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Newsletter September 10, 2002

Confessions of an upper, upscale hotelier

TravelWeeklyEast.com  -  Juergen Bartels, CEO of London-based Le Meridien Hotels and Resorts, oversees more than 140 hotels and almost 40,000 rooms in 55 countries, with a £1 billion-plus turnover. One of the hotel industry’s most respected operators, he has led the Ramada Group in the US, where he started Renaissance Hotels. He moved to the Carlson Hospitality Group as president and CEO before joining Westin Hotels and Resorts in 1995 as chairman and CEO, subsequently becoming CEO of Starwood Hotels and Resorts. In July 2001, he snapped up Le Meridien, with the help of Nomura, where he has embarked on a massive renovation programme, in which the unique Art+Tech rooms are wooing guests worldwide.

He is not someone who likes to sell himself cheaply. Neither does he enjoy seeing others sell his product – Le Meridien Hotels and Resorts – at a discount.

Juergen Bartels – ‘JB’ as he is more widely known – is very much of the opinion: Upscale clients want the best, and they’re happy to pay for it. Most of the time.

Bartels has put his money where his heart is, laying down a wad of dollars to show his faith in an international hotel company whose investors are led by the Japanese bank, Nomura.

“Here’s a little secret,” said Bartels, the keynote speaker at TAX 2002. “When an American flies from Boston to Chicago, he or she nags about the room rate. When that same American flies from Boston to London, he or she does not nag about the room-rate.

“When a German flies from Hanover to Hamburg, he or she nags about the room rate. When the same person flies from Hanover to New York, he or she does not nag about the room rate.”

Bartels said the lesson to be learned was that the premium, long-haul customer paid US$6000 to US$7000 for a business class or first class air ticket did not expect to pay $100 for a hotel room.

“Do charge the customer full price for a hotel room when he pays full price for his airfare,” Bartels urged.

“These customers are not so rare – and they never look on the Internet just to save $25 on a room. So, please, do not give them a discount on mine or anyone else’s hotel room.”

Bartels said that less than 20 percent of hotel rooms globally were sold at rack rate. “The world has been educated about supply and demand in recent months, and everyone’s trying to cut deals.

“But now we’re beginning to stem the tide and uneducate them about making deals.

“We’re in this together – supplier and travel agent – we have the same interests and we don’t like these heavy discounts.”

Bartels said that in the upper, upscale market, five percent of rooms were sold via the Internet, and 60 percent by travel agents.

“It does not take a genius to figure out that my future depends on travel agents.

“Some people say travel agents have lost their power. Are you kidding? Some agents may have gone, but the power concentrates on the remaining 750,000 people selling in 139,000 agencies worldwide. To call these people powerless is a joke.

“These agents could fill my hotels 20, 30, 50 times over, so agents have the power and I know it.”

Bartels said that following the foot and mouth disease in England, quickly followed by September 11, his executive team in London suggested dropping room rates.

“I responded by telling them that someone who does not want to fly would not be motivated by $100 less for a room.

“What we did was to reduce room rates for Europeans but when the Americans come back we’ll retire the Europeans and replace them with Americans.”

Bartels said that in October 2001, Le Meridien’s business dropped 28 percent. Ithe following months, as the impact of September 11 receded, business dropped 23 percent, then 20 percent, 12 percent, nine percent, nine percent and four percent.

“So it took about eight months to get equilibrium.... after the Gulf War it took 14 months to reach equilibrium.

“In October, November and December this year, everyone will look good compared to the same quarter in 2001. The question is, how will we look compared to the same period in 2000?

“This will be the real crux of the matter.”

Source:  TravelWeeklyEast.com  

Business Travel Will Pick Up With Economy

(Reuters) - A year after the Sept. 11 attacks that put a chill on the U.S. travel industry, business travel remains well below year-earlier levels due to the sluggish economy, according to a survey released on Friday.

Some 68 percent of corporate travel managers said travel is down within their companies by as much as 20 percent from last year, according to the National Business Travel Association, which surveyed 200 travel managers over the last week.

Moreover, 72 percent of respondents said current travel is below 2000 levels -- the last time travel was at normal volumes.

Hotel and airlines, which had been hoping for a recovery this year, have seen those expectations dashed when business travelers -- their most lucrative customer group -- failed to return to the road in large numbers as anticipated.

