Global Hospitality News - ARCHIVE 2003

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News Archive for March, 2003

March 15- 31, 2003

March 17, 2003

WTTC reports on the potential impact of an Iraq war on travel & tourism

The uncertainty created by the potential conflict in Iraq has led the World Travel & Tourism Council to produce two sets of research to more fully explain the potential outcomes. WTTC has identified a base case scenario in which there is a diplomatic solution or victory after a short, contained war. Secondly, the more devastating impact of a prolonged war scenario was analyzed. The WTTC research, produced for 161 countries worldwide, demonstrated the importance of Travel & Tourism to the world economy when the direct and indirect economic impacts of the industry are assessed.
For detailed report,Click Here

Reit faces choice on Orb hotels

London-based Reit Asset Management must decide today whether to proceed with the purchase of 37 Thistle-branded hotels that Orb Estates plc has put for sale. Reit is reportedly willing to pay about ?700 million ($1.1 billion) for the hotels, although independent estimates have valued them at about ?830 million. Reit has has performed due diligence at the hotels during a four-week exclusivity period. During this period, Orb has been allowed to market the hotels to other buyers but has not been able to accept alternative bids.

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Hilton Sets Date for 1st Quarter Earnings Release and Conference Call

Hilton Hotels Corporation has scheduled Wednesday, April 23, 2003 for the release of the company's first quarter financial results and conference call. The results will be issued prior to the opening of the market on April 23, with a conference call to follow that day at 12 p.m. Eastern time (9 a.m. Pacific).

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ITB 2003: Positive commercial results despite difficult economic situation

"Here at ITB Berlin the industry`s message was clear: despite a weak bookings situation we will not bury our heads in the sand but intend to utilise this crisis as an opportunity for restructuring. In this way the ITB fulfils its role even more emphatically, providing the industry with a fresh impetus, and it has strengthened its position as a worldwide leader in its field." This was how Dr. Christian Goke, Chief Operating Officer of Messe Berlin summed at the fair. During this five-day event there were many positive indicators for the tour operators, airlines, hotels and 181 destination countries. Interest in travel remains as keen as ever and while in Berlin the international tourism industry was already preparing its strategies for the period following the current crisis.For detailed ITB report,Click Here

HORECA prepares 150 exhibitors for the Levant's largest Hospitality Forum

Weeks ahead of the 10th and largest edition of the annual HORECA show taking place April 1-4, 150 exhibitors from numerous industries gathered at BIEL to receive briefings on technical details of participation and tips on organizing their stands for optimum attraction. In an open discussion with key HORECA spokespeople, exhibitors from hotel, resort, night club, food & beverage, franchise, finance, catering, equipment supply, restaurant and other profiles exchanged queries and ideas.

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Arabian Travel Market on course for biggest show to date regional uncertainties fail to impact mid east travel and tourism expo

Reed Travel Exhibitions (RTE), which organises Arabian Travel Market, says this year`s event is "well on track to be the biggest show to date." "It is safe to say that, to date, the uncertainty in the region has not affected Arabian Travel Market," said Matt Thompson, Group Exhibition Director, Overseas Events, RTE. RTE says that with three months to go before the 2003 Arabian Travel Market, which will be held at the Airport Expo, Dubai, United Arab Emirates from May 6-9, the show is already already 5% square metres larger than last year`s record-breaking event.

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Marriott opened 31,000 rooms in 2002, despite tough market conditions

Despite an extremely difficult trading environment, Marriott International says that its rooms opening were stronger than had been expected in 2002, and an additional 31,000 new rooms in almost 190 hotels and timeshare resorts were added to the portfolio. This brings the group`s room count in all its brands to 463,429 in 2,557 hotels and timeshare resorts. Speaking at ITB, Ed Fuller, president and managing director of international lodging for Marriott International said Marriott`s aggressive growth would continue to be a priority. In 2003 and 2004 between 25,000 and 30,000 rooms are scheduled to open each year.

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IATA International Traffic Statistics January 2003

AsiaTravelTips.com - IATA's provisional figures for January 2003 show all major regions posting positive results with most carriers following this pattern. January 2003 saw total scheduled international passenger traffic (in RPK terms) increase by 10.97% on January 2002. This is less than the 13.02% recorded in December with the slightly higher base rate for these year-on-year comparisons again being a contributor. In contrast, overall capacity (expressed as ASKs) improved from 8.45% last month to 10.22%.

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Big hotel chains are striking back against Web sites

"If we are not careful, these wholesalers will become ... so big and powerful that we will have to work with them," Eric Pearson, a vice president at Six Continents PLC, told a conference of about 1,800 hotel owners last fall. "And you will have to pay a premium to be on their shelves." Six Continents owns the Holiday Inn, InterContinental and Crowne Plaza brands. Executives at the Web sites say they are helping the hotel industry by bringing them new customers. "Whenever you have disruptive technology, some resist it," says Erik Blachford, incoming chief executive of Expedia Inc. Last year, Six Continents, Starwood and Cendant Corp. -- which owns Ramada Inn, Howard Johnson and seven other lodging brands -- launched a price war with the online brokers.For detailed report,Click Here

March 19, 2003

Hotel Loan Problems On The Rise Again - Prolonged Hotel Market Weakness Taking a Toll - PKF Consulting Reports

