Hindustan Construction Selects Accor as Operator

First Two Hotels Within Lavasa Township

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. October 14, 2008

BANGKOK, Tahiland, December 7, 2006. Hindustan Construction Company Ltd. (HCC) today announced that Accor Hotels and Resorts had been chosen as operator for the first two hotels within its pioneering Lavasa township near Pune. Accor is one of the world's largest operators of hotels and resorts, with over 4000 hotels in 90 countries.

The first hotel project to be developed by HCC in technical collaboration with Accor Hotels will be a 250-key Novotel Resort on a 12-acre waterfront site at Lavasa, while the second project will be an 80-key Grand Mercure Spa resort to be located on a 7-acre site.

Speaking at the signing ceremony, Mr. Ajit Gulabchand, Chairman and Managing Director of HCC said, "It is our vision to build Lavasa with world-class tourism infrastructure and choosing the right operator for this project is extremely important and are delighted to invite Accor to manage these hotel projects. What attracted us to Accor is their substantial long-term commitment to India and their ethos of working in true partnership with hotel developers and owners. I very much look forward to a growing relationship".

Mr. Uttam Dave, Head of Development for Accor Hotels in India, said, "Lavasa is a truly pioneering development that exemplifies the entrepreneurial sprit of this country. I have seen it transform from just an idea and a barren tract of land to a green destination with a soul. It will grow to become one of India's most popular destinations".

In a message from Sydney, Mr. David Baffsky, Chairman and Chief Executive Officer of Accor Asia-Pacific, said, "We are delighted to be partnering Hindustan Construction Company, who have contributed so much to India's infrastructure development over the last century. At Accor, we too are committed to developing India's economic infrastructure, through the development of our hotels across all price segments and all destinations".

The 15,000 acre Lavasa township, cradling a 20sqkm man-made lake, and located some 200km from Mumbai and 65km from Pune, sets a new paradigm for India in urban and infrastructure planning. Conceived as India's first post-Independence Hill Town, the destination has been planned according to the Principles of New Urbanism. The destination brand vision of "Life in Full" was developed by the world's leading brand advisory, Landor Associates. The township itself has been master-planned by world-renowned planners Hellmuth, Obata + Kassabaum to develop into a world-class, integrated urban and economic centre providing an aspirational lifestyle and facilities where the people can live, work, learn and play, in harmony with the highest environmental ideals.

HCC, through its subsidiary HCC Real Estate, owns 60 per cent of Lavasa township venture. The Lavasa project has already won some of the world's most prestigious planning awards from The Congress of New Urbanism, USA and The American Society of Landscape Architects - the only development in India to win such awards.