 While the post-Sept. 11 travel crisis was blamed for much of late 2001's downturn, analysts and industry experts believe the current sluggishness owes more to a recent stall in the nation's fledgling economic recovery.

Accordingly, 75 percent of managers surveyed said a stable economy was necessary for business travel to return to normal levels.

"Corporations have been forced to make tough decisions regarding their travel budgets over the past year," said NBTA President Kevin Iwamoto. "While travel is still an essential part of doing business, economic conditions must improve before corporations are willing to return to previous spending levels."

Since the post-Sept. 11 travel crisis, 41 percent of companies surveyed said they have cut back or eliminated luxury travel, while 37 percent said they have redefined their definitions of "nonessential" travel.

Nearly half of respondents, or 45 percent, also said there was a need to reform an airline pricing system that often charges business travelers substantially higher fees for tickets than more cost-conscious leisure travelers.

Some 62 percent of travel managers said that tighter restrictions on nonrefundable tickets, such as those announced yesterday by Delta Air Lines (DAL) and last week by US Airways (UAWGQ), would dramatically increase their travel costs in 2003.

"Most business travel is done on nonrefundable tickets, so these restrictions are going to increase corporations' travel costs dramatically," said NBTA President Kevin Iwamoto. "Corporations and airlines need to work together to develop a new, more rational approach to market pricing."

The nation's top airlines are American (AMR), United (UAL), Northwest (NWAC) and Continental (CAL). The largest hotel operators are Marriott International Inc. (MAR), Starwood Hotels & Resorts Worldwide Inc. (HOT) and Hilton Hotels Corp. (HLT).

Financial Incentives for Historic Renovations

Written By:  Karen Starika

Some of our projects consist of the renovation of historic hotel properties, and frequently our clients are not aware that there are additional economic advantages they can obtain as a result of their efforts. There are several historic tax credit incentive programs available to owners and developers who rehabilitate historic structures, as opposed to doing a contemporary renovation.

The first step is to establish whether or not you really have an historic building.  Often, though it would appear to be a venerable and notable structure, it may not actually have any historic status at all. Designations are typically obtained by either the private or public efforts of individuals who submit properties or neighborhoods for consideration.  If no one has taken the effort, then a perfectly qualified building may not have the status to which it is entitled.

There are several levels of historic designations for buildings. There is the National Historic Landmark status, where the property has a high degree of historic integrity and potential national significance with relation to some comprehensive aspect of American history. 

A building can also be listed in the National Register of Historic Places, where properties are either associated with events that have made a significant contribution to history, are associated with significant persons in the past, and/or illustrate a distinct architectural style or construction methodology.

There are buildings that are located in the National Register’s List of Historic districts, (identified as an historic district by the National Register), or a building could be located in a certified state or local historic district  (identified as an historic district by the state or city).

If your seemingly historic structure has none of these designations, but appears to have qualifications for listing, it might be advisable to suggest that the owner explore the feasibility of applying for that designation. 

 

Not only are there economic advantages through possible eligibility for the federal tax credits, it would make the property available for historic preservation grants and loans administered by non-profit and private foundations.  Listing also provides the building with a measure of protection from impact by government agency or private undertakings. Additionally, historic significance can increase the public’s interest in a project, which could result in increased occupancy rates in hotels. 

 

If you have a property with some form of historic designation, you can recommend that the owner consider an application to some of the available tax incentive programs.

The Federal Historic Preservation Tax Incentives program (1986 Tax Reform Act) allows a twenty percent tax credit for the substantial rehabilitation of historic income-producing properties. The tax credit for certified rehabilitation of certified historic structures is a 20% reduction of taxes owed.  In general, a dollar of tax credit reduces the amount of income tax owed by one dollar.  The 20% credit equals twenty percent of the amount spent in a certified rehabilitation. 

The rehabilitation must be a substantial one and must involve a depreciable building.  A “certified rehabilitation” is one that the National Park Service has approved as being “consistent with the historic character of the property or neighborhood.”  The project must not destroy, damage, or cover defining historic features or materials. 

There is a 10% rehabilitation federal tax credit that applies to non-historic, commercial buildings built before 1936.  There are typically state or local tax incentives offered for historic preservation as well.  Start your research with your project’s local historic, zoning, and planning officials.  You can also recommend contracting an historic consultant; the money that the owner can ultimately save through those services typically more than offsets their professional fees.

Your client will ultimately appreciate your efforts to save the project money, as well.

