Millennium in the Six Continents lobby
 
The Telegraph  -   Millennium & Copthorne, the hotelier, yesterday said it could be interested in Six Continents' InterContinental hotels chain as its recovery in full-year profits was overshadowed by tough current trading.

Kwek Leng Beng, chairman, said he was "watching" events at Six Continents and added: "I think we could be interested at the right price in the InterContinental." He ruled out any interest in Thistle Hotels, which is also facing a hostile bid.

Millennium posted an 11pc rise in profits to £60.2m, despite a near 5pc fall in turnover to £568m after a cost-cutting drive, including the loss of 500 jobs.

John Wilson, chief executive, warned: "If the war in Iraq takes place there will, inevitably and regrettably, be further cost reductions involving people." He could not say how many jobs among the 12,500 staff were at risk.

Across the group revenue per available room fell from £46.47 to £44.17, though Millennium achieved considerable recovery at its New York hotels with a marketing drive which boosted occupancy by 10 percentage points. This year has got off to a more difficult start, however, with revenue per available room in New York down 9pc and by 7pc in London.

Mr Wilson accused rival hoteliers of "panicking" in the face of the Iraqi conflict and introducing "wholesale rate-cutting". "Things would be better if some people kept their nerve," he said.

Millennium revealed that it was in a legal dispute with its insurers following the closure of its Millennium Hilton hotel in New York, which was damaged in the September 11 terrorist attacks.

While it has received $49.5m under the policy, the insurers have only agreed to pay claims for business interruption and loss of profits for 12 months after the attacks. The hotel is not due to reopen until August.

The full-year dividend was held at 12.5p. The shares fell 2.5 to 196.5p.  

Six Continents stands firm on vote date

The Herald  -  Six Continents, the hotels to pubs chain, stood firm in the face of a £5.5bn hostile bid yesterday, and reiterated its rejection of calls to delay a vote on the planned separation of its hotels and pubs businesses.

The news came as franchisees who run Six Continents' hotels in the US - such as Holiday Inn hotels - threatened to quit the group if the bid by entrepreneur Hugh Osmond succeeds.

The refusal to delay Wednesday's extraordinary meeting to let shareholders vote on the matter will heap pressure on Osmond, who yesterday was holding more meetings with Six Continents' investors.

He needs to persuade 25% of investors to vote against the demerger next week for a chance of success. Advisers close to Osmond said that an announcement detailing early support for his bid could be made today or tomorrow.

Six Continents, which also owns Crowne Plaza hotels, All Bar One pubs and Harvester restaurants, said on Wednesday that delaying the demerger vote could damage its business.

Tim Clarke, Six Continents chief executive, said: "The uncertainty within those businesses which will result from a delay to the EGM risks setting back the considerable progress that they have made since our plans were announced in October."

Under Six Continents' plans, the company will be split into a separate hotels and a pubs business. Shareholders will get £700m. Osmond is also pro-posing a split, to sell off hotels and runs the pubs arm itself. Investors get £1.4bn.

Meanwhile, a body which represents many of the franchisees who run Six Continents' hotels in the US, issued a statement warning that Osmond's bid could damage their businesses and force some franchisees to walk away.

Jay Fishman, the association's chairman, said: "The transaction could result in the company being busted into pieces, brand by brand and likely destroying one of the world's most established and best known hotel brands - Holiday Inn."

Osmond declined to comment on Fishman's remarks. But sources pointed out that he said earlier this week that he did not think franchisees would walk away if his bid was successful. Six Continents' shares closed unchanged at 607.5p.

Owners' Association of Six Continents Hotels Concerned Hostile Take-Over Bid Will Hurt Value of Their Assets

The IAHI, The Owners' Association of Six Continents Hotels Inc., announces today that the IAHI Executive Committee spoke following the release of details on the hostile bid by CMI and believe an offer, substantially as submitted, will likely have a negative impact upon the operation and value of their hotels.

"There are approximately 2,800 franchised hotels in the Six Continents Hotels System of which the IAHI represents 80 percent of those hotels," said Jay Fishman, Chairman, IAHI Board of Directors. "From what we read and hear, the transaction as contemplated could result in the company being busted into pieces ... brand by brand ... and likely destroying one of the world's most established and best known hotel brands -- Holiday Inn. Our members and owners are major stakeholders in this game. With approximately 300 hotels up for license renewal every year, it is very important that our hotels are affiliated with a professional, high quality hotel company that is committed to the long-term success of the brands. Without that commitment it is likely that many franchisees will look to competitive brands upon renewal and may even write a check for liquidated damages to leave the system early."

Fishman further points out that owners' revenues, operations and profits could be jeopardized by a break-up of the hotel group which will destroy the synergies of the Priority Club Rewards program (with approximately 15 million members), a common reservation system, the equity of the internet sites, preferred vendor relationships, strategic alliances and more. In addition, CMI's proposed financing could have a negative affect on the quality and brand initiatives that existing management is currently undertaking.

