eHotelier Newsletter

Dear Friends & Colleagues: Now is the time to register for AH&LA's upcoming Multiunit Forum, occurring May 19-21 at the Fairmont Hotel in New Orleans! The Forum is a unique conference focused on the needs of owners and operators of multiple lodging properties. Attendees will hear from some of the most knowledgeable speakers in the lodging industry. We have limited the attendance of this important conference to senior executives from these organizations who can intelligently discuss key issues that face our industry. Some of the topics to be covered are raising equity, sales productivity, electronic commerce, and other crucial topics. Gary Williams, president of Coakley & Williams Management Company and current chairman of the Multiunit Forum, invites you to be a part of this important event. For more information, visit AH&LA's Web site or contact the Conventions Department at (202) 289-3114 or conventions@ahla.com.

Dear Friends & Colleagues: Now is the time to register for AH&LA's upcoming Multiunit Forum, occurring May 19-21 at the Fairmont Hotel in New Orleans! The Forum is a unique conference focused on the needs of owners and operators of multiple lodging properties. Attendees will hear from some of the most knowledgeable speakers in the lodging industry. We have limited the attendance of this important conference to senior executives from these organizations who can intelligently discuss key issues that face our industry. Some of the topics to be covered are raising equity, sales productivity, electronic commerce, and other crucial topics. Gary Williams, president of Coakley & Williams Management Company and current chairman of the Multiunit Forum, invites you to be a part of this important event. For more information, visit AH&LA's Web site or contact the Conventions Department at (202) 289-3114 or conventions@ahla.com.

Back in Washington, AH&LA, in conjunction with the Travel Business Roundtable, worked with Assistant Majority Leader of the Senate Harry Reid (D-Nev.) on a letter Sen. Reid sent to James Ziglar, commissioner of the Immigration and Naturalization Service (INS). The letter to INS questions a proposed cut in the default time period allowed for B-2 visas, which constitute the majority of tourist visas, from six months to just 30 days. In his letter, Sen. Reid enumerated several concerns about this new proposed rule. He pointed out that the rule would undermine foreign travelers' confidence in coming to the U.S. and being allowed to stay for more than 30 days. The proposed rule states that "where there is any ambiguity whether a shorter or longer period of admission would be fair and reasonable under the circumstances" the tourist visa would only be granted for 30 days.

Sen. Reid also suggested that the proposed rule misses its target of protecting the U.S. from further terrorist attacks. He noted, "Someone wishing to harm the U.S. would overstay a 30-day visa as readily as a six-month visa, and nothing in the proposed rule would appear to give the INS additional tools or resources to discover and track such people."

Finally, Sen. Reid addressed the economic impact of this proposed rule. He stated that the Department of Commerce projects that foreign travelers will spend an average of $105 a day this year. Furthermore, in 2000, New York City saw 12 percent of its foreign leisure travelers stay for more than 30 days. If enacted, the proposed rule would cost New York City $337.4 million in revenue from these visitors.

AH&LA will continue to work for a safe and plausible border security plan that will encourage international travelers to return to the U.S.

Joseph A. McInerney, CHA,
AH&LA

SRS-WORLDHOTELS OFFER DISCOUNTS OF UP TO 50% IN 115 HOTELS IN 70 LOCATIONS THIS SUMMER

Hong Kong, May 6, 2002 - SRS-WORLDHOTELS, one of the world’s leading and most dynamic hotel marketing and representation consortia, has launched its WORLDSAVER summer rates, offering worldwide discounts of up to 50% as well as the chance to win free-stay prizes at participating SRS-WORLDHOTELS worldwide.

The special WORLDSAVER rates, which are all published on the SRS-WORLDHOTELS website, www.srs-worldhotels.com - are available from July 1, 2002 to August 31, 2002. No minimum stay is required to take advantage of these special rates.