Karen Starika
JN+A

Vietnam's tourist sector up 10 pct y-o-y and showing no slowdown 

 Asia in Focus
- International visitors are flocking to Vietnam, with figures released by Vietnam Tourism Administration (VTA) showing a year-on-year surge of 10 per cent. The news comes as a masterplan has been approved to develop three tourism zones and six tourism centres, including the already popular world heritage listed Halong Bay.

* The total number of foreign tourists was 1.75 million foreign tourists in the first eight months of this year; domestic tourists numbered 8.1 million in the same period, up 4.7 per cent.

* VTA is currently drafting an ordinance on the organisation and management of tourist resorts and guided tours, including regulations on environmental protection

Banyan Tree to launch first upscale Angsana City Club in Taichung, Taiwan

AsiaTravelTips.com  -  Through a management contract with B & B International Development Co. Ltd, Banyan Tree Holdings, will make its first foray into Taiwan with the opening of Angsana City Club in Taichung. Slated to be Taiwan's finest and featuring the famed Angsana Spa and exclusive dining venues, the private membership club will open in December 2002.

Centrally located in Tiger City, the 5,000 square meter Angsana City Club comprises a 3-level facility (on 7th, 8th and 9th floor) as well as a standalone Glass Tower at the entrance of the shopping mall. The interior design of Angsana City Club blends contemporary chic with oriental grandeur in a timeless environment to reflect Angsana's holistic philosophy to leisure, fitness and relaxation

Angsana City Club Taichung

Angsana Spa - The Club introduces 15 luxurious single and couple spa suites as well as a beauty studio. Exotic outdoor experiences are showcased in the Deluxe Therapy Pavilions, complete with steam, shower, Jacuzzi and couple spa beds, set within tropical rooftop gardens.

Angsana Spa menu presents therapies created to rejuvenate the body, mind and spirit. The treatments place emphasis on the use of natural ingredients such as flowers, fruits, herbs and spices from Asia. Signature massages combine aromatherapy with the sense of touch inspired by a fusion of East and West techniques.

Angsana Gallery - Located at the entrance Glass Tower, the spa boutique caters to guests wishing to replicate the Angsana spa experience in their homes. It features its own line of aromatic bath and essential oils, incense fragrances and scented candles, natural hair and body care products, fashion items, spa music and home spa accessories. 

Wine & Dine - Six new high quality food and beverage outlets at Angsana City Club promise to delight the palates of guests with world cuisines. Panoramic views of Taichung city will become the draw card for an array of exciting restaurants. Located at the open rooftop of Tiger City, a new teppanyaki restaurant is where diners can eat, drink and be entertained by superb culinary showmanship of the chefs.

Another sophisticated and trendy Shanghainese restaurant will open to serve nouvelle Chinese cuisine for lunch and dinner. Guests can indulge in a delectable selection of barbecue seafood specialties offered by a western restaurant and grill while a full service bar caters for social evenings and cocktails. Saffron Restaurant, located at the Glass Tower, specialises in innovative Pan-Asian Thai cuisine amidst an eclectic dining ambience.

The Juice Bar, an informal relaxation area cum café provides healthy refreshments for guests after enjoying a revitalizing spa treatment or an invigorating workout at the gym.

Private Cinema & Venue - A range of stylish business rooms and rooftop venues are available to accommodate a variety of events from private meetings to wedding parties and intimate gatherings. Another privilege is the access to Taiwan's first-of-it-kind twin 'Gold Class' cinema, adjacent to Angsana City Club. Private screenings with cocktails and canapés or presentations with tea breaks can be arranged for members.

Fitness & Relaxation - Other wellness offerings at Angsana City Club include a state-of-the-art gym, a 100 square meters swimming pool, sprawling tropical sunbathing deck, relaxation lounges, indoor and outdoor leisure pools, scented sauna and steam rooms and a studio for meditation, yoga and aerobics. 

Mr Bodo Klingenberg, General Manager of Angsana City Club Taichung said, "The need to relax and recharge one's spirit is now as important as the need to maintain a good level of fitness for the urban social elites that we are targeting. It is this holistic and balanced lifestyle approach that differentiates what  Angsana City Club is bringing into the leisure industry in Taiwan." 

Two Washington Hotels Break With Convention

The New York Times  -  ALL it counter-convention. Washington hotels have always catered to the bland tastes of conventioneers, but the capital now has an oasis of lodging hipness created by the Kimpton Hotel and Restaurant Group of San Francisco.