"We have significant faith in the new management team at Six Continents and what will become the InterContinental Hotels Group. The IAHI has spent considerable time with Richard North and Steve Porter. They have the passion, experience and vision to lead the company forward in the future. One of the reasons the IAHI supports the de-merger is that this new management team will now be focused solely on our industry ... running hotels. This is further evidenced by the additional key management changes that the company has made in the past nine months."

Finally, Fishman added, "We are in a most difficult time in the hotel industry and must stay focused on the business at hand if we are to move these brands forward."

About the IAHI:

In 1955, Kemmons Wilson established an organization of Holiday Inn Franchisees and representatives of his company charged with reviewing changes to the license agreement in the areas of standards, rules of operations, marketing assessments, reservation assessments and many other issues relevant to the Holiday Inn Hotel system. In 1956, the National Association of Holiday Inns was written into all license agreements indicating that every franchisee / licensee was eligible to be an active member of the association.

The IAHI represents its membership in working together with Six Continents Hotels for the purpose of maintaining the highest professional hospitality standards for its brands. Our members own and operate Six Continents Hotels' brands (to include Holiday Inn Express, Holiday Inn, Holiday Inn SunSpree Resorts, Holiday Inn Garden Court, Holiday Inn Select, Crowne Plaza Hotels, Crowne Plaza Resorts, and Staybridge Suites hotels).

Hotels Struggle with World's   Toughest Challenge

Deloitte and Touche Travel Tourism and Leisure - Executive Report 
March 2003

In this article, we focus on the hotel sector and assess how global operators are still counting the cost, using performance information from Deloitte and Touche’s HotelBenchmark Survey widely recognised as containing the most comprehensive and authoritative industry data outside North America. 

To ensure direct comparability of year-on-year data, we have analysed the performance of a consistent sample of hotels representing more than 800,000 rooms. Our analysis has focused on Moving Annual Totals (also known as Rolling 12s) a statistical technique that illustrates trends over a set period of time. We look at revPAR (room revenue per available room) and its constituent components occupancy and average rate. 

Following the millennium year, with its high demand for entertainment and accommodation, 2001 was always going to be something of a challenge. But even suffering from a holiday hangover, no one could have seen how badly things would turn out. 

In the year 2000, The World Tourism Organisation estimated that international tourism grew by 45 million arrivals, reaching unprecedented levels. Then the global economic recession struck, with falling stock prices and a great deal of market gloom. This was exacerbated in the UK with the outbreak of foot and mouth disease, which had catastrophic effects on tourism. So, although the events of 9/11 are widely attributed for the industry’s weak performance in 2001, in reality the pressure was being felt a lot earlier. Global revPARs, when measured in US dollars, began to drop in April 2001. (See Chart A). 

During summer 2001, hotel revPARs remained under pressure. There was a slight recovery in August, which gave the industry hope that the key conference months – and the most profitable – of September and October would be better than initially forecast. Then, the awful events of 9/11 happened, leading to double-digit revPAR declines. 

Not surprisingly, in September it was the US market that was most affected with revPAR falling 23% compared to September 2000.Asia Pacific reported its worst declines in September too, with a revPAR fall of 19% compared to the previous year. Hotels in Europe and the Middle East experienced a time lag, with the deepest reversals reported in October and November. Within Europe, revPAR fell 14% in October before recovering marginally in November and falling back again 13% in December. With the prospect of retaliation against the Al Qaeda in Afghanistan, demand for hotels in the Middle East faltered, with revPAR declines of 35% and 37% reported in October and November respectively. 

Many analysts predicted that the industry would experience a strong, sharp V-shaped recovery, with performance picking up by mid-2002. What actually happened was that encouraging signs in the first quarter were brought to a halt by the corporate accounting scandals that rocked the US and then other parts of the world, leading to stock market volatility and a plunge in business confidence. 

While corporate governance issues continue to make the news, and the global economy continues to splutter, the hotel industry is still suffering. A recovery is not now expected until next year, although the last quarter of 2002 should look quite good when compared to the same period the year before. 

Analysing the industry’s rolling twelve-month performance one can see this. This technique removes any seasonal bias from the equation and reveals that all parts of the World are still trading at a revPAR deficit to Jan 2000 levels. (See Chart B). 

The deficit is greatest in the Middle East (-14%), due mainly to a significant fall in demand, (occupancy levels are down nearly 10% over January 2000 levels). The revPAR deficit is 9% in Europe and 5% in both Asia Pacific and the US. Across the world it appears, with the exception of the US, as though revPAR declines may have bottomed out and we anticipate a continual improvement in these markets over the next few months. 

Occupancy and average rate 

On average since January 2000, both the US and Middle East have averaged revPAR levels of around US$53, compared to US$63 for Asia Pacific and US$73 for Europe. This trend is mirrored in the regions’ occupancy performance, where the US and Middle East are trading at average occupancy levels of 64% compared to 70% for Asia Pacific and Europe. However, within Europe and Asia Pacific there are marked variances in different countries’ occupancy levels, with UK hotels, for instance, averaging occupancy levels of 75%, compared to just 65% in Germany. Occupancy levels remain on a slight downward path, but the decline in average room rates appears to have bottomed out in Asia Pacific and Europe, with a gradual return to growth. (See Chart C). 