During the WORLDSAVER summer special promotion, hotel guests will also be awarded a bonus of up to 1500 frequent flyer programme miles per booking with participating airlines, as well as room upgrades (subject to availability). Breakfast is included in the price throughout Europe and the Middle East.

Travel agents who book guests for at least one night at one of the member properties taking part in the WORLDSAVER programme during the promotional period are also eligible to enter a competition to win one of a series of weekends for two at one of the participating hotels.

To enter, travel agents simply need to include the official confirmation code of the reservation, name of the booked hotel and the return address in an email to worldsaver@srs-worldhotels.com.

Each reservation makes them eligible for a separate entry, thus increasing their chances of winning. The winners will be drawn from all entries in mid-September.

The special WORLDSAVER rates are all also commissionable to travel agents at commissions ranging from ten and fifteen percent.

WORLDSAVER participating hotels are located throughout the world in 70 different locations including Amsterdam, Athens, Bangkok, Barcelona, Berlin, Budapest, Buenos Aires, Dubai, Dublin, Hong Kong, Lisbon, London, Madrid, Milan, New York, Paris, Porto, Prague, Riga, Rome, Shanghai, Stockholm, Taipei and Vienna. Participating hotels are members of the internationally renowned SRS-WORLDHOTELS Deluxe Collection, First Class Collection and Comfort Collection categories.

The participating frequent flyer programs are: ANA Mileage Club, Lufthansa Miles More, Thai International’s Royal Orchid Plus, United Airlines Mileage Plus and Varig Smiles.

Currently, SRS-WORLDHOTELS has more than 400 member hotels in its portfolio, representing over 70,000 rooms in 65 countries and 250 destinations worldwide. It is the only hotel marketing and representation group with three distinct membership categories: the exclusive Deluxe Collection, the First Class Collection and the Comfort Collection. SRS-WORDLHOTELS’ Asia/Pacific operation has grown dramatically to 20 staff in four offices around the region and the company has over 50 properties in Asia/Pacific.

TRUST International, a member of the international media corporation Bertelsmann Group and a global provider of reservations technology for the hospitality industry, announced a 10.39% increase in electronic bookings by the "4 and 5 star" hotel segment for the month of April 2002 compared to April 2001. (5/9/2002)

Although the luxury hotel segment has suffered the worst financial setbacks in the lodging industry, the company forecasts the luxury hotel market rebounding quicker than expected, even outperforming last year's numbers.

Industry statistics indicate that the luxury hotel market in the U.S. has suffered double-digit losses in room revenues and has failed to recoup even as the overall industry is showing signs of economic improvement.

"2001 was a difficult year for the hospitality industry and with that in mind, it is very encouraging to see a rebound in GDS bookings for our upscale/luxury market," commented Connie Rheams, president of TRUST International, Americas. "I foresee strong growth throughout 2002 as GDS continues to be a vital distribution channel for hotels worldwide."

Supporting Connie's expectations for continued growth is the positive results from HEDNA's (Hotel Electronic Distribution Network Association) annual survey, Global Distribution System Hotel Reservations, which reports that despite the challenges of 2001, GDS delivered 46,753,000 net reservations for hotels - an increase compared with 1999 levels (43,781,000) but still a 4.2% decline from 2000 levels (48,787,000).
www.hedna.org
www.trustinternational.com

We were invited to participate in the Tourism Industry Association of Nova Scotia (TIANS) annual conference in November; our topic being “People Make the Difference”. Our trip to Halifax resulted in two incidents that reinforced this point far better than any example we could have created.

We arrived at Dulles Airport at 5:15AM for a scheduled 8:00AM departure because current policy requires arrival three (3) hours prior to international flights.

The most noticeable thing was the closed and dark check-in counter; no employees were present and there were no signs indicating hours of operation. One other passenger was already in line.

Nothing happened for nearly one hour except the arrival of several more passengers who joined us in line. At approximately 6:15AM airline employees began to appear at or near the counter. They entered and exited the door behind the counter; they walked past the line of waiting passengers; one actually turned on the lights. No employee acknowledged the passengers; no one offered any information on when the counter might open. All appeared totally oblivious to us. I could tell from facial expressions and overheard comments that the other passengers shared our feeling of frustration and anger.

