Colony Capital announces the conversion of its Accor convertible bonds

Paris, 3rd July, 2007

Colony Capital will convert into Accor SA shares its convertible bonds with a nominal value of €500m. Following this conversion, Colony Capital will own directly 10,3% of the Accor share capital on a non-diluted basis.

Colony Capital invested €1bn in Accor in May 2005, both in mandatory convertible bonds for €500m and in convertible bonds for €500m.

The early redemption by Colony Capital of its mandatory convertible bonds took place on April 10, 2007.

The early redemption by Colony Capital of its mandatory convertible bonds and the conversion of the convertible bonds reflect the willingness of Colony Capital to continue its investment into Accor and its role as a board member and large shareholder in order to support Accor in its development strategy.

Contact:
Lisa Baker
Owen Blicksilver PR, Inc.
+1 914-725-5949
lisa@blicksilverpr.com