While average room rates remain under pressure in both the Middle East and US, the US is reporting average room rates above January 2000 levels, up 0.9%. One of the reasons is probably the higher proportion of budget accommodation in the US.This sector has typically been more resilient than upper and mid-scale hotels. 

Segmentation – rest of Europe

We have analysed performance in both the UK and the rest of Europe by segmenting hotels into four different categories – luxury, first-class, mid-market and economy. These are based on Deloitte and Touche’s unique classification scheme, in which global brands are allocated a grading reflecting its target consumer. 

As Chart D illustrates, adopting a rolling twelve-month basis, the luxury, first class and mid-market sectors across continental Europe have all experienced significant occupancy declines since 9/11. In the case of first class and mid-market hotels this decline actually started at the beginning of 2001, caused mainly by poor economic conditions that led companies to cut their travel budgets, but the rate of decline was exacerbated by the aftermath of 9/11. 

Before 9/11, luxury hotels had managed to maintain their occupancy levels, but they suffered the most after the terrorist attacks, when occupancy levels fell rapidly from 70% to 62%, as consumer travel patterns altered. 

The economy sector, however, has remained virtually unaffected by events and its occupancy levels remain unchanged at around 62%. This is mainly because this type of hotel is generally located in suburban areas or alongside motorways, and attracts domestic demand. As people opt to stay closer to home, and travel by road or rail rather than plane, these hotels have remained insulated from global events. 

This sector has also managed to grow average room rates. Across continental Europe, rolling 12-average room rates between January 2000 and September 2002, when measured in euros, have improved 12.4%, with the economy sector achieving a 12% improvement. By contrast, the luxury sector, which trades at average room rates over 100% greater than the market average, has seen room rate growth of 30.6% between January 2000 and September 2002. Economy hotels have combined average room rate growth with sustained occupancy to experience revPAR increases of 12.8%.

Segmentation analysis – UK

Analysis of the UK hotel market confirms the resilience of the economy sector. Table 1 clearly indicates that on a rolling 12-month basis the UK economy sector has been unaffected by both the aftermath of 9/11 and the weakened economy, as occupancy levels have improved 4.7% between January 2000 and September 2002. Average room rates have moved ahead 2.5% during the same period, resulting in a revPAR increase of 7.3%.

Luxury hotels, primarily located in London, have not fared so well, with occupancy levels falling 15.3%, as shown in Chart E. Since March 2002, the rate of decline seems to have levelled off and there are real signs that occupancy levels for this sector may have reached the bottom of the cycle.

One response to the rapid drop in demand for luxury hotels would have been deep price discounts to try and bolster demand, but this didn’t happen. Consequently, hotels in this sector are now trading at a 0.1% average room rate premium over January 2000 levels. It’s clear that luxury hotels have suffered as business customers and consumers have traded down to lower grade accommodation, and this often happens when the going gets tough. It’s the luxury sector that tends to feel the pain first, but as conditions improve, this is usually the sector to lead the hotel industry’s recovery. 

Segmentation analysis – gateway and provincial cities

Industry pundits predicted that another effect of 9/11 would be increased pressure on the performance of hotels located in gateway cities, as they are more reliant on international visitors. This view was given weight by a drop in international air travel, with consumers choosing to stay closer to home and opting for intra-regional travel instead. To check this out, we examined the performance of selected gateway cities against the performance of the rest of their country.

In the UK we compared the performance of London to regional UK; in Germany, regional Germany has been compared to Frankfurt; in Spain we compared regional performance with Barcelona and Madrid; and in Italy we looked at regional Italy compared to Rome and Milan (see Table 2).

All the markets, whether gateway city or provincial cities, were typically experiencing positive trading conditions during 2000. We limited the analysis to the percentage change in occupancy, average room rate and revPAR between January 2001 and September 2002 on a rolling 12-month basis.

The results reveal that gateway cities – with the exception of Italian cities – suffered more than the regions in terms of percentage change in revPAR. In general, all primary cities had occupancy declines almost twice that of the provincial cities, apart from London, where the decline was three times that of the regions. The picture for average rates is quite different. In Frankfurt, average room rates grew three times faster than the rest of Germany; hotels in Milan and Rome recorded a 100% rate premium over the Italian provincial hotels, whereas in Spain, Madrid hotels fared roughly the same as provincial hotels.

London hotels have been hit hard, with average rates suffering a six-fold decline compared to regional UK. London average room rates are now 13.9% below their November 2000 high and are still falling. As a result, London revPAR is still some 22.5% off the high and there is no sign of and end to the misery, although the rate of decline does appear to be slowing.

Conclusion

The global picture, then, is of a hotel industry struggling with tough trading conditions. The luxury end of the market and hotels in gateway cities are bearing the brunt. A ray of sunshine can be seen breaking through the clouds and markets are generally thought to have reached the bottom of the cycle. This last quarter of 2002 should appear fairly positive –especially when compared to the dreadful performance of the last quarter for the previous year. Despite this, we don’t expect hotel occupancy to return to 2000 levels until 2003, and it will be longer still for average room rates to see any substantial growth. This, of course, assumes that a diplomatic resolution can be found to the conflict with Iraq. A war in the region would certainly hold back recovery across the industry, with the most devastating consequences for the Middle East

ITB opens tomorrow with more exhibitors from the Middle East and Asia

 ITB Berlin 2003 - the world's biggest travel trade show, which opens tomorrow, will break new ground if there is no war in the Middle East,.