Hotel performance has been on a downward spiral over the past two years, putting a strain on the ability of many property managers and owners to cover expenses. The Hospitality Research Group of PKF Consulting (HRG) examined over 3,900 financial statements contained in the Trends in the Hotel Industry database and found that the number of deficient hotels, those with insufficient operating income to cover interest expenses, rose significantly in both 2001 and 2002. For detailed report,Click Here

News @ PATA

PATA URGES ACCURACY AND CAUTION OVER 'FLU' ADVICE -- PATA is calling for accurate, restrained and sensible travel advice and media reporting following the outbreak of severe acute respiratory syndrome (SARS) in certain cities. In a press release issued March 17, PATA said that the travel industry in the Pacific Asia region should follow the advice of the World Health Organization (WHO). PATA is urging that all travel and health advisories and media coverage be as geographically specific as possible, and not make alarmist general statements about the region. For the rest of this week's PATA news and update,Click Here

HVS International European Hotel Valuation Index 2003

HVS International's London Office has released the latest edition of its annual review of European hotel value trends, the Hotel Valuation Index (HVI). The European HVI has tracked trends in hotel values in key regional markets since 1993. The survey covers upscale hotels in 28 gateway cities across the continent. To view the survey,Click Here

Poland forecasts modest growth in tourist arrivals

International tourist arrivals in Poland have been declining for five years but the Warsaw-based Institute of Tourism forecasts that some markets will begin to pick up in 2003 or 2004. Higher-spending west European countries will generate more visitors, and Eastern countries fewer. By 2007, the volume of tourist arrivals should have almost regained 2001 levels, with 14.8 million tourist arrivals forecast.

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HSMAI Chapter Leadership Forum to be held in Chicago

The chapter leadership of the Hospitality Sales & Marketing Association International`s (HSMAI) Americas division will meet in Chicago from April 2-4, 2003 for its Annual Leadership Forum. "The HSMAI Chapter Leadership Forum is one of our most important initiatives in that it provides executive directors and presidents of the HSMAI chapters with the tools, ideas and inspiration to better serve and provide greater value to its members - a constituency of professionals in the hospitality and travel industry involved in the sales and marketing disciplines," states Robert A. Gilbert, CHME, CHA, president & CEO of HSMAI.

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A new Bangkok Shangri-La fights back

Armed with a new product and an aggressive sales and marketing team, Shangri-La Bangkok is set on becoming the leading hotel on Bangkok's Chao Phraya river. General manager Adrian Mueller said that despite the fierce competition in the Bangkok market, the new product, US$20 million later, and smart marketing will enable the hotel to claw back market share.

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Eleven million overnight stays in hotels in Berlin

In the tourism year 2002 4.75 million visitors from inside and outside Germany were registered in the accommodation sector in the city of Berlin: 3.6 percent fewer than in 2001. The number of overnight stays, at around eleven million, was 2.9 percent lower than the previous year. The reason for these declines is the reticent travel behaviour of indigenous visitors: the ongoing despondent economic climate in the country was the main reason why hotels and guesthouses in the city on the river Spree last year welcomed 5.7 percent fewer domestic visitors (3.55 million) than in 2001.

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Middle East crisis - What crisis?

The travel and tourism industry in the Arab region represents an annual economy valued at more than US$60 billion, which makes it the largest sector after oil. The World Tourism Organization (WTO) estimates that the region will generate more than 60 million travelers by the year 2020, a significant increase from 2002 level of 20 million travellers who spent over US$29 billion. Oil prices have surged, hitting a 26-month high on 10 February, but the consensus forecast is for the price to fall again to below US$30 by summer 2003 and perhaps to US$25 by this time next year.

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TUI invests in new hotels

TUI will continue to expand its hotel portfolio in 2003 with 21 new properties in nine destinations. TUI Hotels & Resorts, currently with 150,000 controlled beds in 287 properties, increased turnover last year to EUR 1.5 billion through 285 hotels and clubs in 30 countries from EUR 1.3 billion in 2001.

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March 19, 2003

Hotel Loan Problems On The Rise Again - Prolonged Hotel Market Weakness Taking a Toll - PKF Consulting Reports

News @ PATA

Investors call on Six Continents to freeze out Richard North

Richard North, Six Continents' finance director, looks set to be forced out of the pubs-to-hotels group by its largest shareholders. His ousting is the price they demanded for backing the board's demerger plan last week. North had been lined up to become chief executive of the demerged hotel business but shareholders have been gunning for him. Last night one of them told the Financial Sunday Express: "North has failed miserably and the sooner the company gets a new CEO the better.

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Strategic Hotel Capital registers interest in Six Continents' hotels

Strategic Hotel Capital, the US hotel investment group, is looking at the hotels arm of Six Continents, due to be demerged in April, the Financial Times reported.

Chief executive Laurence Geller told the paper: "We remain interested. The company is very much in play and we would like to be a player."

HVS International European Hotel Valuation Index 2003

Poland forecasts modest growth in tourist arrivals

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HSMAI Chapter Leadership Forum to be held in Chicago

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A new Bangkok Shangri-La fights back

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Eleven million overnight stays in hotels in Berlin

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Middle East crisis - What crisis?

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TUI invests in new hotels

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March 20, 2003

Orb throws open hotel auction

British property and investment company Orb Estates has opened an auction of 37 Thistle branded hotels to potential bidders after a period of exclusivity enjoyed by Reit Asset Management expired. Interested parties, which include other undisclosed investment companies, property investors and several individual entrepreneurs, are now free to place their bids for the portfolio of hotels after Orb's exclusive negotiations with Reit terminated Monday without a deal, a person familiar with the auction said Tuesday.