I do not know much about running an airline, but it seems logical that employees should be required to arrive at the same time as passengers. A small sign announcing when the counter would open would also have been a big help. A greeting or a word from one of the employees would also have been nice.

Shortly before 6:30AM, a young man arrived at the counter, opened his station, and began assisting passengers. When we approached the counter, he was very efficient, greeted us cordially and handled the transaction very professionally. He smiled, addressed us by name, and offered a very simple apology for our long wait. That was enough. He did not make excuses. He did not apologize to excess, which I would have considered meaningless at the time. He just did his job very well.

His professional attitude and conduct did a lot to ameliorate the previous experience and dispel most of our anger. His actions did indeed make a difference.

When we arrived in Halifax and found we had some free time in the afternoon, we visited the Maritime Museum of the Atlantic. During my years at AAA, I visited hundreds of museums, large and small. My major criticism of museums concerns the staff. I have met many very professional and knowledgeable attendants; I have also met many who appeared to have very little knowledge of and even less interest in the exhibits. To be candid, I was not particularly anxious to see one more museum, but my business partner insisted.

Rick, at the Maritime Museum of the Atlantic made our visit there very enjoyable and informative. He was knowledgeable, cordial, professional, and very enthusiastic. He not only was able to answer our questions; he offered additional information and appeared to really enjoy his work. Rick certainly made a very positive difference in our impression of the museum and Halifax, Nova Scotia.

These experiences reinforce our position that people make the difference. Ensuring that your staff appreciates this simple fact will guarantee that your guests see the difference.

SIX CONTINENTS HOTELS IS FIRST HOTEL COMPANY TO GUARANTEE THE LOWEST INTERNET RATE FOR HOTELS WORLDWIDE

Initiative Builds Consumer Confidence by Assuring Best Online Rate or 10 Percent Off Lowest Price Found

Six Continents Hotels, Inc., the world's leading global hotel group, which owns, operates or franchises more than 3,200 hotels and over 510,000 guest rooms in close to 100 countries and territories, today announces the Lowest Internet Rate Guarantee.

The consumer promise states that every hotel reservation booked directly through a Six Continents(TM) Hotels web site is guaranteed to have the lowest rate publicly available on the Internet for that hotel. If a lower rate is identified within 24 hours on another web site for the same hotel and accommodations, and for the same dates, Six Continents Hotels will honor that rate plus an additional 10 percent discount. The Guarantee is offered for any Six Continents Hotels brand worldwide, including Inter-Continental, Crowne Plaza, Holiday Inn, Express by Holiday Inn and Staybridge Suites.

"The Lowest Internet Rate Guarantee is unique to the industry, and one that reflects our commitment to preserving the online consumer's trust in our brands," said Tom Seddon, senior vice president of strategic services, Six Continents Hotels. "In today's economy of shrinking budgets, we understand the value of online price-comparisons. But that's what this initiative is about - restoring guests' confidence that they will always get the best possible rate when booking directly with us, ultimately instituting their continued return to our brands."

According to an April 2002 Forrester Research report, travelers prefer booking from brands they know and trust. Only one-fifth of travelers are willing to risk booking with an online consolidator. In addition, 68 percent of U.S. leisure travelers who book hotels online say that their assurance of getting the lowest possible price from a web site will encourage them to continue booking hotel reservations online.

The Lowest Internet Rate Guarantee is one in a series of online initiatives from Six Continents Hotels to secure the confidence of its consumers. Last month, the company launched 21-Day Advance Purchase Rates and last-minute travel deals through Weekend WebSavers. Like the Guarantee, these programs assist travelers in making affordable hotel reservations that maximize their travel budgets.

