Strong Flow-Through at Comparable Owned Hotels; All Brands Increase Market Share

/Business Wire/ - Hilton Hotels Corporation (NYSE:HLT) today reported financial results for the fourth quarter and fiscal year ended December 31, 2002.

Compared to the year-ago quarter, the following factors contributed to the company achieving solid quarterly earnings-per-share: significant revenue-per-available-room (RevPAR) growth at the company's comparable owned hotels, driven by strong occupancy levels at most of the company's owned city-center properties and easy comparisons with the 2001 period; market share increases for all brands in the Hilton family, and solid margins.

Factors adversely impacting the quarter included continued softness in independent business travel which suppressed average daily rate (ADR) growth, and increased insurance costs.

Hilton reported fourth quarter net income of $40 million, versus $4 million in the 2001 quarter. Diluted net income per share was $.11, compared with $.01 in the fourth quarter 2001. Pro forma diluted EPS in the fourth quarter 2001 (including $.03 per share from the new accounting rules pertaining to non-amortization of goodwill and certain intangible assets) was $.04.

For the full year 2002, Hilton reported net income of $198 million, versus $166 million in 2001. Diluted net income per share was $.53 for the year compared to $.45 in 2001. Pro forma diluted EPS for full year 2001 (including $.12 per share from the new accounting rules mentioned above) was $.57.

The company reported 2002 fourth quarter total revenue of $957 million, up 8 percent from $887 million in the 2001 period. Total company earnings before interest, taxes, depreciation, amortization and non-cash items (EBITDA(a)) was $232 million, compared with $194 million in the 2001 quarter, a 20 percent increase. Total operating income was $136 million compared to $79 million in the 2001 fourth quarter. Total company EBITDA margin for the quarter was 32.1 percent (EBITDA as a percentage of revenue before "other revenue from managed and franchised properties,") an increase of 280 basis points over the 2001 quarter.

For full year 2002, compared to fiscal 2001, total company revenue declined 4 percent to $3.847 billion; total company EBITDA of $990 million represented an 8 percent decrease, and total company EBITDA margin was 34.2 percent, a 90 basis point decline from 2001. Total company operating income was $603 million in 2002, compared with $632 million in 2001.

Owned Hotel Results

Across all brands, EBITDA and operating income from the company's owned hotels (majority owned and controlled hotels) totaled $163 million and $102 million, respectively, in the fourth quarter. Comparable EBITDA increased 29 percent from the 2001 period. RevPAR from comparable owned properties increased 13.2 percent in the quarter; occupancy at these hotels showed an increase of 7 points to

• 68.3 percent, and average daily rate increased 1.6 percent to $151.76. EBITDA margins at these hotels, while continuing to be impacted by increased insurance costs, remained solid for the quarter at 29.7 percent, a 390 basis point increase over the corresponding 2001 quarter.

Particularly strong results were posted by Hilton's owned properties in such key markets as New York, Chicago, Boston and Hawaii, with hotels in these markets showing both high occupancy levels (in the case of New York, more than 90 percent) and significant RevPAR growth. Strong occupancy gains were reported at the company's owned hotels in Washington, D.C., owing partially to favorable comparisons with the 2001 quarter. The New Orleans market was impacted by soft group business in the quarter. The San Francisco/San Jose and Phoenix markets continued to exhibit softness in the face of sluggish demand and new full-service hotel supply.

Fourth quarter comparisons to the first three quarters of 2002 confirmed the sequential quarterly improvement the company had anticipated for the year. Compared with the respective 2001 quarters, RevPAR at comparable owned hotels declined 15.3 percent and 6.1 percent, respectively, in the first and second quarters, and increased

• 1.2 percent and 13.2 percent, respectively, in the third and fourth quarters.

For full year 2002, EBITDA and operating income from the company's owned hotels totaled $638 million and $374 million, respectively. Comparable EBITDA declined 1 percent. RevPAR for the full year at comparable owned hotels declined 2.6 percent; occupancy improved 1.6 points to 71.1 percent, while average daily rate declined 4.8 percent to $148.41. Full year EBITDA margins at these hotels were roughly flat with 2001 at 30.2 percent.

