Global Hospitality News - ARCHIVE 2003

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News Archive , May 2003

May  1-15, 2003

May 1, 2003

People should be travelling  - -  WHO

A message from Pacific Asia Travel Association (PATA) President and CEO, Mr. Peter de Jong sent to all PATA members:-  

I want to share with you my personal impressions of a presentation by Dr. David Heymann, Executive Director of the World Health Organization (WHO), which I attended on April 28 in Bangkok. Dr. Heymann was in Bangkok to address the heads of state of ASEAN (Association of Southeast Asian Nations) plus China (PRC) and Hong Kong SAR on the SARS situation facing the region. At a time when the SARS paranoia is having a devastating effect on our industry, I felt it important to listen to this authoritative WHO spokesperson who came to share the latest findings on SARS with Asia's government leaders, and report these findings to you, our members.

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IH&RA Foundation for the future awards bursaries to promising young professionals

Eight young hospitality professionals from China, India, Romania and the Caribbean have won places in  the 2003 Summer Scholarship Programme run by the IH&RA (International Hotel & Restaurant Association) Foundation for the Future. This year`s winners -- chosen from a field of 34 candidates -- come from companies large and small and will follow summer courses at Cornell University, Ecole Hoteliere Lausanne, Hotelschool the Hague, and Johnson & Wales University.

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Whitbread beats the gloom in hotels  

Leisure group Whitbread reported a modest rise in full-year profits growth despite suffering along with the rest of the industry in its Marriott 4-star hotels. Strong results from its budget Travel Inns, David Lloyd Leisure and Brewers Fayre estates helped offset flat profits at Marriott, where sales slipped 3% amid tough conditions in London. Chief executive David Thomas said Marriott had outperformed the doom-laden upmarket hotels sector.  

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National Cornell study finds most hotels making no changes in safety, security staffing or procedures in year after 9/11  

Most hotels made no changes to safety and security staffing or procedures in the year following the Sept. 11, 2001, terrorist attacks, possibly because they already were in good shape. Exceptions: modest improvements to staffing and procedures were made at hotels in New York, New Jersey and the central southwest. The news is from a national survey of hotel managers conducted at Cornell University's School of Hotel Administration. Professor Cathy Enz, executive director of the Center for Hospitality Research at Cornell's Hotel School, in conjunction with Smith Travel Research, surveyed 1,033 hotel managers throughout the United States shortly after the attacks in 2001 and then surveyed 492 general managers in October 2002. 

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Wyndham seeks fresh financing

Struggling Wyndham International Inc. has become the latest hotelier tapping asset-backed securities to solve financing problems. Lehman Brothers Inc. has agreed to provide $425 million in floating-rate financing for Wyndham. Of this amount, $300 million to $350 million is secured by 17 Wyndham hotels, according to the Commercial Mortgage Alert. The remainder will come from a mezzanine loan. Wyndham's financing move follow's last week's close of a $150 million loan to Irving, Texas-based Felcor Lodging Trust Inc. from J.P. Morgan Chase & Co. secured by 10 Felcor hotels.  

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New figures confirm tough times ahead for Australian Tourism

The Australian tourism industry had a tough first quarter, with international arrivals in February and March down compared to 2002 , according to new figures released, Australian Tourist Commission (ATC) Managing Director, Ken Boundy said.
"Despite a stronger start to the year, with international visitor arrivals for January up by 5 per cent, arrivals for February and March* declined by two per cent and 11 per cent respectively, signalling the start of a tough period for the sector," Mr Boundy said.

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Latin America the percentage star for NH Hoteles

e-Tid.com  -  Madrid-quoted NH Hoteles has reported turnover jumped 19.6% to €203.9m for the quarter to end-March 2003, from €170.4m a year earlier. The total was boosted by €42m revenues from45-strong German hotel chain Astron , which NH acquired for €130m in February 2002. Excluding Astron and new hotels opened over the past 12 months, sales totalled €178.8m, 5.6% below the same period of last year.
Occupation levels across the group fell 1 point to 57%, while revenue per available room (revPAR) dropped 5.5%.

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Best Western International Announces Q1 Results

Best Western International concluded the first fiscal quarter with the addition of 78 new hotels to the brand. The company's development team successfully signed 37 North American and 41 international properties through the first three months of the period ending Feb. 28.  In North America, the 37 hotels contributed an additional 2,996 guest rooms to the brand.  Key additions increased representation in the brand's target markets which are downtown, airport and business corridors.  

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May 2, 2003

New chief exec for Macdonald Hotels

Macdonald Hotels has appointed Patrick Dempsey as its new chief executive, allowing founder Donald Macdonald to become executive chairman. Dempsey, 44, joins from Compass UK where he is chief exec of its fine dining division Restaurant Associates. Before Compass he was MD of Posthouse and is acknowledged to have been behind its successful repositioning as a mid-market brand before it was sold to Bass, as was. Before Posthouse he spent twenty years with Forte Hotels.