For more information about the Lowest Internet Rate Guarantee, and for Terms and Conditions, please visit any of the Six Continents Hotels brand web sites or call the Lowest Internet Rate Guarantee Telephone Number: U. S. and Canada - 1-800-447-2981; Europe, Middle East and Africa - call the nearest Toll-Free Worldwide Reservation Office and request to be transferred to Guest Relations (Europe & Israel only); All other countries - Contact the nearest Worldwide Reservation Office.

Each Six Continents Hotels branded web site (Inter-Continental (www.intercontinental.com), Crowne Plaza (www.crowneplaza.com), Holiday Inn (www.holiday-inn.com), Holiday Inn Express (www.hiexpress.com) and Staybridge Suites (www.staybridgesuites.com)) communicates the guarantee on its established page for reservations.

Starwood Hotels & Resorts Worldwide has also confirmed that they are offering the same incentive effective June 1. Starwood operates Westin, Sheraton, Four Points, St.Regis, Luxury Collection and W-Hotels. However, Starwood Hotels & Resorts Worldwide did not comment on the travel agent commission issue at this time. With Six Continental and Starwood Hotels & Resorts offering competitive rates, travel this summer is expected to increase with bargain hunters taking advantage of the price war between these two hotel chains

Guarantee does not include rates that have been negotiated by the hotel with corporations or travel agencies; only publicly available rates apply.

Guarantee does not include websites or rates where the hotel brand and specific hotel are not known until the booking is made. Guarantee does not include websites or rates that "package" travel, entertainment, hotel, and/or food components such as airfare + hotel stay, hotel stay + car hire, hotel stay + restaurant voucher or similar packages under a single "bundled" price.

If people book a room through the "Lowest Internet Rate Guarantee" search on any Six Continents Hotels website and then, on the same day, find a lower rate that is viewable and bookable on another website for the same hotel and accommodation, and for the same dates, and advise Six Continents Hotels within 24 hours of booking the room, Six Continents Hotels will honour that rate for the nights for which the lower rate was found, plus give an additional 10 per cent discount off that rate upon verification. Rooms on other websites must be publicly available and bookable on the Internet at the time of verification.

Six Continents(TM) Hotels, the hotel business of Six Continents PLC of the United Kingdom (LSE:SXC)(NYSE:SXC), owns, manages, leases or franchises more than 3,260 hotels and 514,000 guest rooms in nearly 100 countries and territories.

The following are some of the service marks owned by Six Continents Hotels, Inc., its subsidiaries or affiliates: Holiday Inn(R), Crowne Plaza(R), Express by Holiday Inn(TM), Holiday Inn Select(R), Holiday Inn Garden Court(R), Holiday Inn SunSpree(R) Resort, Staybridge Suites(R) by Holiday Inn, Holidex(R), Priority Club(R), Inter-Continental(R), Forum(R), Parkroyal(R), and Centra(R).

Six Continents Club(R), Six Continents(TM), and 6 Continents(TM) are service marks of Six Continents PLC and used under license.

Six Continents Hotels, Inc. offers information and reservations capability on the Internet - www.sixcontinentshotels.com, www.intercontinental.com for Inter-Continental Hotels and Resorts, www.crowneplaza.com for Crowne Plaza Hotels and Resorts, www.holiday-inn.com for Holiday Inn hotels, www.hiexpress.com for Express by Holiday Inn hotels, www.staybridge.com for Staybridge Suites by Holiday Inn, and www.priorityclub.com.

Starwood's "Best Rate Guarantee" pledges that if travelers find lower published rates for Starwood's hotels in the United States and Canada available through any other online distributor, Starwood will match the lower rate and offer an additional 10 percent off that price.

"In the past, Starwood's websites have not always had rates that consumers could trust," said Robert F. Cotter, Starwood's Chief Operating Officer. "Travelers could, on occasion, find lower rates available through other channels. Starwood's 'Best Rate Guarantee' will ensure rate integrity on Starwood's branded websites and provide our guests assurances that the rates they find on our websites are the best published rates available anywhere."

