Newsletter - July 24, 2002

U.S. Hotels Still Waiting on Recovery

(Reuters) - Six months after predicting recovery for their industry in the second half of 2002, hotel companies and experts are rolling back the red carpet en masse until early next year, if not later.

After a disastrous downturn in the initial months after Sept. 11, the nation's hotel industry showed a remarkable resilience that led many hotel companies and analysts to predict a sector-wide recovery in the second half of 2002.

Amid the wave of optimism, companies and analysts predicted that average revenues per hotel room -- the most widely watched industry benchmark -- would come on strong in the back half of this year, resulting in annual gains of 3 percent to 4 percent over 2001 levels.

But that chugging recovery stalled in April, as an expected return of business travelers to the road failed to materialize, taking the air out of previous rosy predictions. Most analysts now believe 2002 room revenues will be flat to down slightly.

Industry leader Marriott International Inc. (MAR) provided the first glimpse of trouble ahead in mid-May, when it said room revenues for the second quarter would come in at the lower end of its previous expectations.

The final 8 percent drop it reported last week was actually off the previously forecast range of a 5 percent to 7 percent decline.

In late May, shortly after Marriott's first words of caution, consultant PricewaterhouseCoopers raised more warning flags when it announced a major downward revision of its 2002 industry forecast.

Under the revision, PricewaterhouseCoopers said it expected revenue-per-room to actually contract 0.7 percent for the year, compared with a previous forecast just a month earlier of 3 percent growth.

"Many of us thought that with the very positive signs at the end of 2001 ... we'd be back in business no problem by the time summer 2002 came around," said Chase Burritt, head of the hotel consulting practice for Ernst & Young. "Now all of us think it's probably going to be around 2003."

SLEW OF WARNINGS

The cautionary words by PricewaterhouseCoopers and Marriott in May have been followed by a flood of similar warnings from virtually every other major company in the business.

Two of the nation's top hotel owners, FelCor Lodging Trust Inc. (FCH) and MeriStar Hospitality Corp. (MHX) last month revised down their room revenue and earnings forecasts for the quarter. Their biggest competitor, Host Marriott Corp. (HMT), joined their ranks this week when it revised down its outlook for the year.

Previously, Hilton Hotels Corp. (HLT) also scaled back its second-quarter room revenue outlook, saying it now expects to report a 5 percent decline instead of the 1 percent to 2 percent drop previously forecast. The company will report its second-quarter results on July 30.

In the string of delayed recovery announcements, nearly all the chains blamed the failure of business travelers to return to the road as corporations continued to rein in spending until signs of a stronger economic recovery takes hold.

"The question is, will we have to push down further," said Bjorn Hanson, who heads the hotel consulting practice for PricewaterhouseCoopers.

Hanson added the expectation for a recovery early next year is largely based on historical precedent, and has little or no basis in current trends.

"Are there really strong indicators it will happen in the first quarter?" he said. "At some point it has to, and we do have good data on recovery from prior recessions. If it takes until the first quarter (of 2003), this will be an unusually long recession" for the industry.  

Fairmont Hotels & Resorts Inc. reports Second Quarter Results

Exceeds Second Quarter Forecast - Maintains 2002 Guidance

/PRNewswire-FirstCall/ -- Fairmont Hotels & Resorts Inc. ("FHR" or the "Corporation") (TSX/NYSE: FHR)  announced financial results for the second quarter ended June 30, 2002. All amounts are expressed in U.S. dollars.

FHR's financial results for the three and six months ended June 30, 2001 contain substantial non-recurring items related to the reorganization of Canadian Pacific Limited ("CPL"), including the operating results of CPL's four discontinued businesses, reorganization expenses and CPL corporate expenses. CPL's reorganization became effective September 30, 2001. Given the inclusion of these non-recurring charges, management does not consider prior period net income and earnings per share ("EPS") to be comparable with the current period. Management has prepared a proforma 2001 quarterly EPS statement, which is available on FHR's investor website, http://www.fairmont.com/investor.