War, economy hit Host Marriott results   

Host Marriott Corp. reported a widened loss in the first quarter as the war in Iraq kept travel slow and the weak economy kept both business and leisure customers at home, the largest U.S. hotel owner said on Wednesday. The company also forecast a loss for the second quarter and full year and warned it was unlikely to pay shareholders "a meaningful dividend" because of the expected weakness.  

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Hyatt's goal is simple: differentiate the  sub-brands

With Hyatt International, Grahame Carder’s mission is simple: To communicate the differentiation in its sub-brands from the Park to Grand, Regency and Resorts. The vice president of marketing acknowledges that the company is facing an issue of branding as it grows its four brands in the region. “Over the next three years, you will see Hyatt communicate, hopefully, articulately and credibly, the issue of sub-brands which are fundamental to our expansion,” he said.  

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Le M?ridien chiefs prepare rescue plan

Caterer.com   -    Bosses at Le M?ridien are to present a rescue plan to the hotel chain's bankers next month after spiralling debts forced investors to hand over control of the group to its lenders. The move last week came after a collapse in trading left Le M?ridien with a value of just ?700m and debts of ?1b.

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Arabella Sheraton interested in Steigenberger Hotels

German-American joint venture Arabella Sheraton is interested in buying Steigenberger Hotels. Industry sources confirmed to FVW that the Munich-based group was ready to pay EUR 150 million for the Steigenberger hotel operating company. This manages 78 properties, mostly in Germany, operating under the Steigenberger, Maxx, Esprix and Intercity brands. 

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Australians lured by one-off travel specials

Australian travellers will have access to an influx of domestic and international travel specials, as suppliers strive to overcome the ongoing effects of the SARS virus. Australia’s leading last-minute accommodation service,Wotif.com, suggests accommodation discounts in excess of 50 per cent will be available over the coming months, as suppliers aim to fill rooms left unsold as a result of the dramatic drop in international travel. Domestic flight providers moved early, with QANTAS’ ‘Massive Million Seat Sale’ and Virgin Blue’s ‘Out of the Blue sale’ offering millions of post-Easter seats at discounts of up to 45 per cent on popular domestic routes

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Global Finance readers select Shangri-La as the best hotel chain in Asia/Pacific

Shangri-La  Hotels  and  Resorts  was  named   the  "Best Hotel  Chain in Asia/Pacific" for the second year in a row by readers of Global Finance. Makati Shangri-La Hotel, Manila; the Shangri-La Hotel, Kuala Lumpur; and  Pudong  Shangri-La,  Shanghai  also  garnered  honors, each winning "Best Hotel" in their respective cities for the quality of their facilities and exemplary service. The award, part of the magazine's "World's Best Hotels and Airlines" survey, appears in the June issue of the publication.  

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Sol Meli? open for alliances

Spanish hotel chain Sol Meli? is open for strategic alliances to expand its presence in the European market, according to CEO Sebasti?n Escarrer. The family-owned, listed company, number three in Europe, was particularly interested in new locations in major cities and in improving its position in Germany, France and Britain, he told FVW in an exclusive interview. "We will increasingly concentrate on strategic alliances in important markets as well as in regions where we need to catch up," he said.  

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London Enews April 25 2003 – HVS International

Summary:  Maritim Adventures - The Cream From Devon And Guernsey - Ritz Cracker - There's No Hiding From Kempinski - Marriott's On Fire - Less CHI For CHE - New Name, Old Woes - Raffles Held By War - Introducing A New Species: EuroTulip - Up The Palace - The Case Of The Hotel Transaction - Signing On - Make Your Stay In Estonia A Unique One - A Liking For Lithuania - Oil And Water - Dublin Demolition

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BIL ups offer for Thistle

Caterer.com  -  BIL International, hotel group Thistle’s largest shareholder, has increased its bid for the company by ?72.4m. BIL, which already owns 46% of Thistle, is now offering ?627.1m for the remaining shares of the beleaguered hotel group. In March, BIL offered ?554.7m for the company. Thistle rejected the last bid as “wholly inadequate” and opportunistic.  

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Good future forecast for club hotels

Club hotels have still got good potential for future growth in both the premium and mass market segments, according to top hotel managers. New trends, quality services and value for money will be the keys to success, they predicted in an FVW special discussion. The German market for club holidays has a total potential of 4.5 million clients, including 1.5 million in the premium segment, said Karl Pojer, managing director of the TUI-owned Robinson chain. Last year some 1.2 million clients booked a club holiday, including 400,000 in the premium segment. 

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All-Hotels claims trend bucking  

Hotel bookings website All-Hotels.com claims to have bucked the trend of falling room rates, while recording a 50% year-on-year bookings rise between March and April despite tough market conditions.The company, part of UK travel group Online Travel Corp, recorded an average London room rate during the period of ?107, which it said contrasts to the recent trend of falling revenues in the capital, with average room rates during March costing ?88 according to a survey from hotel consultant PKF.  

