BANGKOK, June 11, 2001 - Accor has been awarded a ten-year contract to manage the 80-room Panwa Beach Resort on the southern Thai resort island of Phuket.

Tucked into a picturesque corner on the Panwa Peninsula on the southern - most part of Phuket, the resort features a private white-sand beach with crystal blue ocean waters. The secluded location is popular with families, honeymooners and couples looking to escape crowded mainstream tourism destinations. An additional 70 rooms will be added to the property, bringing total inventory to 150 rooms. Meeting and banquet facilities will also be expanded, and another restaurant will be added to an existing bar and international restaurant. An impressive pool complex and an exciting array of water sports complete the resort's unique offerings.

The property represents an important addition to Accor's growing resort network in southern Thailand, which currently includes the Novotel Coralia Phuket near Patong Beach and the Mercure Coralia Resort on Koh Samui.

Accor Senior Vice President Asia, Reggie Shiu, said the Panwa Beach Resort was an ideal fit for the Mercure brand and would further strengthen the company's growing portfolio of resorts in key destinations around Thailand.

"We are very excited to welcome the Cape Panwa Resort to Accor. It is an unique beach-front property located in a very exclusive part of Phuket, and with the strength of Mercure branding we expect it to do very well."

Panwa Hotel Company Chairman, Nakorn Laksanakarn, agreed: "We believe the Mercure name is the perfect fit for our hotel. Accor's worldwide sales and marketing network will give the hotel the opportunity to grow our business on a global scale."

Initially the resort will be an Accor associate hotel while the extensive renovation is taking place. Once completed the property will be rebranded Mercure Panwa Beach Resort by May 1, 2002.

With 130,000 associates in 140 countries, Accor is the European leader and one of the world's largest groups in travel, tourism and corporate services.

Tom Racette
(662) 267 0810 ext 2008
Accor