Newsletter - January 15, 2002

STARWOOD INITIATES SALE OF CIGA PORTFOLIO OF 25 LUXURY HOTELS

Hotel Giant Advisers Bring World Renowned CIGA Portfolio To Market

NEWS IN BRIEF FROM AROUND THE WORLD

TOURISM DROP HURTS ORLANDO HOTELS    Local hotels are facing ``a blood bath'' since the Sept. 11 attacks and they're not expected to recover for at least another year, an economist told a real estate conference Thursday. ``It's because of the large number of hotels here and the large expansion over the last few years, the dependence of the area on tourism and travel,'' economist Hank Fishkind said after addressing the Florida CCIM Real Estate Economic Outlook Conference & Expo. With almost 105,000 hotel rooms, Orlando is Florida's biggest lodging market and ranks second only to Las Vegas nationwide. Other indicators back Fishkind on the devastation the tourism slowdown has wreaked on Orlando's lodging market. By the end of 2001, the Orlando area had 14 hotel properties in arrears on loans worth $170 million, many falling into delinquency after Sept. 11, said Larry Kay, a Standard & Poor's director, from his New York office. Similar statistics were not available Thursday for hotels in South Florida.

The Orlando statistic represented about a quarter of the share of troubled hotel loans nationwide, the largest of any market in the nation.
 

MANDARIN ORIENTAL, SAN FRANCISCO RECEIVES THE COVETED EXXON MOBIL FIVE-STAR AWARD FOR THE THIRD CONSECUTIVE YEAR ~ Only hotel in San Francisco and one of 25 North American Lodgings Awarded ~  Mandarin Oriental, San Francisco has once again achieved the coveted Mobil Travel Guide Five-Star Award.  For the third consecutive year, the 158-room hotel is the only hotel in San Francisco and one of only 25 exemplary hotels, inns and resorts in North America to earn the hospitality industry’s most distinguished award. “Of the thousands of properties included in Mobil Travel Guide, only a fraction achieve the level of excellence required by the Four-, and particularly the Five-Star, designation,” said Kenneth P. Cohen, Vice President, Public Affairs, Exxon Mobil Corporation.  “The Mobil Travel Guide Five-Star Award indicates that a property is one of the best in the country,” Cohen adds. “This award is testimony to the continued ability of our staff to anticipate our guests needs, exceed their expectations, and create a memorable and lasting experience. I feel very proud of this year’s recognition as it was earned in an extremely competitive and challenging year,” said Mandarin Oriental, San Francisco General Manager Alain Negueloua.

KAHALA MANDARIN ORIENTAL, HAWAII, TAKES TOP POSITION FOR BEST ROOMS IN THE UNITED STATES  Luxury hotel operator, Mandarin Oriental, has graced Conde Nast Traveler’s 2001 prestigious Gold List.  The Group’s properties in Bangkok, Hong Kong, Hawaii, San Francisco, Florida, New York and London were amongst the exclusive hotels selected in this year’s poll, which features the world’s top-scoring hotels, resorts, spas and cruise lines as rated by 29,000 frequent travellers. Kahala Mandarin Oriental, Hawaii was also accorded the number one position within the “Best by Rooms” category for the United States. The magazine cites that the rooms are “so decadent you’re reluctant to leave – even to go to the water”. Mandarin Oriental is the award-winning owner and operator of some of the world’s most prestigious hotels, including The Oriental, Bangkok and Mandarin Oriental, Hong Kong. In total, the Group operates 18 luxury hotels in key business and leisure destinations, with two additional hotels under development, one in New York (opening early 2004) and the other in Tokyo (opening 2006). In total, Mandarin Oriental employs almost 9,000 staff in three continents with nine hotels in Asia, six in North America and three in Europe.

TOP 10  RANKING IN AUSTRIA’S TOURISM  Schmoll & Partner (S & P tourism consulting) a tourism specialist consulting company in Austria, operating for over 20 years, has evaluated the Austrian hospitality industry. The survey covering a TOP 40 ranking, was conducted on behalf   of Austria’s tourism magazine “Hotel & Touristik” . Over 150 tourism related operators have been asked for their operating results concerning annual revenues, number of fulltime employees, annual occupied rooms and GOP.  Top 5 Overall ranking: 1.ANA Grand Hotel Wien,  2. K+K Hotels, 3. Starlight Suite Hotels, 4. Austria Trend Hotels &Resorts, 5. Austria – Oesterreichische Hotelbetriebs AG   For further details visit the website:    http://www.schmoll.at/