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Upturn hopes for German tourism industry after March sales slump

The German tourism industry hopes the end of armed hostilities in Iraq will generate a recovery in the poor summer 2003 sales to date. Business in March, however, suffered from tension in the Middle East region followed by the outbreak of war, according to the latest monthly survey of some 1,780 German travel agencies by the TATS organisation. Leisure travel sales slumped 27.6%, airline ticket revenues dropped 19.6%, leaving overall turnover down 22.2%. These heavy declines were on previous year levels which themselves represented sharp declines on 2001. The cumulated values for the first quarter of 2003 showed overall turnover down 10.5%, including a 13% fall in tourism sales and 8.5% drop in airline ticket revenues.

May 5, 2003

BIL clinches Thistle Hotels

Singapore investment group BIL International Ltd. said Thursday, May 1, it has received sufficient acceptances of its offer for Britain's Thistle Hotels plc to force the hostile bid through. BIL, which already owns 45.6% of Thistle, said it has received acceptances on an additional 7.1% of the hotel operator's shares, giving it of a 52.7% block of shares.  

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Thistle set for hotels sell-off

SIX luxury landmark London hotels, worth up to ?700m, could come on to the market this summer after owner Thistle Hotels was sold today for ?627m. The London hotels - including the Royal Horseguards in Whitehall - were put up for sale as part of a defence strategy against a 130p-per-share bid for the group from Singapore-based shareholder BIL, which went unconditional today. Potential buyers for the six hotels include Blackstone, the private equity group that owns the Savoy. Thistle's 18 hotels give a net asset value per share of 211p. The group is due to delist and go private.  

Has Guy Hands lost the Midas touch?

Le M?ridien setback has tarnished his image, but former golden boy is philosophic - For years he was the City's golden boy, the man with the Midas touch. Every deal was a winner, every year saw another multimillion pound pay packet. Guy Hands was the whizz-kid whose use of clever financial engineering at Nomura International helped the Japanese bank snap up lowly rated assets including the William Hill betting chain and Annington Homes, the owner of thousands of former Ministry of Defence houses. A year ago he branched out on his own, setting up Terra Firma Capital Partners. This included a deal to manage the transactions he had undertaken at Nomura while also seeking to raise fresh funds for new ventures. By then even his wife had got in on the act. Julia Hands had become chairman and chief executive of Hand Picked Hotels, a group of 15 country house hotels bought with the couple's own money. Now though a question is being asked that would have been unthinkable only a few years ago. Has Guy Hands lost that Midas touch?

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SARS scare: Hong Kong hotels hit hard

Anybody for a free ride in a Rolls-Royce? The Peninsula Hotel, long a haunt for the rich and famous, prides itself on a fleet of 13 Rollers used to pick them up at the airport or take them around Hong Kong. But the Rolls-Royces aren't going much of anywhere these days, like the rest of Hong Kong's luxury hospitality industry that's been hit hard by the SARS crisis. Occupancy rates at Hong Kong's five-star hotels have plunged to between 8 per cent and 10 per cent since the SARS outbreak, according to James Lu, executive director of the Hong Kong Hotels Association.  

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More discipline needed to control events: Carder

The tourism industry needs to become stronger and more disciplined in every aspect if it is to control events and not allow events to control it, as is currently happening. Vice president of marketing for Hyatt International, Grahame Carder, said current events such as the SARS crisis had resulted in “an element of confidence and trust vanishing from the excitement of travel”.  

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Singapore Visitor Arrivals from 15 - 21 April, 2003 down 71%

AsiaTravelTips.com  -  During the period 15-21 April, Singapore visitor arrivals recorded 42,300, a decline of 71% over the same period last year. Countries like Thailand, Japan, USA, Malaysia and P R China declined by more than 75% in arrivals. Singapore Tourism Board said that countries' travel advisories or alerts and the cancellation of events contributed to the decline in visitor arrivals (65% or 285,000) over the period of 1-21 April. During this period, Thailand, Hong Kong SAR, USA, Japan and Malaysia recorded the highest percentage decline.

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New Zealand: The conclusion of the cup

After just over five months, the America’s Cup drew to a close on the 5th March 2003, with the defeat of Team New Zealand by the Swiss Alinghi Team. Whilst New Zealand may not have had success on the seas this time around, not all was lost, with hoteliers reporting strong performance during this period. Over the last six months (October 2002 to March 2003), New Zealand has seen revPAR (revenue per available room) increase by 17 percent to NZ$104 compared to the same period the prior year. 

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Internet sales estimated at 9% of German tourism turnover

Online distribution could have reached as much as 9% of total German leisure travel sales, according to a new survey. Munich-based Ulysses Management claimed that Internet sales soared to EUR 3 billion last year from EUR 2.1 billion in 2001. This would represent 9% of a total market of some EUR 33.1 billion. 