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SARS source found; Concerns shift to war

Some relief came last night for Hong Kong, as doctors confirmed they have identified the Severe Acute Respiratory Syndrome (SARS) virus as a member of the paramyxoviridae family, and identified a treatment. The team of doctors from the Prince of Wales Hospital and Chinese University of Hong Kong have yet to confirm whether it is curable, but said the current anti-viral treatment given to patients suffering from atypical pneumonia is effective. Secretary for Health, Welfare and Food Dr. Yeoh He Eng Kiong also said the rate of increase in the number of pneumonia patients appeared to be slowing.

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Difficult times for German travel and tourism

Travel industry experts anticipate no revival of foreign spending by Germans this year, even without an armed conflict in the Middle East . "Even in an optimistic scenario, we are looking for stagnating outlays under these circumstances and because of the low starting level," predicted economist Renate Finke in Dresdner Bank`s yearly analysis of the German travel account. The study said that the murky geopolitical situation, evoked by the words `Iraq` and `oil`, would influence the global economy and conditions for travel in 2003.

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Yaghi to oversee Le M?ridien expansion in Kuwait - Yaghi to oversee Le M?ridien expansion in Kuwait

New general manager of Le M?ridien Kuwait, and country manager appointed to oversee the luxury hotel group's expansion there, is Hannes Yaghi. With 23 years' experience in the hospitality sector, most recently with Starwood, Yaghi has worked in many Middle East cities including Dubai, Muscat, Beirut, Cairo, Sana'a, Manama and Doha, as well as Cyprus and Tashkent.

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D'Estaing talks up Club Med's 'values of tolerance and solidarity'

Club Med has reported an 'encouraging' quarter to end-Jan, with group revenues +0.8% higher at €340m. But it has seen a slowdown in recent weeks and also said that the late booking trend is more acute this year than last. The release issued from Club Med's Paris HQ confirms that Belgium, Switzerland and Italy are its European priorities. Brazil is now seen as a potential outbound market along with China and Korea.

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ASTA creates crisis contingency planning guide for members

The American Society of Travel Agents (ASTA) has developed a crisis contingency planning guide available on ASTAnet to help its members examine their businesses during uncertain times. "With a sluggish economy and the potential of war with Iraq, ASTA wanted to provide its members with the tools to protect their businesses," said ASTA President and CEO Richard M. Copland, CTC. "This plan guides agents through contingency planning and agency communications in a crisis."

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Priceline joins Travelweb, ends Hotels.com deal

Discount Internet travel company Priceline.com Tuesday bought a stake in Travelweb, the online lodging company owned by a group of major hotels, and said it would replace hotel supplier Hotels.com at its lowestfare.com Web site. Norwalk, Connecticut-based Priceline paid $8.5 million in cash to join Marriott International Inc. and other major hotel firms as an equal partner in Travelweb, the companies said.

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IH&RA 40th Annual Congress: "Managing Through Rapidly

Changing Times" 3-7 October 2003 in Cairo, Egypt The International Hotel & Restaurant Association (IH&RA) is pleased to announce that it will host its 40th Annual Congress in Cairo, Egypt, 3-7 October 2003. The Congress includes a four-day educational program featuring a speaker panel of leading hospitality industry professionals and industry analysts who will crack the riddle of "Managing Through Rapidly Changing Times." Congress delegates will also have the opportunity to expand their international business contacts via high-level networking sessions and enjoy an elegant social and sightseeing program in the land of the sphinx and pharaohs.

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March 21, 2003

AH&LA President/CEO Responds to War on Iraq

Dear Friends and Colleagues: Yesterday, the White House officially declared war on Iraq - once again, raising the national terrorism threat level to "code orange-high risk." As such, the entire nation is under a heightened alert status. As the national trade association for the lodging industry, AH&LA is eager to do our part in supporting U.S. officials' recommendation to Americans of "continuing to travel." With that said, we realize that unexpected situations can occur and want to provide you with information that will help you prepare for any crisis........To read the rest of this message,Click Here

Iraq war could hit U.S. hotels' debt payments

A travel slump aggravated by the U.S.-Iraq war could make it harder for some hotels to keep up with debt payments, but the largest companies should be able to cope by trimming costs, analysts said. In the best case -- a short war that achieves its stated aims -- many hotels could make up for a fall in room demand by year end, yet weaker hotels and those in out-of-favor locales could struggle, industry experts said. "The war with Iraq comes just as hotels approach their busy spring season when they build up cash reserves after a slower winter season," rating agency Moody's Investors Service said in a report on Thursday. "The conflict in the Middle East, however short, will likely crimp hotels' operating performance in the near term."

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New destinations "too risky" for hotel investment

The increase in new routes opened up by low cost airlines is not being matched by investment in new hotels according to a report called "No-frills airlines - what's in it for hotels?" by KPMG's travel, leisure and tourism team. Consolidation in the airline industry, and fears that new routes and destinations may be cut means hotels are more likely to benefit from investing in destinations with a growing and sustainable local market not directly dependent on incremental demand driven by the budget airlines.

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Study shows which restaurant table configurations make most money

If you're opening a restaurant or renovating an existing one, a new study from the Cornell University School of Hotel Administration could help you increase revenues simply by purchasing and arranging the right tables. The study, by Professor Gary Thompson, reveals, surprisingly, that midsize (about 200-seat) restaurants, particularly those affiliated with chains that serve large parties of walk-in customers, produce the most revenues with dedicated tables. Such tables are built for a variety of specific party sizes rather than made up of flexible two-seaters pushed together to form larger tables.