Owned-or-Operated Hotel Results

Comparable RevPAR at the company's U.S. owned-or-operated hotels increased 9.4 percent in the fourth quarter, compared to the 2001 period, on an occupancy increase of 5.2 points to 65.4 percent, and an ADR increase of 0.6 percent to $126.45. Within the Hilton full service brand, comparable owned-or-operated RevPAR increased 15.1 percent in the quarter, with occupancy up 8.2 points to 68.3 percent, and an ADR increase of 1.3 percent to $152.20.

Compared with fiscal 2001, full year 2002 comparable RevPAR at the company's U.S. owned-or-operated hotels declined 3.7 percent. Occupancy improved 0.7 points to 69.0 percent, and ADR declined 4.7 percent to $126.70.

System-wide RevPAR; Management/Franchise Fees

Fourth quarter system-wide RevPAR at each of the Hilton brands (including franchise properties) increased as follows: Hilton, 10.7 percent; Doubletree, 4.0 percent; Embassy Suites, 3.8 percent; Hilton Garden Inn, 3.8 percent; Homewood Suites by Hilton, 3.1 percent; and Hampton Inn, 2.6 percent.

Management and franchise fees for the quarter totaled $78 million, an 8 percent increase from the 2001 period.

For the full year, system-wide RevPAR at Hampton Inn improved 0.4 percent, with system-wide RevPAR at other company brands declining as follows: Hilton Garden Inn, 1.1 percent; Homewood Suites by Hilton,

• 2.2 percent; Hilton, 2.6 percent; Embassy Suites, 3.0 percent; and Doubletree, 5.5 percent.

Full year 2002 management and franchise fees declined 4 percent from 2001 to $329 million.

Brand Development/Market Share

Year-to-date November 2002 (the latest period for which data is available), each of the company's hotel brands continued to increase market share over their respective segment competitors. With 100 representing a brand's fair share of the market, the Hilton brands (according to data from Smith Travel Research) performed as follows for the first 11 months of 2002: Embassy Suites, 123.7 (+2.9 pts.); Hampton Inn, 118.4 (+3.9 pts.); Homewood Suites by Hilton, 118.3 (+4.3 pts.); Hilton, 109.5 (+2.5 pts.); Hilton Garden Inn, 107.8 (+2.8 pts.); Doubletree, 99.0 (+0.5 pts.)

Cross-selling among the Hilton brands, along with the benefits of the Hilton HHonors loyalty program, continues to contribute to the strong performance of the company's brands. For full year 2002, cross-selling through Hilton Reservations Worldwide generated $306 million in system-wide booked revenue, an increase of nearly 18 percent over 2001.

In the fourth quarter, the company added 35 properties and 4,256 rooms to its system as follows: Hampton Inn, 18 hotels and 1,648 rooms; Hilton Garden Inn, 7 hotels and 789 rooms; Homewood Suites by Hilton, 4 hotels and 568 rooms; Hilton, 3 hotels and 874 rooms; Embassy Suites, 1 hotel and 174 rooms; Doubletree, 1 hotel and 125 rooms; and Hilton Grand Vacations, 1 property and 78 rooms. Nine hotels and 1,844 rooms were removed from the system during the quarter.

During 2002, a total of 143 hotels and 18,034 rooms were added to the Hilton system, in line with the company's expectations. At year-end 2002, the Hilton system consisted of 2,084 properties and 337,116 rooms.

Hilton Grand Vacations

The company's vacation ownership business, Hilton Grand Vacations Company (HGVC), reported fourth quarter EBITDA of $13 million, compared to $17 million in the 2001 quarter. Operating income in the fourth quarter totaled $11 million in 2002 compared with $16 million in the 2001 period.

HGVC's newest property, Hilton "City Club," located on two floors of the Hilton New York and Towers in midtown Manhattan, opened at year-end 2002. Development continues on schedule at two additional properties in Orlando, Florida, and Las Vegas, Nevada.

Impacting both EBITDA and operating income at HGVC were the sale of receivables in June and November of 2002, revisions to final construction costs in Hawaii, higher sales and marketing costs and start-up costs in New York. These factors combined to adversely impact EBITDA and operating income at HGVC by $9 million.

Thirty-seven percent of unit sales in the fourth quarter were at the company's new properties in Orlando, Las Vegas and New York, which, due to requirements under generally accepted accounting principles, limited the amount of reported revenue, EBITDA and operating income growth.