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New hotels add to accommodation options at Dubai World Trade Centre

With two new Accor Group hotels set to open their doors for business in mid-July as part of the Dubai World Trade Centre (DWTC) complex, the range of accommodation options available in and around the DWTC's Dubai International Convention Centre (DICC) is set to increase significantly. “With the DWTC, the most sought after conference and exhibition venue in the region, the need to provide ideally located accommodation options within the complex is a priority. With the Novotel World Trade Centre and Ibis World Trade Centre hotels scheduled to open soon, that need will be more than fulfilled,” said DWTC Director General, Mubarak bin Fahad.

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Small hotels bear the brunt of Bali discounting

Early signs are emerging that people may be overcoming their fears of SARS and are ready to travel to specific destinations again. “This week I have had more bookings than cancellations, so I am hopeful that people are weighing up the risks and deciding that places such as Bali are safe from SARS,” said Michel Vivier, general manager of the four-star Novotel Benoa and Accor Asia/Pacific regional GM operations, East Indonesia. New and reconfirmed bookings were coming mainly from intra-Asia and from Europe, he said.  

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May 6, 2003

Hilton and Marriott keen to takeover  troubled Le Meridien

Hilton and Marriott, the international hotel groups, are each said to have approached banks controlling Le Meridien with proposals to take over the management of their troubled rival. The Sunday Times revealed last week that banks had taken control of Le Meridien, and its equity shareholders had written off the value of their stakes.

Hilton and Marriott would be keen to add the chain to their own portfolios but a deal could prove too complicated to clinch because of the number of banks involved. "Doing a deal would be like trying to grab a bar of soap," said one banker.

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Bullish Whitbread to step up expansion

Whitbread said yesterday it would step up the pace of rolling out brands such as Travel Inn and David Lloyd Leisure as it unveiled a strong rise in underlying profits. The leisure group rose above the current war-inspired gloom in the hotels market to paint a buoyant picture of recent trading across most of its businesses. Marriott, its four-star hotels group, was the one exception with a 4 per cent decline in like-for-like sales in the past two months. David Thomas, the chief executive, said: "It hasn't been the best environment to trade in, with the build up to war in Iraq, the war itself and the occasional Sars [severe acute respiratory syndrome] threat thrown in. [During the war] there was almost a cessation of business activity and inbound US tourism – the only people flying West to East had uniforms on."  

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Czech Hoteliers swim upstream  

While the Czech Republic is struggling with a slump in foreign visitors, accommodation capacities are still growing. There are still some niches in the market, but in the tough fight for clients, hoteliers are finding an improved promotional campaign is key.  

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Kerzner Announces First Quarter Results 

Kerzner International Limited reported recurring net income for the first quarter of 2003 of $32.0 million as compared to $31.8 million for the same period last year. On this basis, net income per share for the quarter was $1.12, in line with the same period last year. Butch Kerzner, President of the Company, commented, "I am very pleased to report that the Company was able to maintain its recurring EPS. Atlantis continued to outperform the industry despite a downturn in the travel market that was exacerbated in the quarter by world events. Paradise Island's gross revenues exceeded the same period last year. We maintained revenue per available room ("RevPAR") at Atlantis indicating that the property continues to demonstrate resilience against the backdrop of a difficult travel market."

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World Travel & Tourism Council (WTTC) Launches Security Action Plan 

The World Travel & Tourism Council (WTTC) today announced that it has developed an Action Plan, together with leading security experts Objective Team, to limit potential damage wrought by terrorism - and ultimately to defeat it. At a Security Forum, hosted by WTTC Member organization Accor, at the Sofitel St James in London, Jean-Claude Baumgarten, WTTC President said: "The Action Plan will help Travel & Tourism in two main ways; it contains initiatives to counter the threat of terrorism and its implementation will put minds at ease. The resilience of the travelling public should not be underestimated. Experience shows that once an immediate threat has lifted, people's enthusiasm to travel rapidly returns."

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Four Seasons Hotels and Resorts to preview regional expansion at Arabian Travel Market

Canada’s Four Seasons Hotels and Resorts will preview its plans for a further four hotels in the Middle East during the forthcoming Arabian Travel Market. The hotel group has, in less than three years, opened four properties in the region. The company’s first opening in the region was in May 2000 with the debut of Four Seasons Hotel Cairo at The First Residence. 

Le M?ridien throws weight behind destination marketing at Arabian Travel Market

Region’s major hospitality group to work hand-in-hand with tourism offices   -  Acting swiftly to counteract the downturn in global travel, Le Meridien in the Middle East and West Asia is focusing promotional budgets on a destination marketing strategy in full support of the on-going efforts of commerce and tourism boards in its host destinations, says Russel Sharpe, the luxury hotel group’s regional vice president sales.   