Second Quarter Consolidated Results

Revenues of $150.2 million for the quarter were down 1.5% from $152.5 million last year. EBITDA(1) for the quarter was $53.2 million compared to $64.4 million in the same period in 2001. EBITDA guidance provided by the Corporation was $50.0 million. EBITDA benefited from gains on the sale of land of $3.3 million and $9.9 million for 2002 and 2001, respectively.

Income from continuing operations increased 10.7% to $28.9 million for the second quarter of 2002 compared to $26.1 million in the prior period. EPS from continuing operations was $0.37 in 2002 compared to $0.30 for the same period in 2001 and guidance of $0.28.

FHR's effective tax rate in the second quarter of 2002 was approximately 10%, reflecting stronger than expected earnings at the two Bermuda properties and a lower tax rate on Legacy earnings. In addition, FHR utilized capital losses to eliminate gains on land sales and had a one-time tax benefit of $1.7 million, resulting from tax credits at some of its international locations.

"We are pleased with our performance in the second quarter of 2002. Operating results surpassed expectations in particular due to the recently completed renovation activity at several properties, notably the two Bermuda hotels", said William R. Fatt, Chief Executive Officer of FHR. "In the second quarter, revenue per available room or RevPAR at The Fairmont Southampton Princess and The Fairmont Hamilton Princess increased 11.3% and 21.5%, respectively. On a comparable basis, which excludes hotels that were under major renovation during the quarter, RevPAR at our Fairmont managed hotels was down 7.4%. The decrease is primarily attributable to continuing average daily rate pressures."

"The trend continues with our Canadian portfolio showing the best RevPAR performance followed by our international properties. The U.S. continues to post the weakest results", said Mr. Fatt.

The geographical diversity of FHR's hotel portfolio and a wide-ranging customer mix benefited operating results during the second quarter. Specifically, FHR's Canadian properties account for approximately half of the Corporation's operating earnings and Canada has largely outperformed the rest of the North American lodging industry due to stronger economic performance in Canada and the general view that it is a safer travel destination. In addition, FHR's strength in the leisure segment, which represents about half of FHR's overall business, has helped mitigate the effect of continued weakness in corporate demand.

FHR's adherence to hotel cost controls throughout the quarter helped to offset the reduction in operating margins, which were impacted by increased costs for insurance premiums and property tax. In addition, FHR incurred costs associated with being a public company in 2002 that were not incurred in the first six months of 2001.

Second Quarter Hotel Ownership Operations

Revenues from hotel ownership operations were relatively flat at $136.9 million, down 1.0%, compared to the second quarter of 2001. RevPAR decreased $10.13 or 8.9% resulting from a 3.5 point drop in occupancy and a 3.7% decrease in average daily rate ("ADR"). The U.S. and International comparable statistics showed the greatest RevPAR decline at 12.5%. RevPAR was down $4.68, or 5.0%, at FHR's Canadian comparable portfolio, of which approximately $1.15 related to currency fluctuations.

Second Quarter Management Operations

Fairmont

Revenues under management in the second quarter of 2002 decreased slightly to $347 million from $354 million in 2001. The decrease relates almost exclusively to declines at U.S. city center hotels, the segment of the industry most affected by the events of September 11.

Fee revenues of $10.3 million were down $1.3 million from $11.6 million in 2001, primarily as a result of lower incentive fees in the second quarter of 2002. Management fee revenues are typically lower in the first half of the year since incentive fee thresholds are not generally reached until later in the year.

RevPAR decreased 7.4% for the second quarter of 2002. The majority of the decline relates to a 6.2% drop in ADR while occupancy declined 0.8 points. Of the $8.71 decline in RevPAR, approximately $0.70 related to currency fluctuations.

In the second quarter of 2002, new labor contracts were successfully reached at The Fairmont Hotel Vancouver, Fairmont Chateau Laurier, The Fairmont Acapulco Princess and The Fairmont Pierre Marques. In early July, new labor contracts were also reached at The Fairmont Royal York and The Fairmont Hotel Newfoundland. Contract negotiations continue at Fairmont The Queen Elizabeth, The Fairmont Empress and The Fairmont Chicago. Although it is not possible to predict the outcome of negotiations, management is hopeful that reasonable settlements will be reached.

Delta

Management fee revenues were constant at $2.8 million during the quarter. Delta continued to benefit from its purely Canadian portfolio.