With the launch of its "Best Rate Guarantee," Starwood guests can have confidence in the prices found through Starwood's website pricing and continue to enjoy the unmatched service available through Starwood's branded websites. In addition, Starwood Preferred Guest members receive a 500-point bonus for booking through the Starwood websites.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 740 properties in more than 80 countries and 110,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchiser of hotels and resorts including: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwood.com

Please contact Starwood's new, toll-free media hotline at (866) 4-STAR-PR (866-478-2777) for photography or additional information.

(Reuters) - Luxury hotelier Four Seasons Hotels Inc. (FS) (FSH), a gauge of the top-end travel sector, reported on Friday a slump in first-quarter profits because of weak business travel spending spurred by the weak U.S. economy and the impact of the Sept. 11 attacks.

Four Seasons, which still has not recovered from the impact of the Sept. 11 attacks in the United States, reported a profit of C$7.7 million ($4.9 million), or 22 Canadian cents a share, for the quarter ended March 31.

That was worse than a profit of C$17 million, or 49 Canadian cents a share during the first quarter of 2001.

Revenue at Four Seasons, which operates more than 50 hotels and resorts around the world, fell to C$64.6 million from C$78.8 million in the year-ago quarter.

Four Seasons stock has risen about 2 percent from its Sept. 10 close of C$73.30, closing at C$75.05 a share on Thursday on the Toronto Stock Exchange. They have sharply underperformed Fairmont Hotels and Resorts Inc. (FHR), whose shares have risen nearly 40 percent from their Sept. 10 close of C$31.97 a share.

ORIENT-EXPRESS HOTELS ANNOUNCES FIRST QUARTER RESULTS

Orient-Express Hotels Ltd., luxury hotel, restaurant, tourist train and river cruise ship operator (NYSE: OEH) (http://www.orient-express.com ) today announced its results for the first quarter ended March 31, 2002. Net earnings on common shares were $ 0.4 million ($ .01 per common share), compared with $ 4.9 million ($ 0.16 per common share) in the first quarter of 2001. Revenue was down 7% to $ 53.7 million from $ 57.9 million in the year earlier period.

Mr. James B. Sherwood, Chairman, said that the decline in revenue and hence net income had been primarily due to the lingering effects of the September 11th terrorist attacks in the U.S. He indicated that same store RevPAR in the first quarter was down 12% compared with the prior year period, while in the fourth quarter of 2001 it was down 17% compared with the fourth quarter of 2000.

Mr. Sherwood said that Orient-Express Hotels' first quarter is the seasonal low earnings period for the year. He said that results were 3 cents per share ahead of "Street consensus" and reflected the resilience of the company in the face of unexpected adversity such as September 11th.

He said that recent devaluations of the South African Rand and Brazilian Real had also reduced first quarter profits when translated into U.S. dollars, despite improved occupancies over the year earlier period. Local currency rates are being increased in South Africa and Brazil to ensure profits on translation are maintained at pre-devaluation levels, however, there is a lag effect because of booking commitments in local currencies made prior to the devaluations.

Mr. Sherwood summarized the results as follows:

EBITDA was a loss of $ 0.5 million compared with a loss of $ 0.1 million in the first quarter of 2001. Mr. Sherwood noted that the Euro has been gaining in value since the end of the first quarter, which will increase U.S. dollar profits on translation from local currencies as the hotels enter their main earnings period of the year.

EBITDA was $ 5.5 million in the period, down $ 1.8 million from the first quarter of 2001. The Inn at Perry Cabin was closed for the entire period for a major rebuild, accounting for about $ 0.3 million of the decline. La Samanna was badly affected by September 11th, accounting for $ 1 million of the decline.

EBITDA was $ 1.7 million, the same as the prior year period. Despite improved occupancy and local currency revenue, the decline of the value of the South African Rand again held back earnings improvement in U.S. dollar terms.

