NEW YORK / Accor, one of the world's largest hotel and tourism companies, announced plans today to build its first four-star hotel in New York City, scheduled to open in 1999.

The 400-room Hotel Sofitel will be constructed in a prime midtown location, on what is now a vacant lot between Fifth and Sixth Avenues, from 44th to 45th Streets. Today, John F. Lehodey, president of Hotel Sofitel North America, a division of Accor, closed a transaction to purchase the land from an off-shore investor. Groundbreaking is expected to take place before the end of the year and the hotel is tentatively scheduled to open in the first quarter of 1999.

Representing the seller was Boaz (Buzz) Shattan, Senior Investment Director, the Greenwich Group International, a New York-based real estate investment banking firm. On behalf of Hotel Sofitel North America, the deal was brokered by the BJ Organization Inc. of Manhattan.

For Sofitel, the agreement today underscores the company's strong commitment toward development efforts in North America.

"We are very pleased to announce the launch of this project," said Lehodey. "New York is definitely a key city for any major player in the hotel industry and it is a market we have been interested in for years. We look forward to bringing our unique style of French hospitality to Manhattan."

According to Buzz Shatton, "Forty-fourth street between Fifth and Sixth Avenues is one of the great landmark blocks in the City, distinguished by such prestigious institutions as the Algonquin and Royalton Hotels, the New York Yacht Club and the Harvard Club."

According to Lehodey, the New York project is the first step in a planned expansion for the Sofitel brand in North America. Last December, Sofitel North America completed a sale/leaseback agreement for five of its seven U.S. hotels. The sale/leaseback was part of Accor's financial plan to reduce long-term debt in order to pursue joint venture acquisitions, development leases and management contracts. Similar transactions involving several of Sofitel's European properties were completed earlier this year.

Accor is now actively seeking additional developments for its Sofitel brand within the United States in both major cities and feeder markets. Sofitel currently operates hotels in seven U.S. cities: Chicago, Houston, Los Angeles, Miami, Minneapolis, San Francisco Bay and Washington, D.C. The new hotel will be Accor's second property in New York; the three-star Novotel on Broadway at 51st Street is also an Accor hotel.

Paris-based Accor employs 120,000 people in 126 countries, with two core areas of activity, hotels and business services, along with some complementary holdings. The hotel group encompasses five other major brands in addition to Sofitel and Novotel; these include Mercure, Ibis, Formule 1, Etap and the well-known Motel 6. In 1996, Accor operated 2,378 hotels representing more than 268,000 rooms in 68 countries. Accor is also a leader in the service voucher and institutional catering industries, and has a 50 percent stake in Carlson Wagonlit Travel.

Hotel Sofitel North America is headquartered in Scarsdale, N.Y. Worldwide, Sofitel has more than 100 properties in Europe, Africa, the Americas, Asia Pacific, the Middle East, Caribbean, the Indian Ocean and French Polynesia.

Laura Davidson Public Relations, 212/353-2169
Accor, Sofitel