According to ITB organisers, Messe Berlin, experts predict that demand for travel will remain high in 2003. Destinations considered "safe" should enjoy vigorous growth. Both demographically and economically the Pacific Asia region is experiencing rapid growth, which in turn is driving the global tourism industry.

Orient-Express Hotels Reports 2002 Results 

/PRNewswire-/ -- Orient-Express Hotels Ltd. owner-operator of 41 luxury hotels, tourist train and river cruise properties in 17 countries, today announced its results for the quarter and year ended December 31, 2002. For the quarter, net earnings were $4.2 million ($0.14 per common share) compared with $3 million ($0.10 per common share) for the fourth quarter of 2001. Revenue was up 25% quarter to quarter, from $59 million to $73 million.

For the year ended December 31, 2002 net earnings were $25.3 million ($0.82 per common share) compared with $29.9 million ($0.97 per common share) in the year ended December 31, 2001. Revenue for 2002 was up 11% from 2001, from $261 million to $289 million.

Mr. James B. Sherwood, Chairman, said that fourth quarter earnings were in line with "street expectations". He indicated that the luxury hotel industry was adversely impacted in early 2002 by the September 11, 2001 terrorist attacks and towards the end of the year by the Iraqi situation. Poor weather in Europe in the summer, mediocre stock market performance in the U.S. and U.K., a weak economy in Germany and strengthening of the Euro against the U.S. dollar were other temporary factors which prevented the company from achieving improved results.

"The company made three excellent acquisitions in 2002, European tourist trains had an outstanding year and South African hotels achieved greatly improved results. Major works at the Copacabana Palace Hotel and the Inn at Perry Cabin contributed to a combined reduction in EBITDA at these properties but these works are now complete and we expect improved results there in 2003."

"The company has traditionally insured its properties centrally and was faced with an unusually large increase in insurance costs at mid-year, causing such costs to rise in the second half of the year by $1 million over the prior year period. The company's insurance coverage has now been changed entirely, from a centralized system to a regional one, effective January, 2003, at a savings of $2 million p.a."

"We are still left with a situation where a proportion of international travel will be deterred as long as the uncertainties over Iraq persist. Clearly, this will adversely impact results in the early months of 2003. Our main earnings period is May through October so we hope Iraq will be behind us before it starts".

"The company continues actively to negotiate the acquisition of additional properties and hopes to make an announcement in this respect before long," he concluded.

Simon Sherwood, President, said that same store RevPAR was up 6% in the fourth quarter of 2002 compared with the year earlier period. For the year as a whole, RevPAR was down 2%. The progression of RevPAR change in 2002 was down 12% in the first quarter, down 8% in the second quarter, up 5% in the third quarter and up 6% in the fourth quarter.

Same store RevPAR in dollar terms was $148 in the fourth quarter of 2002 compared with $140 in the year earlier period. For the year 2002 RevPAR in dollars was $166 vs. $170 in the prior year.

He said that while works are proceeding satisfactorily at La Cabana in Buenos Aires, and a "soft opening" is now planned for August. Unemployment in Argentina is rapidly declining, the peso has strengthened, exports have risen and tourist arrivals have increased.

He said that Southern Africa, South and Central America were perceived as "safe" travel destinations of exceptional good value and the company has a strong position in these markets.

The fourth quarter and full year's 2002 results can be summarized as follows:

Owned European hotels. For the quarter, EBITDA was $1.7 million compared with $1 million in the year earlier period. For the year EBITDA was $29.2 million compared with $26.9 million in 2001. The main adverse deviations were the Hotel Cipriani which suffered a loss of U.S. visitors and the Lapa Palace in Lisbon which had less business traveller arrivals. The La Residencia and Le Manoir acquisitions accounted for the improvement in European EBITDA.

Owned North American hotels. EBITDA for the quarter was $2.4 million vs. $3 million and for the year EBITDA was $11.1 million vs. $14.6 million. La Samanna was badly affected by September 11th which was just in advance of its peak season. The Inn at Perry Cabin was closed for a large part of the year and New Orleans had a soft market which impacted results of the Windsor Court.

Owned Southern Africa hotels. EBITDA for the quarter was $1.9 million vs. $1.3 million while EBITDA for the year was $4.3 million vs. $3.2 million. Both the Mount Nelson in Cape Town and the Westcliff in Johannesburg showed marked improvement while Orient-Express Safaris in Botswana were down due to less arrivals from the U.S.

Owned South American hotels. EBITDA for the quarter was $1.3 million vs. $2.1 million and for the year was $7.1 million vs. $8.3 million. The reduction was due to devaluation of the Brazilian Real and a large part of the Copacabana Palace Hotel's room stock being off line for refurbishment. The Brazilian elections depressed business travel.