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Taiwan: Hotel industry faces record low occupancy rates, seeks bailout

In face of the SARS epidemic, roughly 84 percent of the hotels in Taiwan reported lower than 30 percent occupancy rates, while 96 percent of hotels have seen loses, accordingly to a survey. The survey, conducted by Pan Asia Human Resources Corp. and Legislator Chiu Yung-jen, polled 2,452 hotels in Taiwan on their status quo against the severe acute respiratory syndrome (SARS). Roughly 79 percent of hotels in the survey viewed the impact of the SARS epidemic as very severe. The survey also showed that 79.01 percent of hotels regarded their business as deteriorating after the quarantine measure imposed in the Ho Ping Hospital.  

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May 7, 2003

Accor sales fall on currencies, casino divestment

French hotel group Accor reported a 6.5 percent decline in first-quarter sales on Tuesday, hurt by currency effects in the Americas and the sale of a large chunk of its casino business at home.The sales figure was in line with analysts' forecasts. In a conference call with reporters, the company declined to give forecasts for 2003, nor indications of its performance four months into the first half. Europe's biggest hotelier, which includes the upscale Sofitel hotel and U.S. budget chains Red Roof and Motel 6, said first-quarter sales fell to 1.558 billion euros ($1.77 billion) from 1.667 billion euros last year. Sales rose one percent like-for-like -- currencies wiped 8.3 points off growth.

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Starwood Hotels debt rating to junk by S&P

Standard & Poor's on Tuesday cut its debt rating on Sheraton-owner Starwood Hotels & Resorts Worldwide Inc. to junk, citing a weak economy and challenging environment for the lodging industry. The reduction from an investment-grade rating of White Plains, New York-based Starwood, one of the top three U.S. hoteliers and also owner of Westin and W brands, comes after it and other lodging companies forecast a 2003 contraction in room revenue, the key barometer of industry health. Fears of the SARS illness has added to concerns raised by the U.S. war in Iraq and general economic malaise. Starwood plans to cut its $5.5 billion debt by $1.1 billion through asset sales this year.

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Worldwide Hotel Electronic Bookings Up 4.6% in Q1 - according to TravelCLICK

TravelCLICK's eMonitor results for the first quarter of 2003 show that worldwide hotel room nights booked electronically through the Global Distribution Systems (GDSs) and key Internet sites increased 4.6% versus the same period last year.  Revenue for the first quarter of 2003 was up 3.6%, and average rate declined 0.9%. "The growth in room nights was largely driven by room nights booked by consumers over Internet sites," said Bruce W. Mainzer, senior vice president of marketing for TravelCLICK.   

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InterContinental Hotels Group Awarded Two New Management Contracts in the Philippines

First Crowne Plaza Hotel to be Opened in Prime Location in Manila -  InterContinental Hotels Group (IHG) today announced that it has been awarded two new management contracts by Robinsons Land Corporation (RLC). Under the agreement, one of RLC's hotels, Manila Galleria Suites, will be rebranded into a Holiday Inn Hotel, and a Crowne Plaza hotel, which is under construction, will be launched in Ortigas Centre, the newest business and commercial hub in Manila.  

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Hilton Intl Bangkok: Management change ‘on the cards’

Conrad's opening behind owner's likely move: source  -  After nearly 20 years, the Hilton International Bangkok at Nai Lert Park may change management firms, according to a source at the hotel. The source said hotel owner Thanpooying Lersak Sombatsiri might terminate the long-term relationship with the Hilton international hotel chain when the existing contract expires at the end of this year. The source said the opening of the new Hilton-affiliated Conrad Hotel on Wireless Road had prompted the owner to consider the change. The Conrad Hotel is now the major competitor for the Hilton International Bangkok.

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Intelligent Spas Announces Spa Industry Survey Results for Thailand

Thailand spas attracted 2.6 million international tourists last financial year and generated approximately 85 million dollars in revenue. The in-depth survey conducted by Intelligent Spas Pte Ltd and endorsed by the Thai Spa Association, also reported the 230 spa facilities employed over 4,000 people.  

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Hong Kong’s ITE postponed to September

The International Travel Expo (ITE), originally schedule for June 12 – 15 in Hong Kong, has now been postponed to late September. Organisers of the annual four-day travel fair, Adsale Exhibitions Services Ltd., surveyed ITE participants on whether to postpone the event to September or October. A spokesperson for Adsale told TravelWeekly today that 70 percent of those surveyed preferred September and a firm date was to be be set by the end of today.

Grosvenor House, Dubai, the Marina’s first hotel, will re-design the meaning of ‘hospitality’

As development projects in Dubai’s luxury hospitality sector show little sign of slowing down, one hotelier says that ‘bricks and mortar’ are not enough to accommodate the ever-increasing demands of the guest. Entrusted to turn the ‘excellence’ ambition of one of the emirate’s leading tourism and hospitality chiefs, His Highness, Sheikh Ahmed bin Saeed Al Maktoum, into reality, Pam Wilby explains how she plans to do this as news of the first hotel project on Dubai Marina breaks.  

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Chilean tourism industry recovering.