RevPAR for the Delta properties declined 1.7% during the quarter. A 3.1 point decrease in occupancy was offset against a 2.9% increase in ADR. Delta's strategy through this difficult period has been to maintain its rate, which has had an impact on occupancy.

In the second quarter, Delta settled one new labor contract. Labor negotiations are currently underway at six Delta properties.

Six-Month Consolidated Results

Revenues decreased 3.5% to $276.9 million in 2002 from $287.0 million in 2001. EBITDA of $91.3 million was down from $102.2 million in 2001. EBITDA benefited from gains on the sale of land of $4.0 million and $9.9 million for the six months ended June 30, 2002 and 2001, respectively.

Income from continuing operations was $42.5 million for the six months ended June 30, 2002 compared to $21.6 million in the prior period. EPS from continuing operations was $0.54 in 2002 compared to $0.22 for the same period in 2001. The improvement in operating results is primarily attributable to non-recurring items related to the CPL reorganization.

Capital Expenditures

Capital expenditures for the quarter totaled $30.2 million. Several projects were completed, including the opening of Willow Stream - The Spa at The Fairmont Southampton Princess and the completion of the lobby and hotel entrance at The Fairmont Hamilton Princess.

The construction of the meeting facility at The Fairmont Chateau Lake Louise will begin in the third quarter now that all regulatory approvals have been received. FHR anticipates spending approximately $5 million on this project throughout 2002. The conference facility is expected to open in the summer of 2004 at a total estimated cost of approximately $45 million.

FHR has invested significant capital in its portfolio over the past few years. Attractive returns on the capital invested are expected to be achieved once the properties realize the full benefit of these improvements, which typically occurs one to two years after completion. FHR expects that 2002 capital expenditures will be in the range of $110 - $120 million.

Development Activities

On July 12, 2002, FHR secured a long-term management contract at the Sheraton Suites Calgary Eau Claire following Legacy Hotels Real Estate Investment Trust's acquisition of the hotel.

Earlier this year, Delta secured the management contract of the Delta St. Eugene Mission Resort in Cranbrook, British Columbia, which is scheduled to open in the fourth quarter of 2002. The opening of the Delta Sun Peaks Resort in Kamloops, British Columbia is on schedule for the fourth quarter of 2002.

Outlook

Mr. Fatt said, "At the beginning of the second quarter we experienced strong demand which weakened in June. There has, however, been a recovery in demand in July. Third quarter earnings are typically the strongest for the Corporation, however, it continues to be exceedingly difficult to predict earnings in this challenging business environment. We are maintaining our

full-year 2002 EBITDA guidance of $190 - $200 million, which anticipates a modest improvement in business conditions through the latter half of 2002."

As a result of reduced tax expense in the second quarter, FHR expects its effective tax rate for the year to be slightly less than 30% rather than the previously estimated 35%. Consequently, EPS guidance has been increased to a range of $1.07 - $1.10 from the earlier guidance of approximately $1.00.

For the third quarter of 2002, FHR anticipates EBITDA of approximately $70 - $75 million, or EPS of about $0.45 - $0.50, however investors are cautioned that quarterly performance tends to be more difficult to predict.

Mr. Fatt continued, "We have already begun to reap the benefits of the significant renovations at some of our most important properties and look forward to growing returns from the capital invested. We remain focused on the U.S. for growth and will take advantage of our substantial financial capacity to add additional properties to our portfolio this year."

About Fairmont Hotels & Resorts Inc.

FHR is one of North America's leading owner/operators of luxury hotels and resorts. FHR's portfolio consists of 78 luxury and first class properties with approximately 31,000 rooms in Canada, the United States, Mexico, Bermuda, Barbados and the United Arab Emirates. It holds a 67 percent controlling interest in Fairmont Hotels & Resorts ("Fairmont"), North America's largest luxury hotel management company. Fairmont manages 38 distinct city center and resort hotels 

This press release contains certain forward-looking statements relating, but not limited to, FHR's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such factors include, but are not limited to economic, competitive and lodging industry conditions. FHR disclaims any responsibility to update any such forward-looking statements.

