PARIS Accor SA plans to build at least 50 hotels for budget travelers in Europe by 2005 in an effort to meet the growing demand for low-cost accommodations. The hotels, known as “Suitehotels,” will cost about 3 billion French francs, or $410 million. Accor expects to recoup as much as 70% of the cost through partnerships with property developers. A room for two at a Suitehotel costs $72 per night, as much as 20% less than Accor s three-star hotels.
A Suitehotel has already opened on the eastern edge of Paris, while 10 similar properties are slated for completion in France, Germany and Austria by 2002. Jean-Marc Espalioux, Accor s chairman, said the company is also interested in buying Swissotel. (3/20/01)
SOURCE:Bloomberg News