After two successive negative summer seasons the number of tourists visiting Chile during the first quarter of 2003 increased 2,7% over the same period in 2002 according to the latest release from the Chilean National Tourism Service. The increase represented a 5% expansion in income equivalent to 20 million US dollars. “We can confirm that the foreign tourists falling tendency has reverted”, said Mr. Oscar Santelices head of the Tourist Office adding that this has been achieved by “diversification, attracting tourists from other countries diminishing our dependency from Argentina”.

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Corinthia Grand Hotel Royal Budapest declared “officially open”

The five-star deluxe Corinthia Grand Hotel Royal, a landmark redevelopment of a historic 19TH century hotel in the heart of Budapest, Hungary, was today declared 'officially open', in the presence of the President of Hungary Ferenc Madl and the President of Malta Guido De Marco. The hotel joins a list of prestigious properties operated by Corinthia Hotels International in eleven destinations. Corinthia Group Chairman Alfred Pisani welcomed guests to an evening of classical music by the Hungarian Liszt Ferenc Chamber Orchestra. This was followed by a Gala Dinner in the hotel's meticulously restored Grand Ballroom.  

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Despite SARS, Hotel Companies Still Intend to Expand in China

Three hotel giants, including InterContinental Hotels Group, said their plans to expand in China would continue despite the damage done by the disease known as severe acute respiratory syndrome, or SARS. China has confirmed 190 deaths resulting from SARS and 4,000 cases of infection, which have scared off tourists and left 2 out of 3 hotel rooms empty.  

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ACCOR launches consumer-friendly and price-transparent website

Travellers have access to best on-line rates over 60 day period Australia's largest hotel group, Accor, has launched the hotel industry's most user-friendly web-site -www.accorhotels.com.au - which gives travellers access to the best on-line Hot Deal rates available over a 60 day period at some 100 hotels in Australia and New Zealand. Each hotel lists the on-line rate for each and every day (unless sold out) over the two month period. The rates vary according to demand on that specific day or in that specific hotel, but the transparency will allow travellers to organise their hotel stays when best rates are available.  

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May 8, 2003

Middle East & Africa:  2002 – A challenging but encouraging year

Released today at the Arabian Travel Market (ATM), Deloitte & Touche’s annual review of hotel performance throughout the Middle East & Africa indicates 2002 was a challenging year for the hotel industry across the region still reeling from the recession of 2001 and the changing travel patterns following the events of September 11.  For the full year of 2002, Middle East hotels across the region reported an average increase in revPAR of 5.2% over 2001 levels.  A 5.5% increase in occupancy was offset by a 0.3% fall in average room rates, as hoteliers sought to discount rates to stimulate demand in these tough trading conditions. 

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Charles Gurassa tipped for top Whitbread job

e-Tid.com  -  London Times tips Gurassa for top Whitbread job Charles Gurassa, who is to leave TUI Northern Europe on 1 June, is being tipped as a possible chief executive of leisure group Whitbread. According to the Times, analysts believe 47-year-old Gurassa would be a strong candidate to succeed current Whitbread chief David Thomas, who is due to retire from the role in 14 months’ time.

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Hotel chains grew Internet reservations by 75%

According to a new report by TravelClick, Internet reservations received at the central reservation offices for the major chains grew 75% in 2002 over 2001. And big surprise - the increase was driven primarily by the brands' own Web sites. Despite the impressive growth of the Internet, the report shows that over twice as many reservations come through GDS channels than via Internet sites.

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Interstate Hotels reports first-quarter profit

Interstate Hotels & Resorts on Tuesday reported a quarterly profit, after a loss a year earlier, helped by a gain from early repayment of a loan, but lowered some forecasts for 2003 due to the weak travel sector. The company said it earned $4.4 million in the first quarter, or 21 cents per share, compared with a loss of $2.2 million, or 11 cents per share, a year earlier, on a proforma basis, before the company was formed by a merger of MeriStar Hotels and Resorts and Interstate Hotels Corp. The company said its 2003 net operating income would be $9.7 million to $13.7 million with earnings per share of 14 cents to 26 cents, excluding items. For the second quarter it said its results would range from a loss of 2 cents a share to a profit of 1 cent per share. The company said it lowered its 2003 guidance for earnings before interest, taxes, depreciation and amortization by 8 percent to $31 million to $35 million.

Marriott Wins Round in Suit Filed by Hotels in New Orleans

A judge in New Orleans has declined to issue a temporary restraining order against Marriott International to prevent it from managing a luxury property in the city. The ruling is a setback for the owners of three nearby luxury hotels that have accused Marriott of competing unfairly. The hotels are managed by Ritz-Carlton, which is owned by Marriott. Whitehouse Hotel Limited Partnership and a related entity, W. H. Holdings, both of Dallas, filed a lawsuit last month against Marriott and its unit, the Ritz-Carlton Hotel Company L.L.C. They contended that Marriott's management of the former New Orleans Grand Hotel under its luxury J W Marriott flag would financially imperil their own properties, the Maison Orleans, the Ritz-Carlton New Orleans and the Iberville Suites

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Wyndham Reports $107 million 1st Qtr Net Loss,
EBITDA Falls 23% from a Year Earlier 

Wyndham International, Inc. (AMEX:WBR) today reported results for the first quarter ended March 31, 2003. Despite the nation's current economic downturn and start of Operation Iraqi Freedom, Wyndham International, Inc. exceeded its guidance for first quarter 2003, posting actual EBITDA of $87.9 million. The Company had a net loss of $107.4 million, including a non-cash impairment. RevPAR for the Company's comparable owned and leased properties was in-line with expectations at a 2.0 percent decline versus prior year.

