ACCOR TO END MANAGEMENT CONTRACT FOR SOFITEL CAMBODIANA

 Accor announced today that it would not renew its management contract for the Sofitel Cambodiana in Phnom Penh, Cambodia, after its expiration at the end of March, 2001. From 1st April, 2001 the hotel will be managed locally by the owners as the Cambodiana hotel.

The termination, which was agreed amicably by both parties, is a result of the hotel not meeting Sofitel product standards. The owners were unable to confirm an investment schedule to upgrade the hotel’s facilities, and as a result of Accor’s strict brand criteria, it was decided to end the management agreement at the expiry of the contract period.

The General Manager will continue at the hotel till the completion of the management contract, but other Accor staff will be reassigned to other positions in the network.

The decision follows the launch of the 5-star Sofitel Angkor Wat in Cambodia at the beginning of this month. The hotel – one of the finest hotels in Asia – reflects the new status of Sofitel as one of the world’s leading luxury brands. New Sofitel's have recently been launched in Paris, New York, and Tokyo, and Sofitel Cambodiana no longer meets the rigorous standards of the brand.

Announcing the decision, Accor Asia Pacific Deputy Chairman, Jochen Dobel, thanked the owners for their co-operation over the past decade, and said that Accor would look at other management opportunities in Phnom Penh if they arose. Accor currently manages a serviced apartment complex in Phnom Penh, Embassy Place.