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CRAWFORD RESIGNS AS MACDONALD  MD

Macdonald Hotels has announced that Guy Crawford has resigned as managing director.

The statement issued to the Stock Exchange says that he is leaving to pursue his own interests after overseeing the successful integration of Heritage into Macdonalds.

Gerry Smith, deputy chief executive, will now also fill the role of managing director for hotels.


SHANGRI-LA CONSIDERS LISTING ON MAINLAND EXCHANGE


South China Morning Post  -  Shangri-La Asia has confirmed its interest in listing its mainland hotel properties on the Shanghai or Shenzhen stock markets, but it has not yet appointed a financial adviser.

"We are currently looking at and examining the possibility of listing on the mainland but no decision and no application has been made," spokeswoman Julia Record said.

The luxury hotel operator has 16 hotels in China, with more than 8,100 rooms, out of its entire portfolio of 38.

Ms Record said the company was considering the listing given the weighting of the mainland operations in the company's hotel portfolio.

"All listed companies in Hong Kong do consider from time to time finding funding opportunities," she said.

This fund-raising could take the form of bank lending, or bond or equity issuance, including the possibility of tapping new markets such as A- and B -share markets, she said.

But she said the company was not working with any financial adviser at present.

The group had once hired China International Capital Corp (CICC) to look at the possibility of a mainland listing but "we are not now".

She said the group had received listing advice from CICC, a joint venture between China Construction Bank and Morgan Stanley, which was still being studied.

Reports have said Shangri-La Asia has appointed CICC as its listing sponsor for the flotation of the China hotel business on the A-share market in the middle of this year. The reports quoted a mainland news Web site saying shares would be offered at a price-earnings ratio of as much as 20 times, with an asset valuation of between two billion yuan (about HK$ 1.8 billion) and four billion yuan.

Analysts said a flotation might be used to finance Shangri-La's planned US$ 400 million worth of investments in China over the next four years and to reduce debt.

The group earlier disclosed it planned to open new hotels in Fuzhou, in Fujian province, Puxi district in Shanghai, and also an extension to the Pudong Shangri-La in Shanghai.

The new hotels are expected to be completed by early 2005.

Daiwa Institute of Research analyst Natalie Chow said the group's China businesses were an operational bright spot.

Shangri-La Asia's interim profit for the six months to June 30 was US$ 30.49 million. Its revenue was driven mainly by China while Hong Kong and Southeast Asia recorded a decline in contribution.

In China, revenue rose 16 per cent to US$ 20.5 million during the period.

In 2000, hotels in China contributed about 21 per cent to its operating profit while Hong Kong accounted for 23.9 per cent, Ms Chow said.

The group will announce its results for the 12 months to December 31 last year on March 22. The group remains the largest foreign hotel-owner in China.

Its network was far ahead of its peers, Ms Chow said, adding that Shangri-La would benefit most when China started to relax foreign-ownership restrictions.

GOOD NEWS FOR LOYAL GUESTS OF AHA MEMBER HOTELS

Reciprocal benefits at some 60 participating hotels in nearly every city and resort destination in the region! 

Asian Hotels Alliance (AHA) takes pleasure in announcing its first collaborative effort to recognize loyal supporters of its member hotels. With immediate effect, holders of the Dusit Gold Card, the Landis Card, the Meritus Privilege Card, as well as members of the Marco Polo’s Taipan Club and the New Otani Club will be able to enjoy reciprocal benefits at some 60 hotels within the Alliance

Michael Ow, President of Meritus Hotels & Resorts, said, “ This is one of our primary objectives in forming this alliance – and that is to reward our loyal customers with added value over and beyond that which one single hotel group can offer.

Under this reciprocal benefits scheme, members of the recognized cards and loyalty programs will be accorded the same benefits and rates that are extended by the host hotel to its own members. “Hence, a Landis Card holder will now be able to enjoy the special rates and benefits accorded to a Taipan Club member when he stays at a Marco Polo hotel, and vice versa,” says Jeffrey Flowers, Senior Vice President of Marketing, Marco Polo Hotel Group.