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Multi-choice world needs balanced channel management strategy

Never before have companies been able to reach so many customers in so many ways. Today's joined up digital world has multiplied the number of channels open to the travel, tourism and leisure industries. It spans from travel agents and call centres to websites and uses a range of contact devices from PC and PDA to interactive TV. The heady mix of products, services, channels, technology and partners has created a complex basket of strategic and tactical options. A balanced channel management strategy is therefore imperative, calling for a fundamental review of routes to market.

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Property and Chain Web Sites Drive 60% of All Room Night Revenues Booked via Internet in 2003

TravelCLICK reported today that in its 2003 forecast for electronic hotel bookings, direct distribution through individual property or chain Web sites will be 1.5 times the size of the third party Internet marketplace. While third party Web sites such as Priceline, Expedia and Orbitz will remain key sources of room nights, many hoteliers underestimate the importance of direct distribution through their own property or chain Web site.

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Big Holder Buying Rest of Expedia in Stock Deal

Expedia, one of the largest online travel agencies, agreed yesterday to be acquired by its part-owner USA Interactive, nine months after spurning a similar bid. USA is paying $3.3 billion, in its own stock, for the 46 percent of Expedia it does not already own. Talks between the companies picked up quietly in recent months, several people involved in the negotiations said. As war loomed, the companies raced over the last week to complete a deal. The acquisition was approved at an Expedia board meeting that began at 11 p.m. on Tuesday.

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Killer Virus Tracked to Hotel

Doctors said on Wednesday they were homing in on a possible cause and source of a mysterious global outbreak of pneumonia, naming a family of viruses responsible for everyday measles and more exotic diseases such as Nipah virus. Teams in Hong Kong and Germany said they found evidence of a virus known as a paramyxovirus in some of the patients with the illness, called severe acute respiratory syndrome.

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Guests flee Asian hotel linked to 'flumonia'

Panicked guests were checking out of a Hong Kong hotel on Thursday after health officials identified it as the likely starting place of the city's outbreak of a strain of pneumonia that has been blamed for 14 deaths worldwide.Dragging their luggage, more than a dozen frightened guests fled the Metropole Hotel in Kowloon district.
"Some guests have chosen to leave. Guests on that floor (where infections were believed to have occurred) have been moved to other floors," said Kaivan Ng, a manager at the hotel.

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Academy Sofitel judged Australia's best at National Tourism Awards

Academy Sofitel, the highly regarded hospitality training academy of the 5-star Sofitel Melbourne hotel, has been judged Australia's best tourism education and training facility in the 2002/2003 National Tourism Awards. The Academy, which has won the Victorian Tourism Awards for three years running, took the national award against competition which for the first time saw the private and public sector rolled into a single category.

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Switzerland's tourism industry braces for war

"Consumers are holding back," said Hans Peter Nehmer, a spokesman for the Swiss Hotelplan group, one of Europe's biggest tour operators. The expected war in Iraq comes at a bad time for the industry, which has shown remarkable resilience in the face of last year's Bali bombing and the September 11 attacks. The war also comes at a time of growing unease about Switzerland's stagnating economy and rising unemployment. Swiss travellers, it seems, are opting for cheaper holidays or staying at home.

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Decorex International announces HOTEL @ DECOREX

The organisers of Decorex International, the world's best trade show for the interior design industry, announce the launch of a new exhibition within an exhibition? at Decorex International 2003 - Hotel@Decorex. Hotel@Decorex fills a widely acknowledged void in the hospitality market, providing a forum for networking between suppliers of top products and services and the professionals they serve. It grew out of the runaway success of last year?s showcase, Five-Star Contracts, a small section of Decorex aimed at top-end hotel specifiers and purchasers.

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Ray Stone promoted to Senior Vice President - Sales & Marketing, Accor Asia Pacific

Accor has promoted Ray Stone to the position of Senior Vice President Sales & Marketing - Asia Pacific. Previously General Manager Sales & Marketing Australia, New Zealand, South Pacific and Japan, Ray has been given responsibility for the full region to complement Michael Issenberg's recent appointment as Managing Director Asia Pacific.

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March 24, 2003

Never say die!

By Steve Shellum, Publisher/Editor, HOTEL Asia Pacific

How do you cope if you have five outlets to keep running - and few, if any, guests? Trevor Bilney, executive chef of the Bali InterContinental Resort, rose to the challenge with creativity, passion and determination .When guests disappeared almost overnight from the award-winning property on Jimbaran Beach - and every other hotel on the shocked island - Bilney had to act with courage and confidence. To read the full article,Click Here

Thistle hotel group sale lands Orb in fresh row

The Observer - Jersey-based Orb Estates, currently the subject of a Serious Fraud Office investigation, faces further controversy after the sale of its Thistle hotel portfolio to Allen Rankin, a Tynside based multi-millionaire. It has emerged that Rankin is a close business associate of an Orb adviser censured by the Takeover Panel for failing to disclose his links with Orb

