AHCG.L Regulatory News (AHCG)

Action Hotels plc

("Action Hotels")

Sheikh Mubarak A M Al-Sabah, Chairman of Action Hotels and Sebastien Bazin, Chairman and CEO of Accor meet in London to discuss hotel opportunities in the Middle East and Australia

Sheikh Mubarak A M Al-Sabah, Founder and Chairman of Action Hotels, the AIM London Stock Exchange-listed, leading owner, developer and asset manager of branded three- and four-star hotels in the Middle East and Australia met with Accor's Chairman and CEO Sebastien Bazin in London yesterday to discuss their growing partnership in the Middle East and Australia.

Accor and Action have been working together since 2005 to address the substantial opportunities in the economy and midscale hotel sector across the Middle East. Action Hotels has pioneered with Accor the development of the economy and mid-market hotel segment in the Middle East and have a current portfolio of ibis hotels trading well in very attractive markets.

The economy and midscale hotel market within the Middle East remains noticeably undersupplied, with less than 20% of the announced pipeline of hotels in the region falling within the economy and midscale sector as the focus remains on upscale and luxury hotel development.

The demand for consistent value-for-money accommodation is escalating as a result of the growing economic fundamentals driving the increasing number of intra-regional business and tourism travellers.

With more than 45 years of experience, Accor is one of the world's leading hotel operators, with properties across 92 countries comprising more than 3,600 hotels and 470,000 rooms. The extensive collection of Accor brands ranges from economy to luxury, with both international and regional brands.

Meanwhile, Action Hotels own and develop three- and four-star hotels either on a freehold or long leasehold basis, partnering with global operators with strong brands who are looking to expand their portfolio on an asset light model. Action works closely on the day-to-day management of all of its hotels in conjunction with the Operator under a long term management agreement.

Action and Accor partner on five operating hotels all under the ibis brand. The two companies have also announced an additional four hotels due to open by the end 2016, three under the ibis brand in Bahrain, Oman and Australia (which will be the largest ibis hotel in Australasia) and a Novotel expected to open in Kuwait in 2017. The Novotel Kuwait will be the first time Action has partnered on a four-star product in the Accor stable and sees Action Hotels and Accor in on-going discussions for new partnership opportunities.

Sebastien Bazin, Chairman and CEO of Accor stated: "Our meeting yesterday underpins the importance of our long partnership with Action Hotels, especially in the Middle East. Action Hotels are leading the way to own and develop economy and midscale across the region, addressing the growing demand for this type of hotel accommodation whilst the majority of hotel developers are still focusing on the luxury sector.

 "Our strategy within the region is to expand our rooms by using an asset light model which, in addition with the requirements to work with local partners, makes Action Hotels a great partner for us. We look forward to a continued partnership."

Sheikh Mubarak Al Sabah, Founder and Chairman of Action Hotels stated: "I first approached Accor in 2005 with a plan to bring the first economy business hotel to Kuwait. Since then we have worked to achieve five operating hotels with a further four in our committed pipeline. We are privileged to be partnering with Accor under the three star ibis and four star Novotel brands and we look forward to growing and strengthening our partnership."

For more information contact:

Action Hotels plc +44 (0) 20 7907 9663

Alain Debare, Chief Executive Officer

Katie Shelton, Communications Director

finnCap (Nominated Adviser & broker) +44 (0) 20 7220 0500

Matthew Robinson / Grant Bergman / Scott Mathieson