In two very different neighborhoods, both off the beaten track but in striking distance of museums and monuments, are the Topaz Hotel (1733 N Street NW, 202-393-3000) and the brand new Hotel Monaco (700 F Street NW, 202-628-7177). Both are filled with wild patterns, bold colors and a motley assortment of guests. But the two places couldn't be more different. The Topaz takes edginess over the edge. The Monaco, a dazzling debutante, coolly balances hipness with grandeur.   

The Rooms

The Topaz lobby is an overwhelming riot of color, starting with the doorman and reception staff, who greet guests wearing iridescent, flowing robes, scarves and outlandish hats in deep red and turquoise, a look that might best be described as punk Buddhist. Technopop blasts into the lobby from the Topaz Lounge, where the lighting changes from red to blue to yellow. After this introductory visual assault, the small Topaz rooms ($149 to $275) are positively dizzying. 

 

The beds are covered in stripes and paisley, with polka-dot headboards. The lampshades have harlequin black and white stripes. The rugs have huge, bright yellow snowflakes and then there are red chairs on top of them with a different yellow flower pattern. The walls are celadon with wide beige stripes. Causing a near fatal sensory overload of colors and patterns, there is a huge, round mirror in a sun-dial gold frame reflecting it all. 

 

The Topaz is self-consciously New Age, offering a packet of smooth stones in the rooms and promoting its ambience in newspaper advertisements as "calm and soothing." But between loud music and a decor that could have been designed by Beetlejuice, some guests will have doubts about how soothing a Topaz stay really is. Soothing reassurance does come from the big, down-filled bed, the most comfortable ever. This bed is perfect for sleeping or sipping latte while watching many hours of Sunday pundit shows, de rigueur for a weekend in the center of the political universe.

The rooms in the Monaco ($169 to $350 for single/double rooms; $825 to $995 for suites, with a $650 corporate rate) are much larger and far more luxurious. The large size of the rooms provides needed visual relief from the same basic design impulse of the Topaz to mix a variety of bright colors with many different patterns. With a classical facade, the Monaco occupies a historic building that covers an entire block.

The original building, a post office, was built in the 1800's by Robert Mills, who designed the Washington Monument, and Thomas U. Walter, who designed the cast-iron dome of the Capitol. Original coffered ceilings, beautiful moldings and marble floors have been restored to perfection. Respect has been paid to the old design, but the building has been dressed up with bright red lampshades hanging in the long corridors and brightly patterned rugs in the hallways. The walls in all the rooms are bright yellow, set off by cream molding. A white bust of Thomas Jefferson is perched on a mahogany armoire, which juxtaposes the old and new with humor and grace. The bathrooms are comfortable and roomy. The long windows and amazingly high ceilings in all the rooms are a wonderful change of pace from most hotels and many offer nice views.

Both hotels are pet friendly. The Topaz requires a $50 refundable deposit for pet sleepovers. The Monaco doesn't have an advance charge.

The Scene

The Topaz and Monaco are both lively night spots, attracting Washington's young politicos. The Topaz Lounge is a great place to get a drink and the bistro-style food, especially the excellent French fries, spring rolls and pork satay, is delicious. Cocktails in frosted martini glasses, especially the lemony Blondie, create a festive mood. The drag, once again, is the overdone decor, the zebra ottoman atop a cheetah print rug, and the blaring Euro technopop that grated by the time main courses arrived and caused a migraine by dessert.

The Monaco has a full-fledged restaurant, the Poste, with an attractive open kitchen and extremely solicitous staff. The dishes, from the rib eye steak to the halibut, were succulent and attractively presented. The wine list was first rate, without being overly long or pretentious. And, unlike the rest of the hotel, the color scheme is muted, lots of blond wood and stylish banquettes.

Each hotel dining area was packed on a Saturday night, with diners coming in as late as 9 or 10 — a nice change from the usually early closings of many downtown Washington restaurants. The guests were a mix of the young and the hip, with some older couples in the earlier dinner hours.

The Topaz does not have a gym, although guests can use the Y.M.C.A., a full service gym with pool a block away. The Monaco has a small workout room with new aerobic machines with flat screen video displays.

The Guests

With its modest room rates, the Topaz attracts tour groups and a diverse range of guests, from young couples to older out-of-towners looking for a deal and willing to try something different. During the week, hotel guests mingle with the crowds of young lobbyists and Capitol Hill aides who head straight to the Topaz Lounge for afterwork drinks.