EBITDA was $ 3.1 million compared with $ 3.5 million in the year earlier period. The decline in the value of the Brazilian Real was responsible for the lower earnings in U.S. dollar terms.

EBITDA was a loss of $ 0.2 million, compared with a profit of $ 1 million in the year earlier period. The Bora Bora Lagoon Resort was closed during the first quarter of 2002 for renovation while travel to Australia was impacted by September 11th.

EBITDA was $ 1 million, unchanged from the prior year. '21' Club has made a good recovery from September 11th.

EBITDA was a loss of $ 0.7 million compared with a profit of $ 0.1 million in the prior year period. The Road to Mandalay in Burma was badly affected by cancellations following September 11th. Bookings for this division have recovered for the balance of the year and indeed in the case of the three European trains, are ahead of 2001 at this time.

Mr. Simon M.C. Sherwood, President, highlighted that the company had decided to take the Inn at Perry Cabin, Bora Bora Lagoon Resort, the Villa San Michele and the main building of the Hotel Cipriani off line in the first quarter for capital improvement as part of the company's $ 30 million spend this year. While this reduced first quarter earnings it is management's view that in light of September 11th this was the least costly way to complete the work, affording greater earnings growth later in the year.

He indicated that same store RevPAR in the quarter was $ 154, compared with $ 175 achieved in the first quarter of 2001. He said that leisure traveler demand seems to have recovered for the company's properties but business traveler demand was still weaker than normal, not helped by poor performance in the media, telecoms and internet industries, let alone Enron.

Simon Sherwood said that four excellent acquisitions had been completed in the first quarter: La Residencia in Mallorca, Spain (63 keys), Le Manoir aux Quat' Saisons in Oxfordshire, England (32 keys), Maroma Resort & Spa on Mexico's Yucatan coast south of Cancun (57 keys) and the four brasserie chain Le Petit Blanc in Oxford, Cheltenham, Birmingham and Manchester, England (600 covers) serving reasonably priced high quality French cuisine to the younger market. In the case of Maroma 75% of the owning company was acquired while in the case of Petit Blanc 50% was acquired. The total investment was $ 47.5 million. He indicated that all these acquisitions should add to profits from the second quarter this year. Further acquisitions are currently in the offer stage.

Commenting on the outlook for the year, he said "assuming there is not another disruption to international travel, all hotel companies will have excellent third and fourth quarter results when compared with last year. We will also have the benefit of our capital expenditure this past winter, rate adjustment in countries where currencies have devalued against the dollar, a possible stronger Euro and the earnings from our four acquisitions early in 2002. Against this must be set a possible reduction in Americans travelling abroad due to security concerns and the weaker business traveller environment. On balance, however, we believe 2002 will be a satisfactory year for the company."

This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding earnings growth, investment plans and similar matters that are not historical facts. These statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause a difference include, but are not limited to, those mentioned in the press release, unknown effects on the travel and leisure markets of terrorist activity and any police or military response, varying customer demand and competitive considerations, realization of bookings and reservations as actual revenue, inability to sustain price increases or to reduce costs, interest rate and currency value fluctuations, uncertainty of negotiating and completing proposed capital expenditures or purchase transactions, adequate sources of capital and acceptability of finance terms, possible delay in reopening properties closed during the first part of the year, shifting patterns of business travel and tourism and seasonality of demand, global and regional economic conditions, and legislative, regulatory and political developments. Further information regarding these and other factors is included in the filings by the company and Sea Containers Ltd. with the U.S. Securities and Exchange Commission.

Orient-Express Hotels will conduct a conference call today, May 9, 2002 at 10:00 AM (EDT) which is accessible at 212-896-6049. A re-play of the conference call will be available until 5:00 PM (EDT) Friday, May 24, 2002 and can be accessed by calling 800-633-8284 (International dial-in : 858-812-6440) and entering reservation number 20567516. A re-play will also be available on the company's website: http://www.orient-express.com .

Newsletter - May 13, 2002