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WTO: Official War Statement

By Francesco Frangialli, WTO Secretary-General

At this time, when the Iraq conflict has erupted, I wish to transmit to you the information gathered and the analyses developed over the past months by our Organization, in particular through the work carried out by the Recovery Committee, which our General Assembly established a year and a half ago to face the difficult situation that we were entering at the time, and which has continued until now. Obviously, it is not the purpose of this letter to pass judgment on the political dimension of this conflict - it is not the World Tourism Organization's place to do so. It is our mission, however, to underline whenever necessary tourism's contribution to peace, and conversely, its vulnerability to acts or war and terrorism. Above all, it is our duty to spare no effort in ensuring that world tourism can recover as strongly and as rapidly as possible in the wake of a major shock. For the rest of the statement,Click Here

War exacerbates Hong Kong's woes

Shock: Rugby Sevens in Hong Kong may be axedThe hostilities in the Middle East have added to the already depressing scenario in Hong Kong caused by pneumonia. Hong Kong Hotels Association executive director, Mr James Lu, said the outbreak of war immediately affected hotel bookings, especially from longhaul markets. "There is already a global reduction in travel desire for both business and pleasure by air away from home base," Mr Lu said.

For details,Click Here Young hotel or old hotel? Where is the better salary? Written By: Keith Kefgen & Christopher Mumford HVS International

Does age matter? We live in a society that is increasingly

concerned with age and, in particular, about combating the ageing process. Like people, some hotels age more gracefully than others, some, like the Waldorf Astoria in New Yo rk, grow into legendary grandes dames. With this in mind, we questioned whether there is a disparity between old hotels and new hotels in terms of executive compensation and, beyond that, if an opening hotel commands a premium in compensation. For detailed report, Click Here

Six Continents leads the way with its Corporate Responsibility Programme

The results of Six Continents performance in the Business in the Community's (BITC) 1st Corporate Responsibility Index were announced at the end of last week at a conference at the Millennium Conference Centre, London. This new Index, for the first time, provides a framework for comparing the management processes and performance of a range of companies in different sectors with those of their peers. Six Continents PLC is the first hotel company to join as founder member?. Six Continents PLC was awarded full marks for corporate values, leadership, risk management and policies in the Corporate Strategy section of the Index.

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Shangri-La/Earnings: Surge in 2002 profit despite modest revenue growth

Hong Kong-listed hotel operator Shangri-La Asia Ltd. Friday announced a 58% surge in 2002 net profit to US$93.1 million despite posting only modest revenue growth.

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JJW Hotels & Resorts adds Hotel Pierre, Paris to its expanding portfolio

It was announced that JJW Hotels & Resorts, the hotel group subsidiary of MBI International & Partners had purchased the Hotel Pierre Paris, for the sum of €11M. This hotel will be known as Median Paris Arc de Triomphe.

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Malta: Hoteliers asked to rethink strategies

Hoteliers were asked to think twice before lowering room rates and to safeguard the bottom line. "Depleting rates does no one any good and only hurts the bottom line," Malta Hotels and Restaurants Association president Winston Zahra Jr said yesterday. Speaking to the trade at the InterContinental Hotel, Mr Zahra emphasised that lower rates did not lead to an increase in volumes and statistics confirmed this.

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Dubai hotels hope to bounce back

Hoteliers in Dubai have been prepared for the war in Iraq so they are not too surprised by a slight drop in business. While occupancy levels are not as high as they were this time last year, hotels are confident the market will bounce back quickly. Said Marc Dardenne, general manager, Ritz Carlton Dubai."We are at present 40 per cent occupancy and this time last year we were 85 per cent."

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NZ Tourism looks on bright side

The NZ tourism industry is optimistic that war in Iraq will not lead to a big downturn, as new figures show that 5 per cent more tourists arrived last month. Statistics issued last week showed that 222,200 tourists came to New Zealand in February - up 10,000 on the same month last year. That brought visitor arrivals for the 12 months to February to 2.07 million, a 7 per cent increase on the previous year, Statistics New Zealand said.

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Florida Tourism thriving despite war -- for now

Despite the war in Iraq, it's so far so good for March in Florida where the month is traditionally one of the biggest for the tourist industry. Elsewhere, the industry is nervous about the summer season, but there are pockets of optimism. "We know there is going to be an immediate impact from the war because we've already been feeling the impact of the uncertainty of war," said Cynthia Keefe, spokeswoman for the Travel Industry Association of America.

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March 25, 2003

War in Iraq hits European tourism hard

As America goes to war, Europe's tourism industry is bracing for a blow. Hotels from Paris to Rome to Berlin have already seen a drop in reservations and anticipate a greater slowdown, just as the peak tourism season gets under way. "For tourism, you need peace -- otherwise you have no tourists," said Alain Feutre, head of the Paris-based International Hotel and Restaurant Association. "If the war is a long one, it will be a catastrophe for us."

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Travel Industry Copes With War

Although the war in Iraq is a major disruption for the travel industry, online travel services may have much less to fear than their conventional counterparts. Analysts said Internet travel agencies like Expedia, Travelocity and Orbitz were likely to survive any slump caused by the Iraqi war better than traditional travel businesses, just as they weathered the Sept. 11 attacks more easily.

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Starwood Hotels & Resorts Worldwide, Inc. Withdraws Guidance

Starwood Hotels & Resorts Worldwide, Inc. announced today that it has withdrawn its first quarter and full year 2003 guidance. Starwood offered first quarter and annual guidance in January and could not have anticipated the significant deterioration in business due to the elongated Iraq negotiations and the related geopolitical conditions that worsened over the quarter and culminated recently in armed conflict.The Company said that, given current uncertainties, it will suspend giving guidance until such time that it can more accurately predict the business impact of the war and the impact and timing of an economic recovery.