The Monaco crowd was more affluent and seemed to include more people in town on business than pleasure. But the hotel is so new that it is hard to typecast its clientele.

The Environs

Because they are both off the tourist track, the Topaz and the Monaco offer nice introductions to genuine Washington neighborhoods full of good restaurants, stores and sights that aren't flooded with the usual crowds.

The Topaz is near Dupont Circle, a neighborhood full of young people, cool bars like the 18th Street Lounge (1212 18th Street NW) and the Dragonfly (1215 Connecticut Avenue NW) and good restaurants, like City Lights of China (1731 Connecticut Avenue NW), where Mick Jagger once munched on vegetarian dumplings. There are also some nice museums, especially the wonderful Phillips Collection (in a grand town house at 1600 21st Street NW), within walking distance.

The Monaco is in a recently gentrified neighborhood, which has been resurrected by the new sports arena, the MCI Center, across the street from the hotel. Washington's small but intriguing Chinatown is also a stroll away. The area is filled with stylish, new restaurants, including Butterfield Nine (600 14th Street, NW), Oceanaire (1201 F Street NW) and Tosca (1112 F Street NW). Nearby are the headquarters of the F.B.I. (9th and Pennsylvania NW), where tours attract large crowds, Ford's Theater (511 10th Street NW), and the house where Lincoln died, directly across the street from the theater.

ANA Harbour Grand Hotel Sydney Acquired by GIC RE for A$206.5 million, the Largest Amount Ever Paid for an Australian Hotel

NA Holding Pty Ltd has completed the sale of the ANA Harbour Grand Hotel Sydney (the ANA) to GIC Real Estate Pte Ltd (GIC RE). Sonnenblick-Goldman Company represented the seller.

“The sale price of $112 million (A$206.5 million) is the largest amount ever paid for an Australian hotel, and the deal is one of the largest property transactions of any type in Australia this year,” says Robert Stiles, Sonnenblick-Goldman’s San Francisco-based managing director and principal who oversees the firm's Asian practice. The deal surpassed the Westin Sydney sale, which was also purchased by GIC RE earlier this year.

The 36-story ANA is the largest five-star hotel in Australia, with 561 rooms, most of which have harbor views. The hotel has over 20,000 square feet of function space (including a 7,200-square foot grand ballroom that accommodates 900 people), and award-winning restaurants, retail shops and an underground car park. 

Situated in the historic “Rocks” precinct within the central business district, the ANA boasts a unique harbor-side location with a sweeping vista of the Sydney Harbour and its famous landmarks, the Opera House and Sydney Harbour Bridge. 
To ensure a smooth transition, the property will continue to bear the ANA brand and remain a member of ANA Hotels through a license agreement that includes a sales referral system.

The ANA transaction marks the latest purchase of a five-star hotel by GIC RE, which already owns other substantial assets in the Sydney area. In addition to the recently acquired Westin Sydney, they include an office tower at 175 Liverpool Street, the International Broadcasting Centre and a majority share of the Queen Victoria Building, through Ipoh Ltd. 

Dr. Seek Ngee Huat, president of GIC RE says, “We are very pleased to secure the ANA Hotel at this time and to have reached a mutually beneficial arrangement, in keeping the use of the ANA brand through a license agreement, until such time as we engage a new five-star hotel operator.”

Dr. Huat adds, “The purchase of the ANA Harbour Grand is a vote of confidence in the Australian hospitality market. This acquisition, together with the Westin Sydney, is a strong statement of our investment strategy to build up a portfolio of core hotel assets in the Asia-Pacific region. We continue to look for opportunities to invest or co-invest with like-minded partners in the hospitality real estate sector in the Asia Pacific region.” 

Commenting on the deal, Sydney-based Sonnenblick-Goldman managing director, John Smith, says, “The hotel drew strong interest and bids above market expectations from a broad cross section of Australian and international buyers. Investors were attracted by the hotel’s outstanding features and facilities, its strong trading performance and the vacant possession opportunity.

“Whilst some buyer interest initially focused on the possibility of a conversion of the hotel to apartments, the ANA’s potential for further profit growth as the Sydney hotel market begins to turn around during the next two years, delivered a compelling case for its continued operation as a five-star hotel. It is an astute purchase by GIC,” Mr. Smith continues. 