Owned South Pacific hotels. EBITDA for the quarter was $0.3 million vs. $0.4 million and for the year was $1.3 million vs. $3.3 million. Forest fires in Sydney and major refurbishment at Lilianfels in the Blue Mountains west of Sydney caused a significant decline in results.

Management and part ownership interests. EBITDA for the quarter was $3.5 million vs. $2.8 million and for the year was $12.4 million vs. $10.9 million. Charleston Place largely accounted for the improvement.

Restaurants. EBITDA for the quarter was $2.1 million vs. $1.9 million and for the year was $3.8 million vs. $4 million. The small decline was due to the company's 50% interest in the Petit Blanc 4 restaurant chain in the U.K. which was only acquired in early 2002. Steps have been taken to turn this business around in the current year.

Tourist trains and river cruising. EBITDA for the quarter was $2.9 million vs. $1.4 million and for the year was $8.3 million vs. $7.3 million. The Venice Simplon-Orient-Express accounted for the increase.

Simon Sherwood concluded his remarks by saying that the company's recent investments in its properties should permit significant profitability increase when combined with savings such as lower insurance costs. The company has budgeted higher profits in 2003 over 2002 but he said Iraq and terrorist fears were unpredictable factors which could alter results.

HSMAI 2003 Calendar Of Events 

The Hospitality Sales & Marketing Association International (HSMAI) presents a comprehensive line-up of industry events and programs throughout 2003, delivering educational sessions as well as business-to-business forums for buyers and suppliers of hospitality, travel and tourism.

“From cutting-edge educational sessions, on-line learning and executive think tanks featuring expert speakers, to a full program of regional meetings, trade shows and networking opportunities, HSMAI events are invaluable for sales and marketing professionals looking to hone their skills and stay abreast of industry changes and trends,” states Robert A. Gilbert, CHME, CHA, president and CEO of HSMAI.

HSMAI/NYU Strategy Conference
Sept. 25, 2003
New York City
HSMAI and NYU will organize a special HSMAI Executive THINK session designed to present a state of the industry and produce immediate solutions to the problems and issues facing the hospitality, travel and tourism industry. The full-day session features keynote speakers, panel discussion and break-out sessions focusing on a variety of timely industry issues and marketing solutions.

HSMAI 75th Anniversary Gala Event
Sept. 25, 2003
New York City
HSMAI is celebrating its 75th Anniversary with a gala dinner honoring industry celebrities and association leaders of the past and present, as well as publishing a book that will chart the course of HSMAI and the industry back to 1927. The gala dinner and commemorative book are sponsored by the HSMAI Foundation, which makes contributions to the book and dinner sponsorships a tax-deductible expense (including a portion of the dinner price).

eConference Series
HSMAI, in partnership with HSA International, presents an extensive series of educational and interactive eConferences designed to help sales and marketing staff on all levels of expertise to hone their skills in a convenient and easy web-based format. eConference programs feature a range of industry experts on topics covering four tracks: Sales Strategies and Tactics; Sales and Marketing Management; E-Commerce; and Revenue Management. To register, call (877) 432-7301 or go online at www.hsmai.org/events.

A sampling of upcoming scheduled conferences are:

- Thursday, March 20: "Redefining Group Business in the Hospitality Industry: Tapping into the Special Events $100 Billion Niche Market"
Nelson Clark, president, Beverly Clark Enterprises

- Thursday, March 27: "A Meeting Planner’s Perspective"
Chris O'Donnell, president, CJO Group

- Thursday, April 3: "Building Instant Prospect Rapport via NLP”
Ed Iannarella, president, Stonehenge Consulting

- Friday, April 11: "The Who, Where, What and Whys of Prospecting"
Dr. Judy Siguaw, professor, Cornell University

- Thursday, April 17: “Negotiating to your Best Advantage”
Howard Feiertag, Virginia Tech

- Thursday, May 1: "Marketing for GMs"
Barb Taylor Carpender, president, Taylored Training

HSMAI/Leadership Synergies: Strategic Account Management Seminars
Sales professionals will find a wealth of training resources dedicated to Strategic Account Management as part of a joint venture between HSMAI and sales and leadership performance-improvement company Leadership Synergies, LLC. Throughout 2003, a series of innovative skill development courses will be held nationwide specifically for national account managers:

· Washington, DC: April 23
· San Diego, CA: May 30
· San Francisco, CA: August 7
· Orlando, FL: September 17
· Chicago, IL: October 10
· Washington, DC: November 19
For more information on these seminars, call (703) 610-9024 or log-on to www.hsmai.org. For more information on Leadership Synergies, visit www.leadershipsynergies.com or call (301) 494-0282.

HSMAI’s Affordable Meetings®
This show provides meeting planners with free educational workshops on topics related to affordable meeting planning as well as the chance to liaise with a variety of suppliers from hotels and resorts to CVBs, destination management companies, airlines, etc.