To enjoy these reciprocal benefits, a guest need only to make his reservation in advance through the AHA website – www.asianhotelsalliance.com – and show his membership card of the recognized program/club when he checks in at the hotel. Reciprocal rates and benefits will not be available in conjunction with other discounts such as group or special contract rates.

Summing up, Mr. Chanin Donavanik, Executive Director of Dusit Hotels & Resorts said, “We believe this is just the beginning of more mutually beneficial marketing programs, focused to better serve our pool of loyal guests.  Our aim is to extend and broaden significantly our various corporate, recognition and loyalty programs through our vital participation in AHA.  We are deeply committed to the success of our joint promotions, and we are convinced that this will be a major step towards greater unity, goodwill and cooperation among all AHA members.

Background

The Asian Hotels Alliance is an association of Asia based hotel companies who have formed a marketing relationship to better serve existing and future customers of the Alliance members.  The Founding Members are Dusit Hotels & Resorts (Thailand), Landis Hotels and Resorts (Taiwan), Marco Polo Hotel Group (Hong Kong), Meritus Hotels & Resorts (Singapore), and New Otani Hotels (Japan).

THIRD "HOSPITALITY SALON CULINAIRE" SETS NEW PARTICIPATION RECORD AND ATTRACTS INTERNATIONAL JURORS TO BEIRUT

- Levant’s leading Chefs Competition held as part of HoReCa 2002 -

A total of 150 chefs— twice as many as last year – are expected to participate in the third annual “Hospitality Salon Culinaire”, the region’s leading chefs competition being held in Beirut on April 9-13 as part of HoReCa 2002, the Levant’s largest and most regional Food and Hospitality event.

The event’s growing regional importance is also attracting a number of internationally renowned culinary jurors; including Yves Thuries, Author of the eleven volume encyclopaedia “Le Livre de Recettes d’un compagnon du tour de la France”; Markus Iten, President of the Egyptian Chefs Association; and Jacques Charette, President of the” Académie Nationale de Cuisine” in France.

“We’re very proud of the Salon Culinaire’s growing recognition as a leading chefs competition and the fact that it is providing local chefs with a platform that qualifies them to take part in international culinary events,” said Joumana Dammous-Salame, Managing Director of organizing-company Hospitality Services.

Salame cited the example of Lebanese Chef Joe Barza, who after winning the Gold Medal in the five course set menu category in the previous Hospitality Salon Culinaire is now moving on to represent Lebanon at the “World Pastry Cup” in Lyon, France, in January 2003.

Other jurors at this year’s event, which features 18 different categories, are Thomas Gugler from Germany and France’s Julien Tornambe, Franck Petagna and Charles Ceva.

Other activities on the HoReCa 2002 agenda include an alcoholic and non-alcoholic beverages bartending competition and a “Job Meeting Point” designed to bring employers together with the industry’s potential brightest newcomers. A series of conferences is also under preparation, with key announcements on topics expected shortly.

HoReCa 2002’s “Hospitality Salon Culinaire” is sponsored by Elle et Vire and Nestle, and co-sponsored by Shuman. More information is available online on www.hospitalityservices.com.lb

HoReCa 2002’s “Hospitality Salon Culinaire” features the following 18 categories:

-          Three-tier decorated wedding cake

-          Single- tier novelty cake

-          Six- plate dessert presentation

-          New style Lebanese sweets’ presentation

-          Sweet cocktail- party pieces

-          Six plate appetizer presentation

-          Five course set dinner menu

-          Vegetarian menu

-          Cold Platter of fish, chicken or meat

-          Chocolate carving

-          Pastry showpiece

-          Fruit and/or vegetable carving display

-          Junior chef presentation

-          Live traditional Lebanese “Mezze”

-          Live cooking competition “from the basket”

-          Live fruit and/or vegetable carving

-          Live pastry competition

-          Live Ice carving competition

“Hospitality Salon Culinaire”  Jurors Information:

Ø       Jacques Charette: President of the” Académie Nationale de Cuisine” in France and Member of the “ Académie Culinaire de France”.

Ø       Yves Thuries: Author of the eleven volume encyclopaedia “ Le Livre de Recettes d’un compagnon du tour de la France ». Awarded the « Meilleur Ouvrier de France », the highest award for a craftsperson in France.