CONTACT: M. Jerry Patava, Executive Vice President and Chief Financial
Officer, Tel: 1 (416) 874-2450; Emma Thompson, Executive Director Investor
Relations, Tel: 1 (416) 874-2485, Email: investor@fairmont.com; Website:
http://www.fairmont.com/

Source: Fairmont Hotels & Resorts Inc.

DC Marriott Hotels Launch Exclusive 96-Page Guide to Provide Tools for Discovering 'More Than the Monuments' in DC: Marriott Celebrates Heritage and Culture in Nation's Capital with New Travel Offer

WASHINGTON, July 18 /PRNewswire/ -- "Marriott Celebrates Washington, DC: More Than the Monuments" is a comprehensive guide showcasing culture and heritage in Washington, DC beyond the traditional sites to focus on the city's most diverse and fascinating neighborhoods and communities.

Developed in partnership with DC's Metrorail and the DC Heritage Tourism Coalition, the new guide is available as part of DC Metro-area Marriott Hotels' special "Heritage Escape!(SM) Package," which was developed to provide visitors with the tools they need to discover all that the city has to offer.

Marriott's Heritage Package includes up to (4) one-day Metrorail passes per night, a copy of "More Than the Monuments," and special rates at Marriott Hotels throughout the DC Metro area. Rates start at $99 per night for DC hotels. Packages can be booked by calling 1-800-MARRIOTT and asking for the "Heritage Escape! Package."

"We wanted to provide an easy and economical way for visitors and locals alike to discover Washington, DC's rich cultural heritage beyond the typical attractions and address travelers' increasing interest in American history and patriotism," said Kirby Smith, regional vice president of sales and marketing for Marriott in the Mid-Atlantic Region.

The new, easy-to-use 96-page guide showcases the rich heritage and culture of 10 DC neighborhoods and five "themes" through photographs and neighborhood maps. The book is divided by neighborhood and sites are coded by theme: Civil War & Military History, African-American History, Child-Friendly Destinations, Historic Homes and Parks and Gardens.

The guide includes a map of the Metro system and instructions on how to use it. In addition, there is a list of Web sites with information helpful for planning a stay in the DC Metro area, including best neighborhood restaurants, theatre schedules and event listings.

"As Marriott celebrates its 75th anniversary, we are particularly proud of this package that celebrates our company's birthplace. Marriott began as an A&W root beer stand on 14th Street at Park Road in Washington, DC's Columbia Heights neighborhood," Smith said.

"Washington, DC is a world-class city full of nooks and crannies that are bursting with American history just waiting to be discovered," said Kathryn S. Smith, executive director of the DC Heritage Tourism Coalition. The DC Heritage Tourism Coalition, http://www.dcheritage.org/ , is an organization of more than 125 diverse heritage, cultural, and neighborhood organizations from every section of the District of Columbia.

Participating hotels in the Washington, DC area include the JW Marriott, Marriott Wardman Park Hotel, Washington Marriott, Marriott at Metro Center and the Renaissance Washington, DC, as well as the Key Bridge Marriott and Crystal Gateway and Crystal City Marriott Hotels in Arlington, Va. The package also is available at Marriott Hotels throughout Northern Virginia and Suburban Maryland.

Radisson SAS adds seven new hotels in first half of 2002

Radisson SAS Hotels & Resorts has opened four new hotels in the first six months of this year in France, UK, Ireland and Poland. Another three contracts were signed for hotels in Birmingham, Ankara and Istanbul, bringing the international hotel chain's portfolio to a total of 149 hotels in Europe, Africa and the Middle East.

In February Radisson SAS opened its first property in the heart of Paris. This intimate, boutique-style property, located on the site of the former headquarters of well-known designer Louis Vuitton, is situated on Avenue Marceau, just off the Champs Elysées.

The cosmopolitan, chic and vibrant city of Leeds saw the opening of the Radisson SAS Hotel in May. Leeds' new and refurbished theatres, shopping malls, galleries, and waterfront dining district have earned the city a designation as an up and coming entertainment capital of the UK.

The property has 147 guest rooms, including 40 business class rooms and one suite, with a choice of different room styles, such as Italian, art deco and hi-tech. Other facilities include eight first-class state-of-the-art technology conference rooms for up to 70 delegates.

