Accor Signs Agreement to Further Development Ibis, Formule 1 in Brazil

Accor announced that it has signed a partnership agreement with Walter Torre, one of Brazil’s leading real estate investors, to develop a network of 20 Formule 1 and Ibis hotels in Brazil by 2010. The project represents nearly 5,000 rooms and a total investment of about €200 million.

Present in Brazil since 1976, Accor leads the country’s economy and budget hotel markets with the Ibis and Formule 1 brands.

There are currently 45 Ibis hotels in Brazil with a total capacity of 7,000 rooms. After opening its first establishment in Sao Paulo in 1999, the brand extended its coverage to other major Brazilian cities. According to the partnership agreement, 13 new Ibis hotels will be built in 10 cities, mainly Rio de Janeiro, Brasilia and Sao Paulo.

From its first 300-room hotel in Sao Paulo in 2001, Formule 1 has created a local network of seven large hotels with a total capacity of 2,000 rooms. Based on the agreement, 7 new Formule 1 hotels will be built in 7 cities, including Rio de Janeiro, Brasilia and Porto Alegre.

The stepped-up development in Brazil is part of the Group’s 2006-2010 expansion plan, which calls for a total of 200,000 new rooms around the world, representing an aggregate investment of €2.5 billion.

Fifty percent of the rooms will be located in emerging countries like Brazil, India, China and Russia. As part of the expansion plan, the Group has earmarked €150 million for investment in Latin America.