Ø       Markus Iten:  Founder and President of the Egyptian Chefs Association (ECA), and Member of the World Association of Cooks Societies (WACS).

Ø       Franck Petagna: “Professeur Cuisine” in the “Ecole Internationale D’art Culinaire Paul Bocuse” in France and First prize winner of the “ Prix Artistique à Romoranthin” in 1997.

Ø       Charles Ceva:  Lecturer at the National School of French pastry at Yasingeaux. Member of the Culinary Academy of France.

Ø       Julien Tornambe: General Manager of Pattis France (A division of Tamimi group of companies) in Al Khobar, Saudi Arabia. Member of the World Association of Cooks Societies (WACS).

Ø       Thomas Gugler: Permanent Judge of the German Industries and Handworks Chamber, and trainer of the German national junior team of chefs.

INFRASTRUCTURE PROJECTS FOR TOURISM TO BE FOCUS OF U.S.-EURASIA CONFERENCE

U.S. Trade and Development Agency News -  Tourism development in Eurasia will be the focus of a U.S.-government sponsored conference May 29-31 in Istanbul, Turkey. The event will help match U.S. companies with tourism infrastructure projects in 12 Eurasian countries.

Destination Eurasia: Building Infrastructure for Tourism will provide participants with information on large-scale projects involving roads, airports, railways, hotels, resorts, parks, monuments and other cultural heritage sites. Plans for tourism-related water treatment plants, power plants and telecommunications networks will also be featured. The combined value of projects to be presented at the conference is expected to exceed $350 million.

Organized by the U.S. Trade and Development Agency (TDA), in cooperation with the U.S. Department of Commerce, the conference will highlight opportunities in Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, as well as Turkey. Representatives of state-owned and private-sector enterprises in the region will take part in the conference and present details on more than 20 projects currently on the drawing boards. A series of pre-scheduled one-on-one meetings will also enable U.S. company participants to meet privately with the project sponsors.

Also expected to participate are senior government officials from the U.S and the Eurasia region, U.S. commercial service officers, and representatives of local companies interested in partnering with American firms. Representatives of international lending institutions, including the U.S. Export-Import Bank and the Overseas Private Investment Corporation, will also be on hand to discuss financing and loan guarantee programs available for projects.

"Travel and tourism is one of the key sectors driving economic development throughout the world," noted TDA Director Thelma J. Askey. "The countries participating in this conference have the history, culture, and natural beauty to attract tourists, but require improvements in infrastructure to sustain and grow their tourism industries."

Each U.S. participant will receive a comprehensive resource guide and CD-ROM outlining the projects presented, including critical economic information, export potential, time lines, equipment needs and key contacts. "This conference will provide an unprecedented opportunity for U.S. companies to learn about new infrastructure project opportunities in the region," said Askey.

Trade and industry organizations supporting the conference include the American Council of Engineering Companies, the American Resort Development Association, the American Road and Transportation Builders Association, the Electric Power Supply Association, the American-Turkish Council, the American-Georgia Business Council, the American Uzbekistan Chamber of Commerce, the U.S.-Azerbaijan Chamber of Commerce, the U.S.-Kazakhstan Business Association, the U.S.-Ukraine Foundation, the U.S.-Russia Business Council and DEIK – the Turkish Foreign Economic Relations Board.

The U.S. Trade and Development Agency helps form mutually beneficial partnerships between U.S. private-sector companies and overseas sponsors. An agency of the U.S. government, TDA provides assistance in more than 60 nations around the world each year.

For registration or more information, visit the conference web site, www.trademeetings.com or contact Dan Lamey at telephone 1-866-636-4729. Email address: tda@mfmgroup.com.  

ROCCO HAS FOUND HIS FORTE WITH NEW LUXURY HOTEL CHAIN

Daily Mail, London  -  It is six years since multimillionaire hotel tycoon Sir Rocco Forte lost his job. He was deposed as the head of an empire created by his father after one of the most bitter takeover battles in City history marked by ruthlessness, intrigue and treachery worthy of a Shakespearean tragedy.

Rocco is now building a new hotel business - and a new life.

It is a venture into which he has sunk a large part of his personal fortune. The contrast between the two careers could not be greater.