According to New York based managing director and principal Mark Gordon, “The global interest in this asset is yet another sign of the depth of investment interest for quality hotel assets in irreplaceable locations.”  With the closing of this transaction, Gordon notes that Sonnenblick-Goldman's International Lodging & Leisure Group is on track to complete more than $1.5 billion of hotel capital transactions in 2001-2002.

Hotel consultants Andersen Global Management Directions Japan and Horwath Asia Pacific Sydney were also advisers to ANA and managed the vendor due diligence process, in conjunction with lawyers Blake Dawson Waldron. 
GIC RE is a pre-eminent global real estate investment manager.  The firm manages a multi-billion dollar portfolio of direct and indirect property investments worldwide.  GIC RE is the real estate investment company of GIC, which manages the foreign reserves of Singapore.

Sonnenblick-Goldman Company is a leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick-Goldman Company provides a full range of real estate financial services including debt and equity placements, joint ventures, investment sales and real estate advisory services. Headquartered in New York, Sonnenblick-Goldman maintains offices in San Francisco, Tokyo, Sydney and Hong Kong. For more information, visit Sonnenblick-Goldman Company’s website at www.sonngold.com

UK Visitor numbers fail to pick up in July

e-Tid.com  - UK inbound tourism’s uncertain spring/summer continues, with July’s ‘BITOA Business Barometer’ showing visitor number down 4.68% on last year, a wider year-on-year gap than last month.

Visitor numbers had been improving post-11 until May’s figures revealed a 4.78% on May 2001. Numbers narrowed in June, albeit temporarily, to a 1.33% shortfall before July widened again to 4.68%.

Comparisons with 2001 need to take into account FMD, although the negative publicity overseas was on the wane at this stage. July 2001 was down 14.87% on 2000, the year which tourism professionals believe offers a more relevant comparison.

The year so far is 7.1% down on 2001. BITOA said that ‘it could be argued that without the very extensive overseas marketing campaign during the period the decline would almost certainly be worse.’

Forward bookings are 4.21% lower than 2001, with the year so far 3.98% short.

Novotel Hotel brand debuts in Japan

Accor's best-known hotel brand, Novotel, has made its debut in Japan when the former Koshien Miyako Hotel was rebranded to Novotel Koshien Osaka West following a major upgrade of all the hotel's rooms, function facilities and public areas.

The Novotel is a very strategic addition for Accor in Japan, giving a highly visible presence in the Kansai district. Osaka is Japan's second largest city with a day population of over eight million, and industry in the Osaka-Kobe belt - in which the Novotel is located - is one of Japan's most important economic engines.

The hotel is located minutes from Osaka CBD by train, with convenient access to both Kansai International and Osaka Itami airports, the Shinkansen bullet train, the newly opened Universal Studios Japan theme park and the famous port city of Kobe.

The Novotel will cater for a mix of business, conference and leisure guests. All 200 rooms and suites are spacious and offer superb views of the Rokko Mountains and Osaka Bay.

Business travellers can make use of executive floors and an executive lounge, and there are extensive meeting and function facilities, with eight separate banqueting rooms. A variety of restaurants offer a choice of Japanese, Chinese and International cuisines.

The Novotel Koshien Osaka West is also perfectly positioned for leisure travellers, with the most extensive health club featuring a large indoor swimming pool, gym, aerobics studio, jacuzzi and relaxation salon.

The hotel is adjacent to Koshien Stadium, home of the Tigers baseball team, and a short distance from the popular tourist attraction, Universal Studios.

Commenting on the launch of Novotel, Accor Managing Director for Australia, New Zealand, South Pacific and Japan, Michael Issenberg said: "This is an outstanding Novotel and a great addition to the global network. With the Novotel branding we are confident that the hotel will reach a wider international audience to complement its strong position in the Japanese domestic business and leisure markets."

The Novotel is Accor's fourth hotel in Japan. Accor operates a Sofitel in Tokyo and two Formule 1 hotels in Isesaki and Numazu.  

To celebrate the opening, the Novotel is offering a 40% discount off rack rate. The Novotel opening rate is Yen 11,250 (rack rate is Yen 18,370) single and Yen 15,000 (rack rate is Yen 25,740) double occupancy and includes daily buffet breakfast and 10% service charge, but 5% tax is excluded. 10% commissionable to travel agents. Valid till: 28 February, 2003 (conditions apply).