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AH&LA Multiunit Forum offers enriching internet distribution sessions

Several of today`s most pivotal speakers will discuss electronic distribution channels during the American Hotel & Lodging Association (AH&LA) Multiunit Lodging Operators & Owners Forum, April 27-29, at the Denver Marriott City Center in Denver, Colorado. Conducted in three phases, the conference`s various educational sessions delivers effective Internet distribution strategies.

For details,Click Here Goldman Sachs Sells 31.47% Stake In Thai Dusit Thani GroupGoldman Sachs has sold all its 31.47% stake in Dusit Thani PCL , Thailand's leading hotel and resort chain operator, to a group of investors led by the company's chairwoman and founder, Dusit Thani said Friday.

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Rezidor SAS Announces 14 Park Inn Hotels In Sweden

Rezidor SAS Hospitality announces the introduction of its international, mid-market Park Inn brand in Scandinavia, with the addition of 14 hotels in Sweden, through the signing of a franchise agreement with Software Hotels.
"This deal represents a significant step in the new multi-brand expansion strategy for Rezidor SAS. Our goal is to reach 700 hotels within 10 years under the four brands," says Kurt Ritter, president & CEO for Rezidor SAS Hospitality.

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New York Hotels reaching out to guests

Worried by the war-related falloff in reservations, New York hotels are waiving cancellation policies in hopes that visitors will rebook their trips when the conflict ends, and they're stepping up marketing efforts for stays in late spring and early summer. President George W. Bush's decision to launch the war last week ironically didn't precipitate a wave of cancellations, but only because bookings had already been declining for weeks in the expectation of hostilities. The war, however, has been felt sharply at reservation desks.

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Public Relations for Your Hotel or Destination: Despite war, we all still need a travel reprieve!

Written By: Leora Halpern Lanz & Barbara Wiener HVS International

As we all know, since September, 2001, American leisure and business travel patterns have seen dramatic reductions, and have become very localized and short-termed. As a result, sales, marketing, and public relations activities for hotels, resorts, and destinations have been modified in order to talk to travelers and appeal to their specific travel instincts. The challenge for hotels and area attractions has been, "Do we spend the money to market, even if guests aren't traveling?"

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Canadian Lodging Outlook

HVS in Canada is well recognized for our comprehensive feasibility studies, easy-to-understand hotel appraisals, strata-title hotel appraisals, assistance with management and franchise negotiations, and selective asset management. As our professionals hold both the AACI and the MAI (member of the Appraisal Institute in the United States) designations, we can work for clients (and our reports are accepted) on both sides of the border. To view the Canadian Lodging Outlook,Click Here

March 27, 2003

Lest not forget CRM = Customers Really Matter!

It's now some three years since the NASDAQ reached an all time high of 5,048.62 points; a time when people were filled with euphoria and driven by adrenalin in the hope of becoming an overnight zillionaire by taking their DOT COMS through to IPO. Hotels were full to the brim, often charging astronomical rates for their rooms, and restaurants were selling foie gras and caviar with champagne flowing as though it were the equivalent of a burger and fries with a chocolate shake thrown in for good luck, all this while people discussed exit strategies. What delusions of grandeur we all had… For detailed report,Click Here

Shangri-La wins bid to manage former ANA in Sydney

News has come to hand that Shangri-La Hotels & Resorts has won the much-desired bid for the management contract of the former ANA Hotel in Sydney, and that an announcement is due tomorrow. The former ANA Harbour Grand Hotel Sydney will be formally rebranded as the Shangri-La Hotel, Sydney. "We are delighted to be working with GIC RE, and to have this opportunity to enter the Australian market with such a prominent hotel," said Giovanni Angelini, Shangri-La's chief executive and managing director.

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News @ PATA

DE JONG PRAISES FORTY NATIONS REGISTERED FOR BALI - PATA President and CEO, Mr. Peter de Jong, praised delegates from 40 countries who have registered for PATA Annual Conference, April 13-17 in Bali, Indonesia. He said: "PATA is deeply encouraged by their commitment to the one annual travel event in our region which unites our diverse membership in the name of peace through travel." He added: "PATA's Annual Conference is unique in its ability to attract such broad support from across many cultures. This shows that PATA is a truly international organisation representing a wide range of people in travel." For further information about PATA Annual Conference visitwww.pata.org and click on the Conference link. For the rest of this week's news about PATA,Click Here

AH&LA Provides Extensive Industry Materials In Wake Of National Crisis

The American Hotel & Lodging Association (AH&LA) has established a "National Homeland Security" section on its Web site. This resourceful segment offers up-to-date travel safety and industry resource information. Viawww.ahla.com , Internet browsers can view a variety of pertinent materials including tips from lodging security experts, general guidelines for crisis communications, links to important government-related sites, and much more.

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War crushes hopes of UK hotel industry

The UK hotel market took a sharp turn for the worse in February as the threat of a war with Iraq exacerbated the gloomy economic picture, according to figures published yesterday. Monthly statistics from PKF, the accountants, show that the signs of recovery in the London market during the latter part of 2002 were "swept away" in February as both room rates and occupancy figures went into reverse. The average occupancy in the capital's three, four and five-star hotels fell from 72.4 per cent to 69.4 per cent, while the average achieved room rate fell from Pounds 96.04 to Pounds 94.08. As a result, the rooms yield fell by 6.2 per cent to Pounds 65.29.

