Louvre Hotels Group Actively Pursues its Development in France | Opening 28 New Hotels in France in 2011

Louvre Hotels Group, a major player in the hotel sector, is actively pursuing its development in France, its historic market. In 2011, Louvre Hotels Group opened 63 new hotels worldwide (a capacity of 7,000 rooms), 28 of which (more than 1,800 rooms) are located in France. In particular, they are located in France's major cities (including Marseille,Toulouse, Lyon, Nantes, etc.) and in strategic locations that respond to the needs of its business clients as well as tourists from the local area and abroad.

These new hotels are operating under three brands: Première Classe (11 hotels), Kyriad (11 hotels) and "new generation" Campanile (2 hotels). Louvre Hotels Group has also boosted its four star Golden Tulip brand on the French market - which previously had 7 hotels in France -­‐ through the opening of a new site at Lyon Millénaire and the conversion of the Kyriad Prestige hotel at Roissy (150 rooms). This hotel has been awarded its 4th star and is now operating under the Golden Tulip brand.

Louvre Hotels Group consolidates its position as a leading franchiser
Among the 28 openings in 2011, 22 are franchise hotels. Franchises are a major development strategy for the Group in France and last year's excellent results show the success that Louvre Hotels Group has had with its franchisees.

Thanks to the recent operational merger with Golden Tulip, Louvre Hotels Group has a portfolio of six hotel brands, ranging between 1 and 5 stars, which are complementary to each other and are acclaimed by hotel sector investors.

Louvre Hotels Group offers numerous benefits to its franchisees (such as a reservation platform, training and marketing for example) and puts at their disposal modern and quality hotels which meet the standards of the sector and the expectations of clients.

The Group strengthens its presence in the city centres
While the Group's budget brands have historically been situated on the outskirts of major towns, new projects are currently under construciton in the city centres, close to transport infrastructure.

Over the last 12 months, the Group has been able to benefit from the changing urban landscape, the renovation of certain areas and new transport infrastructure to develop in the city centres through the construction of new hotels.

Louvre Hotels Group involves itself in large-­‐scale projects
Louvre Hotels Group is able to offer an all-­‐inclusive service to its investors, including hotel management, administrative assistance and equity placement. Thanks to its expertise and the strength of its brands, the Group has been able to position itself on several tender offers during 2011, such as that of Montpellier Gare St Roch (a construction project for a business centre, including several hotels, a restaurant and appartments) and that of Euralille, where openings are planned for 2013.

Louvre Hotels Group is well-­‐positioned to continue to benefit from such attractive opportunities by offering projects which combine various brands and meet the expected standards of quality and modernity.

Outlook for 2012
Louvre Hotels Group aims to actively pursue its development in France and is planning 25 to 30 hotel openings in 2012, 50% of which will be under management contract. More than 20 new hotels are already under construction and are due to be opened over the next three years. 12 of these hotels will open in 2012, followed by 10 in 2013.

This year, Louvre Hotels Group intends to accelerate the introduction of the Golden Tulip brand into major French cities. With hotels across 37 countries, the Golden Tulip brand has a strong reputation overseas. This will allow the group to target a new clientele in France, thus consolidating its position in the 4-­‐star sector, which offers strong prospects for the future.

Christophe NOVELLON, Director of development in France for Louvre Hotels Group commented that "We are keen to strengthen our network in France in strategic locations for our local and international clients. By constantly adapting our offer, and thanks to the power of our brands, we are in a strong position to benefit from growth opportunities on our historic market."