April 2-3, 2003
HSMAI’s Affordable Meetings® Mid-America
Chicago’s Navy Pier, Chicago, IL

June 11-12, 2003
HSMAI’s Affordable Meetings® West
San Jose McEnery Convention Center, San Jose, CA

Sept. 3-4, 2003
HSMAI’s Affordable Meetings® National
Washington, DC Convention Center

Contact: HSMAI’s Affordable Meetings®
c/o George Little Management (GLM), Ten Bank Street, White Plains, NY 10606-1954
Beth Petersen, show manager, (914) 421-3377; Fax (914) 948-2918
E-mail: beth_petersen@glmshows.com; www.affordablemeetings.com

HSMAI Meetings Quest
Meetings Quest is a one-day show featuring educational sessions, a reception and luncheon with speaker(s), and an afternoon trade show providing meeting planners with one-on-one visits with suppliers.
· St. Louis - Sept. 9, 2003 - Millennium Hotel
· Boston – Sept. 30, 2003 - Sheraton Boston Hotel
· Atlanta – Oct. 7, 2003 - Hyatt Regency Atlanta
· Chicago – Oct. 30, 2003 - Holiday Inn O'Hare
· Minneapolis - Oct. 23, 2003 - Millennium Hotel
· Dallas - Nov. 6, 2003 - Hotel InterContinental Dallas
· Washington, DC - Nov. 25, 2003 - Hilton Washington & Towers
· Anaheim - Dec. 11, 2003 – Paradise Pier

Contact: HSMAI Meetings Quest
c/o JTDunn Enterprises, 513 Commerce Drive, Upper Marlboro, MD 20774
(301) 249-4600, E-mail: meetingsquest@jtdunninc.com; www.meetingsquest.com

HSMAI European Conference
Oct. 15-17, 2003
Stockholm, Sweden
This European Congress features leading speakers who address cutting-edge issues facing the hospitality industry in the sales and marketing disciplines. The conference is designed to foster lasting relationships and build bridges of communication between countries, cultures and among industry professionals.

For more information, contact: HSMAI Division Europe; (011) 47 22 41 50 70; Fax (011) 47 22 41 50 71; email: ih@hsmai.no


HSMAI is an organization of sales and marketing professionals representing all segments of the hospitality industry. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry, while operating as a leading voice for both hospitality and sales and marketing management disciplines. Founded in 1927, HSMAI is an individual membership organization comprising nearly 7,000 members from 35 countries and 60 chapters worldwide.

Marriott UK  ‘outperforms’ 4-star sector in second half

e-Tid.com  -  Whitbread, exclusive operator of the Marriott franchise in the UK, has reported that the brand has outperformed the four-star sector in the second half of its year which run to end-Feb.

In a pre-close trading statement, Whitbread reported a ‘significant revPAR premium’ at Marriott, thanks in part to the post-11 efficiency measures.

Like-for-like sales growth in the first half was 1.7% short of last time, with the shortfall improving to 0.4% for the 51 weeks to Feb22.

Travel Inn, created and wholly-owned by Whitbread, turned in an ‘exceptional’ performance, despite a slight fall off in growth over the second-half. After 26 weeks like-for-like growth was 6.7% ahead – by Feb22 this has dropped to 6%.
Elsewhere in the business, David Lloyd Leisure improved year-on-year retention. January, a critical month for the gym sector, was well up on last year.

Plans to sell 51 restaurants from its Beefeater chain are ‘progressing well.’ The business digest column in today’s Times reports that a £50m sale will be tied up and announced within weeks.

IndeCorp Corporation Announces Departure of President and CEO, Peter Cass

/PRNewswire/ -- Peter Aeby, Chairman of the Board of IndeCorp Corporation, which owns and operates three brands of independent hotels located on five continents, Preferred Hotels(R) & Resorts Worldwide, Summit Hotels & Resorts and Sterling Hotels & Resorts, announced today that Peter Cass has left the organization as President and CEO of the company, effective immediately. Mr. Aeby said that the decision was reached mutually and made in the best interest of the corporation. Mr. Aeby and Board Member Onno Poortier will jointly oversee the corporation until a successor is named. The current Managing Directors will continue to handle the direction of each of the individual brands, of which the day-to-day operations will remain unchanged.

"We would like to thank Mr. Cass for his vision and dedication to the organization for the past nine years," said Aeby. "Peter Cass was responsible for growing our company in many significant ways through his leadership and vision. Going forward it is our intention to strike a balance between strategic vision and the ongoing business needs of the many fine hotels we represent."

"I have enjoyed my nine years at IndeCorp and Preferred and I am pleased to have been a part of the growth and development of the organization," said Mr. Cass.

About IndeCorp

IndeCorp, The Independent Hotel Corporation, is the protector of independent hotels and resorts, providing them with the increased competitive positioning needed to survive and thrive against chains in the global marketplace, while preserving the distinctive qualities and rich diversity that appeal to today's discerning travelers. Headquartered in Chicago, IndeCorp is a privately held, for-profit, shareholder-owned company with sales offices in seven countries.

