This transaction is the first concrete step taken under the strategic partnership entered into in early August by Jean-Marc Espalioux, Chairman of the Accor Management Board and C.E.O., with BTG, the organization whose mission is to administer state-owned hotels, restaurants, transport and other travel and tourism related services.

The Peace Hotel is a four-star hotel located in the heart of Beijing, in the prime commercial and shopping district of Wangfujing Avenue. It has 416 rooms and suites, and a full range of recreation and leisure facilities. It is a prominent hotel in Beijing and has just been fully refurbished. Accor will assume management of the hotel in early 2000, under the Novotel brand. The Peace Hotel will then become the Novotel Peace Hotel.

In taking over the Peace Hotel, Accor will become one of the leading international hotel groups in China. Accor currently manages five hotels in that country, under the Novotel and Sofitel brands, in Shanghai, Hangzhou, Hefei and Zhengzhou. In Asia Pacific, the group operates 139 hotels in 15 countries.

Commenting on the agreement, Chairman of Accor Asia Pacific, David Baffsky, said that the addition of the hotel complemented Accor�s rapidly expanding network of hotels in China and the rest of Asia.

�The Peace Hotel is a tourism landmark in Beijing and our partnership with the Beijing Tourist Group will provide a long-term structure for both our groups to progress our ambitions both within China and outside China,� said Mr Baffsky.

�We have been looking for the right opportunity in Beijing and we believe the Peace Hotel will fit perfectly into our Novotel network and will be a real flagship for Novotel.

�It is Accor�s intention to expand both our hotel and tourism services networks in China, and with BTG, we believe we have an excellent opportunity to fulfil our ambitions in one of the world�s major growth markets.   In turn, BTG are looking to use Accor�s position as a global hotel and tourism operator to expand its interests in the international arena.�

Accor�s Managing Director, Asia, Anthony Young, said that the agreement highlighted Accor�s assessment of the potential of the China market.

�The business infrastructure is very significant and China continues to grow as a tourism destination,� he said.

�Accor�s strength as the leading European-based global hotel and tourism services group will assist in attracting business and leisure travellers to Beijing as Europe is the major growth market for China.

Beijing Tourism Group is one of China�s most prominent hotel and tourism groups.   It administers 27 state-owned hotels, as well as restaurants, transport and other travel and tourism related services.  BTG has a number of established international partnerships and has been involved in overseas joint-venture investments in the United States, Hong Kong, Vietnam and Hungary.

In China, Accor has plans to open five additional facilities next year � in Beijing, Jinan, Wuhan, Zhengzhou and Pudong (Shanghai) and also plans to expand its travel agency and tour operating services with Beijing Tourism Group. 

Europcar, a subsidiary of Accor and Volkswagen, recently signed a cooperation agreement with leading China car rental group, Shi Ji Tong Car Rental. This makes Europcar the first international car rental company to operate in China.

Accor, the European leader and worldwide group in the universe of travel, tourism and business services, is active in 140 countries with 130,000 associates, through its four major complementary activities: hotels, travel agencies, car rental and corporate services.