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Hong Kong Hotels hard hit

With bookings, occupancies and summer plans for millions of people in a state of flux, the Hong Kong industry can do little but cross its fingers, hold its collective breath - and pray, one veteran agent says. A spokesman for the Hong Kong Tourism Board said: "Since the beginning of this year, presumably because of war concerns, long haul travellers seem to have been adopting a wait-and-see attitude. Short haul has not been so much affected by hostilities and we were not expecting the war to have much impact on intra-regional travel. But the addition of the disease outbreak has obviously changed all that."

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Egypt hotel occupancy severely drops

Several hotels in Egypt slash daily rates to offset dramatic decline of occupancy rate caused by Iraq war scares. The war in Iraq has caused a severe drop in tourism to Egypt, with industry sources reporting Tuesday an average 30 percent hotel occupancy rate, down from a usual spring average of 80 percent. "Almost all Italians, who are our main clients, have left," said the manager of a four-star hotel in the Red Sea resort of Sharm el-Sheikh, on the southern tip of the Sinai peninsula.

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Taiwan hotels fear drawn out war to hurt occupancy rates

Even the most solid performers in Taiwan's lodging industry are being rocked by the turbulence sweeping the Middle East. Taipei's five-star establishments told the Taiwan News yesterday they expected a slight drop in bookings as leisure travelers - jittery over the U.S.-led war on Iraq and the deadly flu-like illness (SARS) that had killed 17 and sickened 456 worldwide - chose to stay at home and delay their trips to Taiwan.

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March 28, 2003

Ultimate Service Awards 2002 recipients announced

The 2002 Ultimate Service Award recipients have been announced. The Award, announced at the International Hotel Investment Forum in Berlin, is the only global awards programme that recognises and rewards service excellence in the hotel industry. The Award covers nine territories and only one hotel is awarded in each category. The territories covered are: Africa, Asia, Europe, Australasia/Pacific, Caribbean/Central America, Europe, Indian subcontinent /Ocean, Middle East, North America and South America.For detailed report and award listing,Click Here

Thistle blocks Orb bid to sell off 37 hotels

Caterer.com - Thistle Hotels will refuse investment group Orb's proposed sale of 37 Thistle-managed properties to Newcastle entrepreneur Allan Rankin until its dispute with Orb is resolved. Jersey-based Orb Estates announced it would sell its Thistle-managed hotels to Rankin, chief executive of Ultimate Leisure Group, last week. Thistle is suing Orb for ?14m outstanding from the ?600m sale of the 37 properties last April. Orb, which disputes the claim, is also the subject of a serious fraud inquiry over other business dealings.

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Zig-zags, U-turns and circles take Banyan Tree to the top

Building the Banyan Tree brand was something that was done more intuitively than with conscious forethought and it was certainly without a checklisted, annually updated business plan. Relating The Banyan Tree Experience at an "Uncommon Practice" forum organised by Interbrand and Forum at the Asian Civilisations Museum in Singapore, chairman KP Ho (pictured) said, "What appears in retrospect to have been a straight and consistent journey towards progress was in reality and upon closer examination, a series of zig zags, U-turns, and even walking around in circles. But there was always a vision which served more as a compass than a road map." For full report,Click Here

Six Continents rejects pubs bid

It was only a matter of time before entrepreneur Hugh Osmond's hostile bid for the whole of Six Continents plc flushed out another bidder. The hotel and pubs company said Thursday, March 27, it has rejected a ?2.8 billion ($4.4 billion) cash bid for its pubs business from an unnamed financial bidder, saying the offer was not "suitably attractive." Six Continents said Thursday that it had received a number of expressions of interest from unnamed private equity firms. The board of Six Continents met with the unnamed financial bidder to evaluate the proposal but said it couldn't recommend it to shareholders. Advisers at Cazenove & Co., Merrill Lynch & Co. and Schroder Salomon Smith Barney agreed with the decision, the company said.

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Hilton Revises First Quarter, Full Year 2003 Guidance

Citing business declines and uncertainties related to "Operation Iraqi Freedom," Hilton Hotels Corporation today revised the first quarter and full year 2003 guidance it provided on January 27, 2003. The company said its first quarter 2003 estimates now anticipate a revenue per available room (RevPAR) decline of approximately 4 percent at its comparable owned hotels, with diluted earnings per share of break-even to $.01. This includes: 1) a pre-tax charge (required by current SEC guidance) of approximately $.03 per share related to the impairment of certain public company equity securities held by the company, and 2) a $.01 benefit from utilization of tax loss carryforwards.

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Hotels revenues tumble amid war

Occupancy, room rates and revenues fall sharply - U.S. hotel room rates and occupancy both declined sharply in the first week of the war on Iraq, confirming fears the conflict is keeping travelers at home, the industry's benchmark survey said on Wednesday Revenue Per Available Room, which reflects prices paid for occupied rooms, fell 8.4 percent from a year ago to $51.76 in the week ending March 22, a survey by industry tracking firm Smith Travel Research showed. The high-end properties in the biggest cities, which are also the biggest money-makers in the sector, did even worse, analysts said.

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Pneumonia Travel Advisory Could Hurt Asian Economies

The World Health Organization said it may issue a much more stringent travel advisory on Asian cities with deadly pneumonia outbreaks. A tougher warning could seriously hurt the Asian economy. World Health Organization officials say international travel does not need to be disrupted to contain the spread of Severe Acute Respiratory Syndrome, known as SARS. But if the disease, which can cause a severe form of pneumonia, continues to spread, the U.N. agency will toughen its warnings. The agency cannot almost all of them in Asia, and more than 15 have died. The worst hit cities are Hong Kong, Singapore and Hanoi.