Leeds is the fourth property in the UK after London, Manchester and Airth in Scotland, with additional hotels in Glasgow (250 rooms - opening in November this year), Liverpool (200 rooms - opening October 2003) and Birmingham (208 rooms - opening mid-2005) already under development.

With two hotels in Dublin and Galway, Radisson SAS strengthens its presence in Ireland with a third hotel in Limerick, that opened earlier this month. Formerly known as the Limerick Inn, one of the leading conference hotels in the area, the property has undergone a e22 million refurbishment and is now ready to welcome its first guests.

It offers 154 guest rooms, including 25 business class rooms and two suites, and continues its tradition of providing full service conference facilities with six fully refurbished meeting rooms, the largest accommodating up to 560 people, and a banqueting area seating up to 325 guests.

In addition, the company will open a 114-room hotel in Letterkenny late next year.

Radisson SAS Hotels & Resorts targets the UK and Ireland as a major new market and aims to have 16 properties by 2005

On the way to becoming Poland's leading international hotel chain, in May, Radisson SAS opened its second hotel in Poland, in the city of Wroclaw, comprising 162 guest rooms, as well as various conference rooms, a banqueting hall and a fully equipped fitness centre with sauna.

This hotel is perfectly situated in a quiet area opposite the National Museum Panorama Raclawicka, beautifully surrounded by a park and within walking distance of most city highlights, like the Market Square - the tourist, cultural and business heart of Wroclaw.

The hotel also shares a stylish courtyard with the Academy of Art, which helped the hotel decorate its interiors with beautiful sculptures, paintings and examples of famous Wroclaw ceramics. Four more hotels - in Warsaw, Krakow, Katowice and Lublin - are planned to open between September 2002 and spring 2004.

Other cities where Radisson SAS will open hotels before the end of 2002 are Silkeborg, Denmark (August), Warsaw, Poland (September) and Glasgow, Scotland (November).

What does it take to be Glasgow's only five-star hotel? Planning, pizzazz and a knack for juggling 500 tournedos rossini, says Karen Peattie

A week in the life of Glasgow Hilton

Sunday Herald  -  What does it take to be Glasgow's only five-star hotel? Planning, pizzazz and a knack for juggling 500 tournedos rossini, says Karen Peattie

WEDNESDAY 1pm and the atmosphere is calm. Guests enjoy lunch in the relaxed surroundings of Minsky's restaurant while others prefer to sit in Raffles Bar. People are checking in or checking out. Welcome to Hilton Glasgow, the city's only five-star hotel.

It's another day in the life of a hotel that survives on a healthy mixture of corporate hospitality events, high-profile functions and leisure. Today, the hotel is busy and that's good news for Glasgow and good news for tourism in Scotland.

In fact, this hotel is a key contributor to Hilton UK and Ireland's annual turnover -- £598 million in 2001. A drop in the ocean compared to Hilton International's £2.5 billion turnover but significant all the same. The Hilton Group was also named as the pick of European hotel groups by Credit Suisse First Boston on Thursday and a Buy recommendation was issued, which caused shares in the group to rise 6% on the day's trading.

Hilton Glasgow draws approximately 10% of its revenue from its conference and banqueting business. The spin-off from room bookings and bar takings makes functions even more crucial to the hotel. And in Glasgow the Hilton is considered the premier location for a gala ball, awards ceremony or big corporate function.

Against a backdrop of trilling mobile phones, guest and PR manager Isla Campbell points to the relaxed atmosphere as evidence of the hotel's ability to meet the demands of its customers. 'Our aim is to ensure that all our customers and clients are happy with the service they receive,' she says. 'But we're not stuffy. There's a fine balance of protocol and informality -- guests want to be reminded that they're staying here or dining with us or attending a function in a five-star hotel but they want to be able to relax without feeling intimidated by their surroundings.'

Joint operations managers Jessie Martin and Billy Bradburn are both veterans of the Glasgow hotel trade and have worked at the Hilton for most of its 10-year life. There's a real buzz about the place as it prepares for the Hilton's own charity event, due to take place that Saturday -- a Summer Cruise Ball in aid of Hilton In The Community Foundation -- which is organised and co-ordinated by Isla Campbell and a team of committed Hilton executives.

