BANGKOK, 30 March, 2005 - One of the world's largest and best-known hotel brands, Mercure, will launch in Surabaya with the opening of the Mercure Surabaya in June 2006. The hotel is part of Mercure's long-term strategy to establish the brand in Indonesia as it continues its aggressive expansion throughout the Asia Pacific region.

The former Mirama Hotel will be re-branded Mercure Surabaya after an extensive one-year renovation package begins in June 2005 to guest rooms, the lobby and all public areas. The multi-million dollar renovation will feature a modern interior design with an elegant Asian touch, while highlighting the 30-year old hotel's unique history. The hotel is strategically situated in the city's main business district of Jalan Raya Darmo, and surrounded by major commercial developments, government buildings and financial institutions that will appeal to business travellers, corporate meetings, as well as leisure travellers. Once the refurbishment is completed Mercure Surabaya will offer 110 guest rooms, ballroom for up to 550 guests, two meeting rooms, one restaurant and one fun pub, swimming pool, fitness centre, lobby lounge, business centre and fast Internet connections in every room. Accor Indonesia Director of Operation, Gerard Guillouet, said Mercure Surabaya is a special hotel for Accor as it was the group's first property when it entered Indonesia almost 20 years ago.

"We are delighted to welcome the Mirama Hotel back to Accor. It truly is one of Surabaya's best-known hotels and is being restored to its former glory with the current renovation programme. Mercure branding should help raise the hotel's profile both in Indonesia and overseas, as it is well established in Europe and Asia Pacific, which appeals to our core Indonesian and Asian clientele. "In Asia Mercure is being developed as a domestic brand with an international flair, driven by business from intra-Asian travellers and the emergence of low-cost carriers around the region," Mr. Guillouet added.

Mercure Surabaya joins a vast network of over 750 Mercures in 45 countries.  Mercure hotels are renown for being the 'keys to the city' and provide a true taste of the region and country in which they are based. Accor has been aggressively expanding the brand around Asia for the last two years.  In April 2004 Accor rebranded the Grand Mercure Roxy Hotel in Singapore and the Grand Mercure Yogyakarta in Indonesia.

Two additional hotels, Mercure Resort Sanur - Bali and Mercure Convention Centre Jakarta, also reopened in Indonesia late 2004 after extensive renovations to all rooms and public areas. Mercure Ginza Tokyo opened in October last year in Tokyo's top shopping and entertainment district. This high profile entry followed the opening of Mercure Hotel Narita late 2003.

In Thailand, Grand Mercure Fortune Bangkok will be rebranded the middle of 2005, while Mercure Pattaya opens early June, joining Mercure Chonburi on the country's fast growing eastern seaboard. On the Thai-Lao border Mercure Nongkhai Grand Hotel will be rebranded late 2005.