Full year EBITDA and operating income at HGVC was $80 million and $73 million, respectively, compared to $88 million and $86 million, respectively, in 2001. HGVC's 2001 results benefited from deferred timeshare sales in Hawaii in the amount of $14 million.

Corporate Finance

At year-end 2002, Hilton had total debt of approximately $4.2 billion (net of $325 million of debt allocated to Park Place Entertainment), with approximately 27 percent of the company's debt being floating rate debt. During 2002, the company paid down approximately $455 million of debt. (Since year-end 1999, the company has reduced its debt balance by $1.2 billion.) Cash and equivalents totaled approximately $54 million at year-end 2002. The company's average basic and diluted shares outstanding for the fourth quarter were 376 million and 403 million, respectively, and 374 million and 401 million, respectively, for full year 2002.

Hilton's debt currently has an average life of 7.1 years, at an average cost of approximately 6.4 percent. At year-end 2002, the company had approximately $960 million of available capacity under its various lines of credit.

The company's effective tax rate for the 2002 fourth quarter was approximately 36 percent.

During the quarter, Hilton completed three separate transactions consistent with the company's financial strategies of reducing debt and extending maturities:

• The company sold $375 million of 10-year Senior Unsecured Notes carrying a coupon of 7.625 percent, with a maturity date of December 1, 2012.

• Hilton sold $67 million in timeshare notes receivable to a wholly owned subsidiary of GE Capital.

• The company renewed its $150 million 364-day revolving credit facility.

CNL Transaction

During the fourth quarter, Hilton completed the first of a planned three-part transaction with CNL Hospitality Corp. in which the two companies formed a partnership that may ultimately acquire seven hotel properties. Hilton will operate the hotels under long-term management agreements and retain a minority ownership in the partnership.

In the first phase of the transaction, completed at year-end, the partnership acquired the 500-room Doubletree Lincoln Centre in Dallas, Texas, and the 428-room Sheraton El Conquistador Resort and Country Club in Tucson, Arizona. The Tucson property has been converted to the Hilton brand, and the Dallas hotel is in the process of converting to the Hilton flag.

It is expected that the remaining phases of the CNL transaction will be completed in the first quarter 2003.

First Quarter, Full Year 2003 Outlook

Hilton anticipates continued challenges for the lodging industry in the first quarter and full year 2003. Soft economic conditions are expected to impact the recovery of independent business travel, putting continued pressure on room rates. Higher insurance costs and property taxes, along with this rate pressure, are expected to adversely affect margins.

With visibility remaining low for the lodging industry, and the company's anticipation of challenges in 2003, Hilton has revised downward its outlook for 2003. The company provided the following estimates for the first quarter 2003, and updated its preliminary full year 2003 estimates:

First Quarter 2003 Estimates

Total revenue                        $930 million range
Total EBITDA/operating income        $200-210 million/$100-110 million
Owned hotel EBITDA/operating income  $120-130 million/$55-65 million
Owned hotel EBITDA margins           Mid 20% range
Comparable owned hotel RevPAR        Approximately flat
Diluted earnings per share           $.05 range

Full Year 2003 Estimates

Total revenue                        $4 billion range
Total EBITDA/operating income        $980 million-$1.0 billion/
                                      $590-610 million
Owned hotel EBITDA/operating income  $615-635 million/$365-385 million
Owned hotel EBITDA margins           High 20% range
Comparable owned hotel RevPAR        Approximately flat
Diluted earnings per share           Mid to high $.40 range

Total capital spending in 2003 is expected to be approximately $355 million, with approximately $165 million being spent on routine improvements and technology, $105 million on timeshare projects, $50 million on special projects at owned hotels and $35 million at the Hilton Hawaiian Village related to the mold situation. The company anticipates being able to re-open the hotel's Kalia Tower guestrooms in the second quarter 2003.

Hilton anticipates adding 100 to 115 hotels and 12,000 to 15,000 rooms to its system in 2003, approximately two-thirds of which are expected to be Hampton Inns and Hilton Garden Inns. Conversions to one of Hilton's brands are expected to account for approximately 10 percent of the unit growth. The company's current development pipeline has approximately 370 hotels and 50,000 rooms approved and in design, or under construction.