Martin and Bradburn, preferring to label themselves senior head waiters, display no nervousness as they talk about the planning that goes into such a big function. After all, they're in charge of 150-plus events of this type throughout the year.

'As this is our own event, I think the staff are feeling more excited than usual,' says Martin. 'Our aim is always to ensure that an event runs smoothly and that the client is satisfied. But this is our big event of the year and there's no room for error -- all our bosses will be there watching our every move.'

Both agree that there's nothing like seeing a big event like the Summer Cruise Ball coming together. As there is no big function on the Friday night, the ballroom can be set up that afternoon. This particular event has adopted an Art Deco theme and soon the staff have brought to life the elegance of the model 1930s cruise liner that forms part of the backdrop.

Thursday afternoon and executive chef James Murphy's meticulous preparations for his five-course gastronomic extravaganza have experienced a setback, thanks to a delivery of monkfish. But this big Glaswegian takes it all in his stride. No tantrums or plate throwing from this chef!

'The monkfish I ordered has arrived with the skin on so it's had to go back,' explains Murphy, an Egon Ronay finalist who was a sous chef at the hotel when it first opened. 'It'll be on sale half price all over Glasgow now!'

Chef deals with the inconvenience professionally. The correct order will now be arriving the following afternoon, not ideal but that's just the way it has to be. 'This sort of thing doesn't normally happen but it's a nuisance because we have to send people home then bring them back to work late the next day -- we deal with it though, we don't panic when things go wrong.'

By Saturday afternoon, Murphy's monkfish worries are in the past and his cebiche of seared monkfish, peppers, lime and soft herbs is shaping up for this evening's rather tempting starter.

Spotlessly clean, the banqueting kitchen is surprisingly quiet. Murphy has time to talk about the rest of the menu which features tournedos rossini -- fillet of beef with Madeira sauce, foie gras, selected vegetables and potatoes. He also answers one of the most commonly asked questions of chefs: how do you get 500 fillet steaks ready and on the plate, ready to serve, at once?

'It's not a trade secret,' he says. 'Careful planning, that's all. The beef has been sealed earlier in the day and most of the other food can usually be plated up well in advance so we never have any problems with banquets.'

It all sounds too easy but that's because this award-winning chef -- Menu of the Year at the 2002 Scottish Chef Awards -- runs such a tight ship. The potatoes for Saturday night, for example, have been pre-prepared and only have to be roasted. The tart cases have also been made in advance and frozen while the bread rolls will be baked just before they are served.

'Yes, it's a pretty slick operation,' Murphy admits. 'Tonight, we're catering for 480 people and that's one of the Hilton's strengths, I think, our ability to be consistent with the quality of our food when we're dealing with such large numbers. We buy from nominated suppliers so we know the quality is consistent and we can get whatever we want, when we want. But it's all down to teamwork at the end of the day -- all hands on deck, really.'

Murphy cares about his staff and is concerned that some of the breakfast chefs have been working since 4am. He relieves his own stress and switches off by running the six miles or so to work from his home in the south of the city. But his responsibility to his own staff is always at the forefront of his mind.

'They've stayed on to help and I really appreciate that because they'll be back in again early in the morning -- that's commitment. And while all of this is going on, we've also got 100 booked in for Minsky's tonight, 36 in Camerons, our fine dining restaurant, and a small private function for 17 just to keep us on our toes.'

Time for another little hiccup in the kitchen. Murphy has to send someone out to Sainsbury's to buy the correct type of sea salt he wants to use on his vine tomatoes. He's not happy with the product delivered for the occasion and he refuses to compromise. 'It's no big deal but I've got to be 100% happy with everything that leaves this kitchen.'

Saturday 6.15pm and the agency staff who will serve guests at the function are waiting in the ballroom, immaculately dressed and looking forward to the evening. Jessie Martin and Billy Bradburn are ready to brief them. While the core staff and wine waiters don't need a pep talk, some of the agency staff are new to the Hilton and need the reassurance. Agency staff are considered very much part of the Hilton team, however, and many of them are regular faces at functions. Hilton Glasgow also involves them in its staff training programme.