IndeCorp's brand subsidiaries are composed of more than 300 distinctive luxury independent hotels and resorts in 51 countries and include Preferred Hotels & Resorts Worldwide, Sterling Hotels & Resorts, Summit Hotels & Resorts, and The Conference Collection, which is the first independent hospitality brand dedicated to serving the specialized needs of meeting planners. The increased resources from multiple brands enables IndeCorp to provide their brands of independent hotels and resorts with expanded services in such areas as sales and marketing, quality assurance, e-commerce, customer relationship management and loyalty programs.

Source: IndeCorp Corporation

Dorchester Group buys Starwood Milan hotel for €275m

e-Tid.com  - Starwood has sold its Hotel Principe di Savoia in Milan to the Dorchester Group for €275m.

The hotel is part of Starwood’s CIGA portfolio, its upmarket properties which it has been trying to sell, officially, since the start of 2002. Originally it wanted to sell the 25 units as a bundle but decided to listen to individual offers.

Dorchester Group, the London-based hotel and management company wholly owned by the Brunei Investment Agency, will assume full management of the 404-room property when the deal completes at the end of June.

Dorchester Group owns and operates the Dorchester in London, The Beverley Hills Hotel in Los Angeles and the Maerice in Paris. In the French capital it also runs the Plaza Athenee under a management contract.

Its director of operations Ricci Obertelli said the Principe de Savoia ‘is a perfect addition to our small collection of outstanding hotels'.

Starwood still has a presence in Milan with its Diana Majestic and Westin Palace.

Sterling Hotels & Resorts Announces Management Changes and New Services

Chicago-based IndeCorp Corporation, the independent hotels corporation that owns Sterling Hotels & Resorts, Preferred Hotels & Resorts and Summit Hotels & Resorts, announces new management changes and new services to its Sterling Hotels and Resorts brand. 

Bruno Maini, formerly Vice President of Worldwide Development for IndeCorp, as been promoted to Sterling Hotels & Resorts’ Managing Director.  Maini’s appointment comes along with implementation of a new sales representation brand model for Sterling. The new Sterling business service model is based on a set of reservation, distribution, sales and marketing services that combine traditional sales representation with new reservations, distribution, and customer communications technologies called IndeCorp AdvantageSP^™.  This is not only a transition at the helm of management, but also in Sterling’s overall business approach.

Sterling headquarters will move to London, central to the rapidly expanding European market.

Bruno Maini’s career in the hospitality industry spans over 30 years, during which time he has worked in senior management roles with several global companies such as Intercontinental Hotels, Utell, Supranational and Concorde Hotels. Maini has extensive experience in the representation services and was instrumental in building the Summit brand since its inception almost 12 years ago.  He is fluent in several languages and is well known to many of the IndeCorp travel partners around the globe.

Bruno Maini will be based in the Sterling Hotels & Resorts office in Brentford, London, and will report directly to the Board of IndeCorp, Sterling’s parent company.  This management transition will not affect the role and current relationship that Sterling’s Gloria Nowotarski, Assistant Manager, Administration and Communications, provides to Sterling members in North America.

IndeCorp added: “We have given Bruno Maini the task to develop Sterling Hotels & Resorts into a strong international sales representation brand providing IndeCorp’s new RevenueASP^™, RateASP^™ and AccessASP^™ corporate sales services to “first class” and “superior class” hotels around the globe at a time of great changes in our industry. Hotel owners and operators have realized that they can obtain global distribution, increase their competitive positioning, and maintain their independence; Sterling is exactly the type of organization they can join in order to compete with the big chains, in a very cost effective way. Maini’s experience in this field, supported by IndeCorp, will serve Sterling members well as they move forward with new sales and marketing initiatives and expansion of the portfolio.”

Bruno Maini added: “I look forward with great enthusiasm to this new challenge of developing the Sterling brand and establishing it as a world leader for first class independent hotels.  I will continue to work with hotel owners and their management to ensure they maximise the use of IndeCorp’s new distribution marketing technology which is now available to them and receive ever increasing volumes of reservations through our full service systems.”

About Sterling Hotels & Resorts

Sterling Hotels & Resorts is a full-service reservations and representation organization offering sales and marketing services to First Class and Superior Class independent hotels worldwide. Sterling Hotels was founded in 1989 as a representation service company and in 1991 added a GDS connection under the WR code.  Since 1998 it has established itself as a global brand designed for First Class and Superior Class hotels and resorts that are ‘Independent’ ‘Individual’ and ‘Unique.’  Sterling Hotels & Resorts is a subsidiary of IndeCorp, the Independent Hotel Corporation, also owner and manager of two consumer hotel brands, Preferred Hotels & Resorts and Summit Hotels & Resorts.  IndeCorp Corporation was formed to help independent hotels compete against the major hotel chains, corporation and franchises.

Golden Tulip Expands Via Joint Venture In Brazil 

Golden Tulip Hotels, Inns & Resorts is proud to announce its intent to enter into a joint venture with existing Brazilian master franchisee Chambertin Hoteis Ltd with the objective to grow the current hotel portfolio throughout Brazil, Chile, Argentina and Uruguay to reach 50 hotels by the year 2007.

The current portfolio counts 11 hotels in Brazil, of which the contracts of six new hotels were signed during the recent visit of Hans Kennedie (Managing Director) and Rachna Taneja (Strategic Development Director) to Brazil. Two further hotels are scheduled to be opened during the course of 2003.