Stephen F. Bollenbach, president and chief executive officer of Hilton Hotels Corporation, said: "We are pleased with the results of our fourth quarter. The strength shown in important markets such as New York and Chicago and improvement in cities like Washington, D.C.; our ability to effectively manage costs without impacting the customer's experience; opening new units across our system, and increasing market share at all of our brands contributed to gratifying results and made for a successful quarter.

"By focusing on the fundamentals of our business, having an uncomplicated business model and sound strategy -- and being able to execute against that strategy -- we had a very solid year, outperforming most of our competitors in a difficult operating environment."

Mr. Bollenbach continued: "We expect, however, that many of the external factors that adversely impacted 2002 will do so again in 2003. These include a fragile U.S. economy and the uncertain world political situation, which we believe will combine to impact business travel in particular and put pressure on room rates. Add to this another factor beyond our control -- significantly increased health care and insurance costs -- and it's clear that a more cautious outlook for 2003 is warranted.

"Our focus, then, for 2003 will be on those things that we can control, and where we have excelled in the past: building occupancy, managing our costs, achieving RevPAR premiums and unit growth, making prudent investments, and delivering outstanding customer service through our dedicated team of employees and the introduction of new technology."

Mr. Bollenbach concluded: "We are confident that we have the framework in place to meet the challenges that we will encounter in 2003, enabling us to further strengthen our industry leadership position."

(a) EBITDA (earnings before interest, taxes, depreciation, amortization, pre-opening expense and non-cash items) should not be considered as an alternative to any measure of operating results as promulgated under United States generally accepted accounting principles (such as operating income or net income), nor should it be considered as an indicator of our overall financial performance. EBITDA does not fully consider the impact of investing or financing transactions as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of results. Additionally, our method of calculating EBITDA may be different from the method used by other companies and therefore comparability may be limited.

Hilton uses EBITDA as a supplemental measure of performance because we believe it gives the reader a more complete understanding of our operating results before the impact of investing and financing transactions. Non-cash items, such as asset write-downs and impairment losses, are also excluded from EBITDA, as these items do not impact operating results on a recurring basis. EBITDA and EBITDA margins are among the more significant factors in management's evaluation of company-wide and individual property performance. EBITDA can be computed by adding depreciation, amortization, pre-opening expense, interest and dividend income from investments related to operating activities and non-cash items to operating income. A reconciliation of total operating income to total EBITDA is presented on the Financial Highlights table of this press release.

                      HILTON HOTELS CORPORATION
                   Financial Highlights (Unaudited)
               (in millions, except per share amounts)

                    Three Months Ended     Twelve Months Ended
                       December 31             December 31
                       2001  2002   % Change   2001    2002   % Change
Revenue
  Owned hotels         $472  $545       15 % $2,122  $2,100       (1)%
  Leased hotels          35    25      (29)     168     111      (34)
  Management and
   franchise fees        72    78        8      342     329       (4)
  Other fees and income  83    75      (10)     418     355      (15)
                        662   723        9    3,050   2,895       (5)
  Other revenue from
   managed and
   franchised
   properties (1)       225   234        4      943     952        1
                        887   957        8    3,993   3,847       (4)

Expenses
  Owned hotels          350   382        9    1,468   1,462        -
  Leased hotels          35    24      (31)     152     101      (34)
  Depreciation and
   amortization          97    90       (7)     391     348      (11)
  Impairment loss and
   related costs          -     1        -        -      21        -
  Other operating
   expenses              78    71       (9)     336     294      (13)
  Corporate expense,
   net                   23    19      (17)      71      66       (7)
                        583   587        1    2,418   2,292       (5)
  Other expenses from
   managed and
   franchised
   properties (1)       225   234        4      943     952        1
                        808   821        2    3,361   3,244       (3)

Operating income         79   136       72      632     603       (5)

Interest and dividend
 income                  15     6      (60)      64      43      (33)
Interest expense        (87)  (76)     (13)    (385)   (328)     (15)
Net interest from
 unconsolidated
 affiliates              (5)   (4)     (20)     (17)    (19)      12
Net (loss) gain on
 asset dispositions     (43)    2        -      (44)    (14)     (68)
Income before taxes and
 minority interest      (41)   64        -      250     285       14
Tax benefit (provision)  46   (23)       -      (77)    (81)       5
Minority interest, net   (1)   (1)       -       (7)     (6)     (14)
Net income               $4   $40        - %   $166    $198       19 %