At Forte he controlled 800 hotels, 1,000 restaurants, 100,000 staff, and ran departments for marketing, personnel, sales - all the trappings which accompany a multinational concern.

Today Rocco, 57, works with a head office staff of 17 from simple open-plan offices close to London's Haymarket. Rocco Forte Hotels has seven hotels, with an eighth opening in Frankfurt in 2005.

These are no budget night stopovers, but luxury hotels to suit the most discerning traveller. Rocco's designer sister Olga Polizzi has helped to blend old world grandeur with modern high tech communication systems. One hotel has seaweed wraps and hydrotherapy suites. Another has views over Rome's rooftops.

It is easy to dismiss this as a rich man's indulgence, a project to pass the time and avoid dwelling too much on a loss which clearly still causes hurt years afterward.

But Rocco appears totally committed to his new hotels. Such full commitment is essential. The hotels are at the upper end of the market, which has been hammered by the collapse in tourism since September 11.

Rocco concedes trading has been difficult, and some hotels have suffered. 'The slowdown has cost us a lot of profit, although there has been help from the fall in interest rates.' He puts the net impact at GBP 3m.

Other groups have tried and failed to create a luxury pan-European city centre chain. Rocco is competing against major players with powerful brands and international marketing muscle. He admits overheads for a small group are higher than he would like.

Does this give him sleepless nights? The Bank of Scotland has

granted a near GBP 300m line of credit but he still has family money at stake, some GBP 60m from his retired father and his sister. He laughs, a shade nervously, and says he sleeps soundly, but he can't be sure about the bank manager!

The night after Rocco surrendered control of Forte he lay awake wondering 'what the hell to do with my life'. Married with three children, Lydia, now 15, Irene 13, and son Charles 10, he had enough money to live a life of comfort with his wife Aliai.

Forte was taken over for GBP 3.9bn. When Rocco discovered that Granada was considering breaking it up and selling the upmarket Meridien chain for GBP 1.1bn, he began negotiations to buy, but the deal eventually floundered leaving him rootless once again.

From the age of 14 Rocco had worked in the hotel industry, starting as a cellar boy at the Cafe Royal, learning the business step by step under the tutelage of his father, the legendary Charles, now 94, who built a global empire starting from a Regent Street milk bar in 1934.

Even with a personal fortune estimated at GBP 300m from the takeover, Rocco had no intention of living in idle splendour, or indulging his passion for sport. He routinely cycles 50 miles and has run eight marathons.

He rarely talks to City journal-ists these days - more to fashion writers about the latest designs for his hotels. He prefers not to dwell too much on those bitter months in 1995/96.

Famously, he was reportedly grouse shooting in Scotland when Granada's Gerry Robinson launched his bid. The implication was that here was a playboy boss pursuing the pleasures of life rather than working for his shareholders.

THE recent court row between Unilever and Mercury Asset Management brought all the memories back. MAM and its investment chief Carol Galley triggered the downfall of the Forte dynasty. MAM was a major Forte shareholder and felt its investment was not earning good enough returns.

One critic said: 'On every measure Forte was underperforming.'

It was a classic battle - the working class Irishman Robinson pitched against the upper crust Forte. Robinson said at the time 'Hotels, like catering, TV, and any business, are about management.'

Says Rocco: 'I thought I had done everything that was needed, before I was rudely interrupted. When I became chairman I met Galley and Stephen Zimmerman (MAM's co vice-chairman).

'They were outspoken about what needed to be done, and over the next two years I delivered. So I felt let down by the way they behaved - not so much by the final decision, because the price was high and I don't blame institutions for accepting the money.

'MAM were instrumental in the bid happening, although they will deny it. Zimmerman jumped two feet in the air when I confronted him over it. That is what is so irritating. But once a company is bid for, it is all about getting the price up. I think we were successful because Granada made no money. It cost them more.

'The irritating thing was being bid for in the first place. I was doing huge amounts of work and we had real profit growth in the year before.

'But I didn't do enough to promote myself and what was happening. Now I am small I have to shout loudly to be heard!'

Rocco is dismissive of Robinson, and clearly considers him MAM's puppet.