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ATM 2003: 5.16pc growth in Dubai hotel guests

The number of hotel establishment guests in Dubai registered an increase of 5.16 per cent during the first quarter of this year, compared with the corresponding quarter last year, according to the Depart-ment of Tourism and Com-merce Marketing (DTCM). The number of hotel establishment guests during the first quarter of this year rose to 1,263,128 compared with last year's 1,201,200. Statistics for hotel establishments for 2002 established that Dubai has the highest tourism growth in the world.

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IHG in talks to sell ?130m May Fair Hotel

The newly demerged hotel arm of Six Continents, InterContinental Hotels Group (IHG), is in talks to sell the luxury May Fair InterContinental in London’s West End to a consortium of investors including Cola Holdings. The hotel, worth an estimated ?130 million, was put up for sale last year by IHG after it received a number of unsolicited approaches. It decided to put a planned ?60 million refurbishment of the 289-room hotel on hold while it investigated a possible sale.  

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Le M?ridien pushes ahead with regional expansion

New hotels in Kuwait, Dubai, Abu Dhabi and Tashkent - With several major hotel projects underway, and more in the pipeline, Le M?ridien Hotels & Resorts is committed to its expansion strategy in the Middle East and West Asia region where it will double its presence within five years.  Regional managing director Sami Zoghbi confirmed the green light for projects in the UAE, Kuwait and the CIS, emphasising the potential for growth throughout the region.   

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London E-news May 2 2003 – HVS International

Summary:  No Weed, But Thistle Ultimately Gives In - Whitbread Prizes Go To Travel Inn - Fermenting Change - Hotel Dreams Of Jeanette - Ramada Gets To Work In Sweden - Three Steps To Heaven - By George! He’s Got It - NH Hoteles Fit To March - This Globe’s Worth A Spin - Starwood Felled - John Lennon And Wings - Broadening Horizons

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10 more hotels in Vietnam join BHA

10 more hotels and resorts in Vietnam have been accepted to be new members of the Best Hotels Alliance (BHA) in Asia, bringing the total members of BHA to 33. 10 new members are Century Riverside Hotel (Hue); Coco Beach Resort (Phan Thiet); Horison Hotel (Hanoi); Hon Tre island Resort (Nha Trang); La Domaine Hotel (Quang Nam); Legend Hotel (HCM city); Life Resort (Qui Nhon); Sai gon Omni Hotel (HCM city); Tuan Chau Resort (Ha Long) and Yasaka Hotel (Nha Trang) BHA is established in Jan. 1998 with an aim to promote new images on hotels and resorts throughout the region in general and Vietnam in particular.

Hoteliers lack confidence in VisitScotland

e-Tid.com  -  Almost two-thirds of Scottish hoteliers believe prospects for the country’s tourism industry have declined since the Scottish Tourist Board transformed itself into VisitScotland two years ago. The Sunday Herald reports new research by the Forum of Private Business in Scotland found that only 15% of 100 hoteliers surveyed thought the industry’s prospects had improved since the inception of VisitScotland, compared with 21% who felt there had been little change and 61% who believed they had worsened

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May 9, 2003

CNL Hospitality to buy RFS Hotel for $383 mln

Hotel owner CNL Hospitality Corp. said on Thursday it reached a deal to buy RFS Hotel Investors Inc. or about $383 million in cash in a move that would nearly double the number of hotels its owns. CNL Hospitality, a privately held real estate investment trust based in Orlando, Florida, said it would pay $12.35 a share for RFS, an 11 percent premium over the closing price of $11.10 Thursday on the New York Stock Exchange. The company, which is an affiliate of CNL Financial Group, will also assume about $305 million of debt held by Memphis-based RFS. 

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Four Seasons Q1 loss $9.3M; revenue cut 5.5% by SARS, weakening US

 Four Seasons Hotels Inc. is trying to cut costs while maintaining its de luxe status after suffering a $9.3-million first-quarter loss, afflicted by war in Iraq, the feeble U.S. dollar, SARS and general weakness in high-expense travel. January-March revenue fell 5.5 per cent from a year ago, to $61 million from $64.6 million, the company reported Thursday. The $9.3-million loss, 27 cents per share, was down from a profit of $7.7 million, 21 cents per share, in the first full quarter after the Sept. 11 terrorist calamity.