BALI TOURISM BOARD SCRAPPED  Bali's tourism industry has suffered another blow with the winding up of the Bali Tourism Board, the latest organisation charged with presenting a united front to the island's tourism marketing efforts. The board has been dissolved on the orders of the island's governor following public wrangling between different interest groups over the board's effectiveness and direction. According to an online report in the Bali Update, in dissolving the BTB, the governor has asked the local tourism community to refrain from using the BTB name for any future forum or organisation. He did, however, invite the island's tourism industry to establish any forum, organisation or grouping that it wished in order to preserve the harmony between the various tourism sectors. Bali Update reported: "Apparently, with the BTB becoming politically "too hot to handle" and the focus of divisiveness within the ranks of Bali's tourism leadership, the governor eventually took the decision to shut down BTB."

NEW PROPERTIES FOR FOUR SEASONS  The Four Seasons hotel group is to open in Shanghai and Sharm El Sheikh in March and April respectively this year.
Shanghai’s 443-room hotel will have a spa with plunge baths and whirl pools beside a roof-top garden. There will be a number of dining options including a Chinese restaurant, steak and seafood grill and a sushi and teppanyaki bar. The Sharm El Sheikh hotel will have 140 rooms, most with views over the Red Sea. The hotel will have a health club, spa, two tennis courts and a salt-water pool for guests who want to just float and relax.

SOL MELIA EXTENDS INTO SARDINIA  Spanish hotel giant Sol Melia is to take over the management of two properties in Sardinia. The Melia Poltu Quatu and Melia Olbia are scheduled to open in July this year and June 2003 respectively.
The company now has six hotels in Italy and Sardinia. The Quatu has 140 rooms and is in the north of the island on the marina of the same name. The hotel is just 3km from Porto Cervo and the Costa Esmerelda. Facilities include a restaurant, bar-cafeteria, swimming pool, disco and meeting rooms for up to 250 people.
The Olbia has 234 rooms, of which 154 are in the main building and 80 are bungalows and Garden Villas. The hotel is in Sassari in a resort village and has an Olympic-size swimming pool, convention centre, full-size football pitch, two restaurants, two bars and tennis courts.

GRAND HYATT ERAWAN BANGKON FINISHES US$8 MILLION REVOVATION  The Grand Hyatt Erawan Bangkok has completed a facelift costing US$ 8 million (350 million baht), the hotel's first major renovation in a decade, designed to maintain its position as a leading hotel for businessmen. The overhaul, carried out over 18 months, has given the five-star hotel on Ratchadamri Road a more modern appearance, in line with today's executive lifestyle, according to Pierre Bonard, the general manager. "Our main strategy is to create an atmosphere to retain our existing corporate clients."The revamp included all 387 guest rooms, restaurants, the lobby and the garden. Mr Bonard claims that the Grand Hyatt Erawan Bangkok is second only to The Oriental Bangkok in the corporate hotel category in revenue and occupancy level. Last year, the hotel's average occupancy rate was 60 percent and it aims to increase the rate to 65 percent this year.  On Dec 17, Grand Hyatt opened its second property in Thailand, the Hyatt Regency Hua Hin in Prachuap Khiri Khan. The hotel was expected to complement the Bangkok property with package sales, Mr Bonard said.

ST. REGIS SHANGHAI BEST NEW BUSINESS HOTEL 2001 – FORBES MAGAZINE  The St. Regis Shanghai, the first international luxury hotel, designed to operate to five-star standards, to open in Shanghai in the 21st century, has been awarded one of Best New Business Hotels Of 2001 by Forbes Magazine. The hotel was selected amongst newly opened business hotels worldwide in 2001 by Forbes editors. Shanghai is one of the fastest-growing business centers in the world, and the latest entrant in the race to provide luxury accommodations to visiting executives is The St. Regis Shanghai. Located in the central business district of Pudong, the St. Regis aims to bring to Shanghai the level of service that has made its New York flagship one of the best in the U.S.

REGAL HOTELS LAUNCH WINTER RATES   Regal Hotels International has launched new winter rates, the Regal Winter Temptation package, valid until Match 15 this year. The Regal Kaitak Hotel is offering a rate of HK$700 ($US89) per night for a single room and HK$750 for a double. The Regal Riverside Hotel is HK$780, the Regal Kowloon Hotel HK$880, the Regal Airport Hotel HK$1,200, the Regal Hong Kong Hotel HK$1,230, the Regal Shanghai East Asia Hotel US$88 and the Regal International East Asia Hotel, Shanghai US$130. The package includes deluxe accommodation, free miles and late check-out until 1600.
http://www.regalhotel.com