After the bid, Robinson came to see him. Says Rocco: 'He seemed as if he hadn't a clue what to do next. Everyone had heard of Hanson clearing everyone out within 24 hours of an acquisition. With Forte, it took over a month for the directors to go. Even two months afterwards, I was still signing cheques.'

The whole experience clearly left a mark. It is highly unlikely Rocco would ever float his new business. He enjoys the freedom from institutional interference. If he were running a public company, he might have to be more ruthless with his fledgling chain.

St David's in Cardiff, for instance, is a disappointment. The Bay area has failed to take off as projected. Rocco says: 'We need to sell rooms at GBP 150 a night to be profitable. I realise now that is not easily achieved in Cardiff.' Generous grants made the project seem more attractive than it was.

Industry observers claim his decision to launch the business in 1996 may have been influenced by a wish to avoid tax penalties, by reinvesting capital gains from his Forte shares.

ALONG the way, he has collected hotels in exotic locations such as St Petersburg - but not in Paris or London. He acknowledges the gap.

'Of course I want to be in London but I am not going to overpay and endanger the company. I haven't found anything that makes sense, but I am looking.'

The new venture's slow progress inevitably invites comparisons with the way his dynamic father built up the Forte group. Rocco wants hotels with a maximum of 200 rooms. Beyond that, he believes it is difficult to maintain standards. Managers who meet them can earn 40pc bonuses.

Rocco is satisfied overall. The Hotel de Russie in Rome and Savoy in Florence are trading well, as is the Balmoral in Edinburgh. ' I didn't have a target when I set out. To have eight properties in five years (including Frankfurt) is not a bad record. 

We have established a reputation for stylishness and comfort. I think I have demonstrated that I am not fooling around.

CENDANT’S HOTEL GROUP NAMES HEAD OF INTERNATIONAL SERVICES

Cendant Corporation’s hotel group today announced the appointment of Rajiv Bhatia as vice president, international services, responsible for overseas franchise sales and support efforts. Based in Parsippany, he also will serve as liaison with the division’s Asian-American franchisees in the United States.

Bhatia was promoted to his current position after serving five years as corporate director, international hotel services. Prior to his international hotel services post, Bhatia served Cendant as regional franchise manager for the Howard Johnson brand from 1995 to 1996 and franchise service manager from 1994 to 1995. He was the general manager of a Howard Johnson hotel in New York City from 1991 to 1994.

From 1989 to 1991, Bhatia was the deputy manager of the Kovalam Ashok Beach Resort in Kerala, India. He taught French at the Alliance Francaise in Kerala, India, from 1988 to 1989. He was the resident manager of the Shivniwas Palace in Rajasthan, India, from 1986 to 1987 and senior lobby manager at the Hyatt Regency Delhi in New Delhi, India, from 1985 to 1986. He also worked as the duty manager for the Gresham Hotel in Dublin, Ireland, from 1983 to 1985.

In 1980, Bhatia received a bachelor of commerce degree from Delhi University in New Delhi, India. He received a diploma in the French language from the Alliance Francaise de Dublin in Dublin, Ireland, in 1983. In 1985, he earned a bachelor’s degree in hotel and catering management from the Dublin College of Catering in Dublin, Ireland, and a bachelor’s degree in management from Trinity College in Dublin, Ireland. He is fluent in French, Hindi and Punjabi.

Bhatia is a certified hotel administrator in the United States and a fellow of the Hotel Catering International Management Association in the United Kingdom.

“Rajiv brings to his job many years of experience in hotel franchising as well as first-hand knowledge of cultural sensitivities and customs throughout the world,” said Ken Greene, the hotel group’s senior vice president, administration & operations. “Rajiv has been an integral part of the success of our international growth and development for the last five years. Throughout his career at Cendant, Rajiv has been instrumental not only in providing superior service and support to our international master franchisees, but in increasing recognition of our hospitality brands in the global marketplace.”

The hotel group of Cendant Corporation (NYSE: CD), based in Parsippany, N.J., is the world’s largest lodging franchisor with 6,617 open hotels representing 552,759 rooms on five continents under the Super 8®, Days Inn®, Ramada®, Travelodge®, Howard Johnson®, Knights Inn®, Villager, Wingate Inn® and AmeriHost Inn® brands. All hotels are individually owned and operated.