Meanwhile, Matthew Mullan, general manager of Hilton Glasgow and two of the company's Irish hotels, has already arrived and is going out of his way to make staff feel at ease. Other Hilton VIPs are also observing the proceedings.

At 6.30pm, Radio Clyde's George Bowie is checking out his set for the disco. Bryan Burnett, the very affable host of Scottish Television's Scottish Passport, cuts a dash as he strolls into the ballroom to be welcomed by resident toastmaster, Scott Muir, himself an imposing figure.

Now, with just 15 minutes or so before the guests start arriving for the champagne reception, Isla Campbell looks relaxed but relieved. In fact, she isn't even concerned when agent Neil Drover, whose company A World Of Entertainment has been heavily involved in setting up the evening, reveals that one of the bands is stuck in a traffic jam somewhere on the M74.

But both Macumba and The Flying Emperors do arrive with plenty of time to spare and the numerous beneficiaries of Hilton In The Community Foundation, many of them local, will eventually emerge almost £35,000 better off thanks to the generosity of guests and the hard work of hotel staff. 

So it's no big deal, then, organising a big function? 'Piece of cake,' says chef. Matthew Mullan probably agrees. He doesn't know about the monkfish or the sea salt or the traffic jam. All he needs to know is that these guys know how to keep the customers satisfied.

Source:  Sunday Herald

IH&RA Announces Theme of 2002 Environmental Award

IH&RA, the International Hotel & Restaurant Association, invites hotels and restaurants around the world to apply today for the IH&RA 2002 Environmental Award which recognizes outstanding examples of best environmental practice from both corporate and independent establishments. This award, now in its 12th year, is sponsored by American Express Establishment Services and focuses on Energy and Indoor Air Quality in Hotels & Restaurants. Applications will be reviewed and judged by industry experts from the United Nations Environment Programme, GreenGlobe 21, Siemens and Radisson SAS Hotels & Resorts. The winners will be announced at IH&RA's 39th Annual Congress to be held November 8-11, 2002, in New York City, and selected applications will be published as IH&RA best practice case studies.

IH&RA chose the theme of Energy and Indoor Air Quality in Hotels & Restaurants recognizing the challenge hotels and restaurants face in improving energy efficiency while ensuring an acceptable indoor environment. This is a real world problem as people spend 80% of their time inside buildings. While energy efficiency is critical to cutting costs and emissions, the indoor environment is the most fundamental element of service quality. Guests want a comfortable environment in order to be productive at meetings and enjoy their leisure time, be it in their rooms, in restaurants or around establishment premises. At the same time, employees need to concentrate to work efficiently and creatively. To guarantee these expectations, a good indoor environment is essential.

The challenge is to improve the indoors without compromising on energy efficiency. These two objectives are at the core of environmental management and as such reflect an operator's commitment to corporate social responsibility. With this in mind, IH&RA seeks to honour establishments on the cutting edge of service delivery while making their property a cleaner, healthier and safer place to work and rest.

Applicants are judged on: evidence of long-term commitment to sustainable hotel and/or restaurant management; use and description of technologies and approaches to energy and air quality management and monitoring; results of energy savings and improvements in indoor air quality over time; quality of environment and energy management training provided to employees and chief engineers; the means by which employee and guest complaints on energy and indoor environment are handled and resolved.

IH&RA launched this Environment Award in 1991 with the support of American Express Establishment Services. Over the past years, this Award has become recognized as one of the industry's top honours for excellence in hospitality service and environmental best practice, and sets an industry standard for all hospitality establishments.

IH&RA invites all hospitality industry establishments to submit their applications for the 2002 Environmental Award by the deadline of September 1, 2002. For an application form, please visit www.ih-ra.com /award.

Sydney 'best in the world'

Sydney has been voted the 'world's best city' by the readers of the US-based Travel - Leisure magazine, nudging ahead of Florence, Bangkok, New York, Rome, San Francisco and Paris.

The city was particularly praised for its vibrant restaurant industry.

Perth was voted the city with the 'world's best people', while Bali was voted the world best island, ahead of Tasmania.

France's Boyer Les Crayeres was voted No 1 hotel in the world.

Singapore Airlines was voted number one non-US airline, followed by Cathay Pacific and Thai Airways.