Zhang Shangzhi, CEO of Accor's Ibis China, announced that Accor is planning to spend US$69.11 million to buy 17 floors and 14 floors, respectively, from two buildings of Phoenix City developed by China Resources Land in Beijing.

With these two properties which occupy more than 30,000 square meters, Accor will launch a 4-star Novotel hotel and a budget Ibis Hotel. CR Land has planned to make Phoenix City a complex property involving business, office building and hotels. It also hopes to attract two more international hotel brands to enhance the value of this property.

Zhu Huayue from CR Land told local media that the reason Accor chose CR Land was because of its premier location at Beijing's bustling Sanyuanqiao area.

Last July, Accor announced that it would open 100 Ibis hotels in China in the next 5 years. The purchase this time is part of the efforts for expanding their budget hotel brand and Zhang Shangzhi says that the profit from budget hotel is much higher than those 4-star and 5-star hotels.

The parties will soon sign the final agreement for the transaction.