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| 22 March 1999 - Accor today announced the acquisition of
Hotel Sofitel Tokyo in Japan. The hotel, which was previously in the Accor
group under a franchise arrangement, was purchased at a significant discount
to the original development cost, and is believed to be the first purchase
of a major hotel in Tokyo by a foreign company. The Bank of Tokyo-Mitsubishi
Ltd. acted as financial advisor in the transaction.
The distinctive Hotel Sofitel Tokyo was opened originally in 1994 and is a landmark building in the centre of Ueno, a major business, educational and tourist area of Tokyo. The 26-storey hotel has 71 rooms, three restaurants and extensive function facilities, including a wedding hall. Following the official take-over of the hotel in April 1999, Accor will undertake a major refurbishment program. A new General Manager has been appointed to the hotel, and Accor will utilise its global network to appoint key personnel with relevant experience to operate in the Japanese environment. The purchase of the hotel is a highly strategic step for the French-based Accor Group, the world�s largest operator of hotels and tourism-services. Japan remains one of the most significant outbound markets for world travel, and the Hotel Sofitel Tokyo will launch Accor�s presence in the domestic market.
�Japan remains the world�s second most important economy after the US and Asia�s principal outbound market and it has been a major priority for Accor to expand its network into Japan�, said Mr Tony Virili, Group General Manager Japan. Accor is also involved in developing its budget Formule 1 hotel concept in Japan, beginning initially with a prototype hotel in Tokyo. Accor also operates a major sales office in Tokyo. Hotel Sofitel Tokyo will join a network of 120 Sofitel deluxe hotels around the world. Currently present in many major centres, Sofitel is undergoing rapid expansion, with new Sofitels scheduled to open in Paris, London, New York and Chicago over the next two years. Hotel Sofitel is managed by Accor, the world�s largest hotel network, with a comprehensive portfolio of over 2800 hotels in every category, from budget to upscale. Other brands managed by Accor include Novotel, Mercure, Ibis and Formule 1. Accor is also a leader in business travel agencies, car rental and service vouchers. |
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| Also See: | Accor and Kishu Railway Co Joint Venture to Build Formule 1 Hotels in Japan / Dec 1998 |
| Accor Expands Sofitel Network to India / Nov 1998 |
It
is believed that the acquisition has established a new benchmark in Japan
with a hotel transaction based more on return on investment, rather than
replacement value of the asset.