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TIA Traveler Sentiment Index Down Only Slightly In Second Quarter 2003 

The war in Iraq had little impact on traveler sentiment, with the Travel Industry Association of America's (TIA) Traveler Sentiment Index down only slightly in second quarter 2003. The overall index now stands at 95.7, down from 97.1 in first quarter 2003. Consumers feel that travel is very affordable right now; however, they continue to be concerned about having enough money to take a trip, most likely an indication of their uneasiness over the state of the economy. Consumers also are very concerned about having the time available to travel, which may explain the slight drop in interest in taking a pleasure trip. The uncertainty created by these factors is probably contributing to the current late booking patterns seen throughout the travel industry. The survey took place April 3 - 13.

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News@PATA

DE JONG URGES “QUICK AND EFFECTIVE” COMMUNICATION AGAINST SARS IMPACT  -   PATA President and CEO, Mr. Peter de Jong, sent an urgent message to PATA members and the media on April 30, after attending a press briefing in Bangkok by World Health Organization Executive Director, Dr. David Heymann. "It is essential that this reassurance is communicated onwards throughout our industry and to the public," de Jong wrote. Dr. Heymann had reassured the April 28 briefing that travel was as safe as ever now that appropriate screening and prevention measures were in place. 

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Winston Hotels Reports First Quarter 2003 Results

Winston Hotels, Inc. , a real estate investment trust (REIT) and owner of premium limited-service, upscale extended-stay and full-service hotels, today announced results for the first quarter ended March 31, 2003. Net loss to common shareholders was $(0.2) million for the three months ended March 31, 2003, or $(0.01) per share, compared to $(2.8) million for the three months ended March 31, 2002, or $(0.16) per share. Funds from operations (FFO) decreased 16.5 percent to $4.2 million for the 2003 first quarter, compared to $5.0 million for the like period a year earlier. 

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WHO sets criteria to lift travel advisory; Nine new Sars cases yesterday, but it wants to see fewer than five a day

The World Health Organisation has set out three criteria that Hong Kong must meet to have the travel advisory imposed against it as a result of the Sars outbreak lifted, stressing that the number of new cases must be fewer than five for at least three consecutive days. The requirement concerning new cases also involved the number of patients receiving treatment in Hong Kong hospitals being reduced to 60. The WHO stipulated two other prerequisites. Firstly, Hong Kong must have stopped spreading the virus to other nations - something that has not happened for two or three weeks already. Secondly, the mode of transmission must be understood in each case.

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Hospitality Management Summer Programme (HMSP) 2003 scheduled for 23rd consecutive year

Ecole h?teli?re de Lausanne is conducting the annual Hospitality Management Summer Programme (HMSP) 2003 for the 23rd consecutive year Originating at the world's oldest and foremost hospitality institution, one hundred and ten years of experience, HMSP was created in 1981, stemming from the need to improve organizational skills and management knowledge in the hospitality industry.  The programmes are organized and conducted by Lausanne Hospitality Consulting (LHC), a business unit of EHL.  LHC continuously refines and improves the offer to reflect current industry trends.  

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Hong Kong Wharf hotel unit issues profit warning

Hong Kong Hotel and restaurant operator Harbour Centre Development has issued a profit warning for its half-year result, which one analyst said could drag down parent Wharf Holdings' earnings by as much as 6 per cent this year. Harbour Centre Development, 67 per cent-owned by Wharf, said average occupancy rate of the Marco Polo Hong Kong Hotel had fallen to around 10 per cent in April, compared to 83 per cent for the same period last year. The collapse in occupancy, which accounted for 80 per cent of the company's turnover and 52 per cent of earnings last year, was expected to negatively affect first-half earnings to June 30.

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Millennium Hilton at Ground Zero Reopens

The newly renovated Millenium Hilton in lower Manhattan welcomed guests with huge plasma-screen TVs, comfy king-sized beds -- and optimistic words from Gov. Pataki and Mayor Bloomberg.  But nothing compared to the view.  Nearly all of the luxury hotel's 565 rooms stare out at Ground Zero -- something that's impossible to miss, even though Hilton did not tout the unique sightlines at yesterday's grand reopening.  The Millenium sits directly across Church St. from the pit, and yesterday it became the last hotel closed by the Sept. 11 attacks to reopen.   

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Mandarin Oriental says Hong Kong occupancy at unprecedented low levels

AFX  -  International hotels group Mandarin Oriental International Ltd said occupancy levels fell to unprecedented low levels in Hong Kong in March and April due to the effects on international travel of both the outbreak of SARS and the Iraq war, while occupancy has also fallen in Singapore and Bangkok.

Hotels in the United States and Europe have also been affected, but to a lesser extent, the group told shareholders at the Annual General Meeting in Bermuda, adding that it is still too early to assess the full impact of these effects on the 2003 full year results.

"In the meantime, the Group is making every effort to reduce costs and defer discretionary capital expenditure while maintaining standards," the company said.

It said its development strategy remains on track and its financial position is sound.

Trading in January and February was in line with the same period in the previous year, the company said