Hotels Accor Looks For Asian Opportunities

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HOTELS ACCOR LOOKS FOR ASIAN OPPORTUNITIES

More to follow Silom acquisition

BANGKOK: -- Hot on the heels of its recent acquisition of the Sofitel Silom, the European hospitality giant Accor is seeking further acquisitions in Thailand to increase its presence in the country and the region.

``We are looking at all opportunities that arise for management and or equity participation in any properties that fit our investment criteria,'' said Michael Issenberg, president of Asia Pacific for the Accor Hotel group.

``We could look at possibilities of talks with the current owner of the Sofitel Sukhumvit for equity injection, as ... the construction process has been slower than expected,'' he said.

The 380-room Sofitel Sukhumvit was to open next year but the financial troubles at Natural Park Plc, which also owns a big stake in the contractor hired to build the hotel, Syntec Plc, has delayed work.

``We are open to discussions with the shareholders and the project, being a good one, can be looked on by us for equity investment,'' Mr Issenberg said.

Accor last week joined with LaSalle Asia Opportunity to buy the controlling stake in the Sofitel Silom for 2.4 billion baht with 1.1 billion in cash (net after debt repayments) from Sansiri Plc, another firm in which N-Park has a large stake.

Mr Issenberg said his company continued to have a positive view of the Thai hotel and tourism industry. Accor counts Thailand among the top four countries after China, India and Vietnam where it foresees solid tourism and hospitality industry growth in the future.

As part of its effort to increase its presence in the country, Accor said it would add four new hotels, apart from plans to launch three new properties under its Ibis budget brand in Bangkok in the future.

Accor operates 19 hotels in Thailand under the Sofitel and Novotel brands.

In the pipeline are the 250-room Sofitel Phokeethra Krabi, the 79-room Sofitel Nang Yuan Island, the 240-room Novotel Tipviman Cha Am and the 400-room Novotel King Power near the Victory Monument skytrain station.

Accor will also manage the Novotel Suvarnabhumi Airport Hotel, once the new airport opens early next year.

Accor sustained some damage from the December tsunami at two properties in southern Thailand. It hopes to reopen the Sofitel Phi Phi Resort & Spa in November, and is still in talks with the owners of the property it managed in Khao Lak on the possibility of helping to rebuild.

``We are expecting the southern resorts to be back on their feet during the upcoming peak season later this year,'' Mr Issenberg said.

--Bangkok Post 2005-06-06