. The hotel's leisure facilities will include a fitness centre, spa facilities and a large indoor swimming pool.

Commenting on the announcement of the new Sofitel, Mr. Reggie Shiu, Accor's Senior Vice President - Asia, said: "Chengdu is one of China's most important centres for both business and tourism. It will be a highly strategic addition for our group, building on our already well established presence in other key regional centres such as Hangzhou, Zhengzhou, Hefei and Jinan.

"We see Chengdu growing in particular as a tourist destination. Sichuan Province has so many spectacular tourist attractions and with the development of quality hotels such as the Sofitel, the area will now have the infrastructure to support large international tour groups. We believe that there is great potential for increasing tourism from destinations such as Europe, America and Australia, where Accor has a very large presence and the Sofitel brand is well known.

"This new project highlights the increasing recognition for the Sofitel brand in China. With recent openings in Zhengzhou and Jinan, and with the major refurbishment of the Sofitel Hyland New Sofitel for Chengdu in Sichuan Province Shanghai, the Sofitel brand is set to become one of the premier 5-star brands in this dynamic country."

Accor has been an established player in China for close to a decade, and its current network comprises Sofitels in Shanghai, Jinan and Zhengzhou and Novotels in Beijing, Shanghai (2), Hangzhou and Hefei. Another Novotel, in Wuhan, is scheduled for completion in 2001.

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Sofitel is the upscale brand of Accor. There are 145 Sofitel hotels and resorts around the world, with recent major openings in New York, Philadelphia, Paris, Tokyo and Angkor Wat.

Sofitel is managed by Accor, the European leader and one of the world's largest companies operating in travel, tourism and services. Accor is present in 140 countries and has two major international activities:

- hotels: 3,400 hotels in 90 countries (including over 170 in Asia Pacific under brands such as Sofitel Novotel, Mercure, All Seasons, Ibis, Formule 1) and travel agencies, restaurants and casinos;

- services: each day, over 11 million people in 30 countries use a broad range of services (vouchers and cards, online services) developed, issued and managed by Accor on behalf of corporate clients and public authorities.