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London room rates fell 3.7% in Feb

According to latest figures from TRI Hospitality Consulting, the 'slender Improvement' witnessed by the London hotel market in January 2003 faltered last month. Average February room rate at London hotels fell 3.7% year-on-year to ?78.80, while occupancy dropped 1.1 percentage points to 73.9%. Room revenue yield was ?58.24, a decline of 5.1% from February 2002's level of ?61.36. TRI said last month's perfomance was particularly disappointing given that in February 2002 the London market was still suffering the after-effects of the 11 September terrorist attacks.

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ASTA calls for industry unity, consumer support during war in Iraq

The American Society of Travel Agents (ASTA) is calling on all travel industry suppliers to liberalize their cancellation and re-booking fees in light of the coalition war with Iraq. Additionally, ASTA is asking airline carriers to waive their fees for issuing paper-tickets. ASTA President and CEO Richard M. Copland, CTC, said, "As an industry, we understand that traveling at a time of military conflict can be extremely stressful for people, and consumers may feel more comfortable postponing or otherwise changing their plans. Given the seriousness of the situation and the stress that this war will have on an already weakened travel industry, it is our hope that industry leaders will be understanding of Americans` cautions and change their cancellation and refund policies to be more flexible, encouraging travelers to book now.

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3rd Global Travel & Tourism Summit: Speaker Programme Launched

The World Travel and Tourism Council (WTTC) announced the line up of speakers and the agenda for its 3rd Global Summit that will take place in Vilamoura, Portugal over the period of May 15th - 17th. Confirmed speakers include Neil Armstrong, the astronaut, the President and Prime Minister of Portugal (Jorge Sampaio and Jose Manuel Durao Barroso), the Chairmen of American Express (Ken Chenault), Carlson Hospitality Worldwide (Curtis Nelson), Continental Airlines (Gordon Bethune), Iberia (Xabier de Irala), Marriott (Bill Marriott), Rail Europe (Bernard Frelat), Six Continents (Sir Ian Prosser), Starwood Hotels and Resorts (Barry Sternlicht), TUI (Michael Frenzel) and over 30 more top executives of companies of similar stature.

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IH&RA 40th Annual Congress: “Managing Through Rapidly Changing Times” 3-7 October 2003 in Cairo, Egypt

The International Hotel & Restaurant Association (IH&RA) is pleased to announce that it will host its 40th Annual Congress in Cairo, Egypt, 3-7 October 2003. The Congress includes a four-day educational program featuring a speaker panel of leading hospitality industry professionals and industry analysts who will crack the riddle of “Managing Through Rapidly Changing Times.” Congress delegates will also have the opportunity to expand their international business contacts via high-level networking sessions and enjoy an elegant social and sightseeing program in the land of the sphinx and pharaohs.

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Thailand: Tourism worries

Concerns over travel safety during the war in Iraq are causing tourists to cancel holidays in Thailand, depriving the economy of a key source of foreign income. If the hostilities in Iraq are prolonged or lead to an increase in South-east Asian terrorism, the economic impact could be substantial. Furthermore, if an emerging global health scare over a strain of pneumonia linked to Asia is not rapidly contained, and in particular if it results in international travel restrictions, the damage to the Thai tourism industry could be even greater. According to the Tourism Authority of Thailand (TAT), since the start of the war in Iraq around 50,000 visits have been cancelled for April to June, and hotels are experiencing cancellation rates of 5-10%. The TAT estimates revenue lost so far for this period at Bt1.2bn (US$28m).

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African tourism crumbles under Iraqi war

Nairobi - After a week of war in Iraq, the tourism industry in Africa, often the continent's economic mainstay, has been hit by falling reservations and growing concerns about safety. Some countries, however, such as South Africa, hope to capitalise on the current climate, using their geographical distance from the battlefields as a selling point. North Africa has been especially affected by the outbreak of hostilities in the Gulf. In Egypt, for example, hotel occupancy rates have nosedived from the 80 percent usually recorded at this time of year to about 30 percent.

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HORECA, the regional Hospitality and Food Forum will be held in due date this April, despite war climate

Mrs. Jumana Dammous-Salame, the administrative director of Hospitality Services and exclusive organizer of the largest annual hospitality and food forum, confirmed that HORECA would doubtlessly take place from the first until the fourth of April 2003 at BIEL. She further clarified that none of the foreign, Arab or Lebanese exhibitors cancelled any of their bookings for the stands, which, contrarily, recorded a net increase this year. Mrs. Salame delivered this statement in response to journalists who were inquisitive about the current preparations for the event in light of the apprehension and the nervousness the region is witnessing due to the war against Iraq.

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Flu scare spurs sell-off in Hong Kong listed Hotel Groups

Shares in hotel giant Shangri-La Asia plunged 9.64 per cent on growing fears the outbreak of atypical pneumonia is hurting regional tourism. The stock fell 55 HK cents to $ 5.15 despite Friday's announcement full-year net profits had surged 58 per cent to US$ 93.07 million.Hongkong and Shanghai Hotels - owner of The Peninsula, the Kowloon Hotel and the Repulse Bay Complex - yesterday fell 2.08 per cent to $ 3.525. Harbour Centre Development, which runs The Marco Polo Hongkong Hotel, dropped 2.72 per cent to $ 5.35

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