Golden Tulip is now active in Sao Paolo, Rio de Janeiro and the north-east in the cities Fortaleza (2 hotels), Recife and Natal (both 1 hotel).

Golden Tulip entered Brazil in 1999 with the first property managed by Chambertin, the Golden Tulip Paulista Plaza in Sao Paulo Brazil.

As per 1st February 2003, Golden Tulip has appointed two specialists to support the development of the brand. Ricardo Senn joins Golden Tulip as the regional director for South America bringing along 10 years of experience with Utell International, one of Golden Tulip’s suppliers of reservation business. Furthermore, a part time public relations manager has been appointed with the aim to promote the hotels and the brand towards the international businesses and communities in Brazil. In addition to the hotels in Brazil, Golden Tulip currently franchises one hotel in Santiago de Chile, Chile and one hotel in Buenos Aires, Argentina.

“All hotels represent perfect examples of what Golden Tulip and Tulip Inn symbolise, international standards & local flavours,” states Hans Kennedie, chief executive officer and managing director of Golden Tulip. “By entering into a joint venture with Chambertin, we aim to intensify Golden Tulip’s position in the market, which includes investing additional resources,” continues Kennedie. “By increasing our involvement, we aim to boost the developments so to achieve our overall mission of becoming one of the leading chains in the markets we operate in. The appointments of our public relations manager and Ricardo will provide valuable additions to the operation.”

Golden Tulip Hotels, Inns & Resorts is a privately owned franchise company with its head office based in Amersfoort, the Netherlands  

Chinese Tourists Bring Vitality to German Market

When the first 215 Chinese tourists in four groups returned from Germany last week, they found their luggage 50 percent heavier than when they left. In the 10-day trip, the tourists not only visited famous cities such as Berlin, Munich and Heidelberg, but also spent over 10,000 euros buying German leather, sports wear and other items. They had paid 10,000 yuan (1,250 US dollars) on average for the trip. Wang Yanguang, an official with China International Travel Service, believed Chinese tourists had added vitality to German tourism development.

Beijing insurance agent Wei Pingbo, who had learned a few German sentences, realized his dream of traveling to Europe and brought back a full suitcase. "Photos and souvenirs help me recall the beautiful memory of the trip. I would also like to bring gifts for colleagues and relatives," he said. After making several trips to the tourism destinations in neighboring countries and regions, more and more Chinese are now keen to see distant parts of Europe. As the first country to gained Authorized Destination Status ( ADS) in the European Union, Germany's promotions in China have been paying off. The German National Tourism Board (GNTB) had carried out promotional activities in Beijing, Shanghai and Guangzhou as well as participating in the annual China International Tourism Mart (CITM).

Ursula Schorcher, chairman of the GNTB, often leads delegations to China. "We're devoted to promoting cultural, city and exhibition tours. We've also found the Chinese have a great interest in learning German, so we will prepare for language tours, " she said. The GNTB is aware of the potential of inbound Chinese tourists, hoping the number would rank third in five years only after the United States and Japan. In the first 10 months of 2002, the overnight stays of Chinese people in Germany increased 12 percent compared with the previous year. From 1994 to 2001, the number of Chinese people visiting Germany rose 78 percent. Xu Shengli, chief representative of GNTB China, predicted some 20,000 Chinese people would visit Germany this year, with total overnights stays exceeding 600,000. Airline companies may be one of the major beneficiaries. "By code sharing, Lufthansa now has 18 weekly flights from China's mainland to Germany. The number is expected to grow in order to satisfy tourist demand," said Peter Emmerich, chief representative of Lufthansa China.

German tourism companies also shared the benefits, working hard to prepare Chinese dishes and porridge. Tapes and maps were available in Chinese at scenic spots. More and more Chinese people now can afford to travel abroad, making tourism a booming industry after real estate and automobiles. In 2002, over 16 million Chinese tourists traveled overseas. The prediction that China would become the fourth largest tourism source nation by 2020, is attracting many countries to seek authorized destination status.

Indonesia's Foreign Tourist Arrival Declines in January

eTurbo.com  -   The number of foreign tourists visiting Indonesia in January 2003 decreased to 279,400, or slightly down by 0.91 percent compared to that of December last year, the Central Bureau of Statistic (BPS) announced Tuesday.

The decline in the number of foreign tourists was mostly attributed to the Bali tragedy on Oct. 12 last year. According to the BPS chief, Soedarti Surbakti said the number of foreign visitors visiting Bali in January 2003 decreased to 66, 000 or 2.95 percent, lower than the figure in December last year.

The Bali carnage, which killed more than 200 people and seriously wounded at least 350 people, has significantly scared away foreign tourists. The explosion in the Bali island caused an exodus of thousands of tourists from the island, and a number of foreign countries have issued warnings against their citizens to travel to Indonesia.

Indonesia's tourist industry, which was first hit by the financial crisis in Southeastern Asia in 1997, received another heavy blow now by the global economic slowdown and the terrorist blasts.