Net income per share
Basic                  $.01  $.11        - %   $.45    $.53       18 %
Diluted                $.01  $.11        - %   $.45    $.53       18 %

Average shares - basic  369   376        2 %    369     374        1 %
Average shares -
 diluted                394   403        2 %    394     401        2 %

Reconciliation of
 Operating Income to
 EBITDA (2)
Operating income        $79  $136       72 %   $632    $603       (5)%
  Pre-opening expense     -     -        -        3       1      (67)
  Non-cash items, net     7    (1)       -        7       2      (71)
  Operating interest
   and dividend income    4     -        -       15       9      (40)
  Depreciation and
   amortization (3)     104    97       (7)     415     375      (10)
EBITDA                 $194  $232       20 % $1,072    $990       (8)%

(1) Revenue and expenses from managed and franchised properties are
    included in our reported results beginning January 1, 2002 in
    response to a FASB staff announcement.  These costs relate
    primarily to payroll costs at managed properties where we are the
    employer.  The 2001 revenue and expenses have been reclassified to
    conform with the 2002 presentation.
(2) EBITDA is earnings before interest, taxes, depreciation,
    amortization, pre-opening expense and non-cash items.  EBITDA can
    be computed by adding depreciation, amortization, pre-opening
    expense, interest and dividend income from investments related to
    operating activities and non-cash items to operating income.
(3) Includes proportionate share of unconsolidated affiliates.


                      HILTON HOTELS CORPORATION
                U.S. Owned-or-Operated Statistics (1)

                                  Three Months Ended
                                      December 31
                                   2001         2002      %/pt Change

Hilton
   Occupancy                       60.1 %       68.3 %        8.2 pts
   Average Rate                 $150.32      $152.20          1.3 %
   RevPAR                        $90.29      $103.90         15.1 %

Doubletree
   Occupancy                       60.1 %       63.0 %        2.9 pts
   Average Rate                 $103.62      $102.89         (0.7)%
   RevPAR                        $62.23       $64.84          4.2 %

Embassy Suites
   Occupancy                       60.7 %       64.4 %        3.7 pts
   Average Rate                 $122.20      $119.97         (1.8)%
   RevPAR                        $74.20       $77.32          4.2 %

Other
   Occupancy                       59.4 %       62.1 %        2.7 pts
   Average Rate                  $90.14       $89.58         (0.6)%
   RevPAR                        $53.57       $55.67          3.9 %

Total U.S. Owned-or-Operated
   Occupancy                       60.2 %       65.4 %        5.2 pts
   Average Rate                 $125.67      $126.45          0.6 %
   RevPAR                        $75.59       $82.69          9.4 %


                                 Twelve Months Ended
                                      December 31
                                  2001          2002      %/pt Change

Hilton
 Occupancy                        69.5 %        70.9 %        1.4 pts
 Average Rate                  $156.46       $150.04         (4.1)%
 RevPAR                        $108.76       $106.32         (2.2)%

Doubletree
 Occupancy                        67.4 %        67.1 %       (0.3)pts
 Average Rate                  $109.72       $103.92         (5.3)%
 RevPAR                         $73.92        $69.71         (5.7)%

Embassy Suites
 Occupancy                        68.1 %        68.9 %        0.8 pts
 Average Rate                  $132.38       $124.25         (6.1)%
 RevPAR                         $90.12        $85.58         (5.0)%

Other
 Occupancy                        65.9 %        66.9 %        1.0 pts
 Average Rate                   $95.31        $91.68         (3.8)%
 RevPAR                         $62.80        $61.34         (2.3)%

Total U.S. Owned-or-Operated
 Occupancy                        68.3 %        69.0 %        0.7 pts
 Average Rate                  $132.93       $126.70         (4.7)%
 RevPAR                         $90.76        $87.43         (3.7)%

(1) Statistics are for comparable U.S. hotels, and include only those
     hotels in the system as of December 31, 2002 and owned or
     operated by Hilton since January 1, 2001.


                      HILTON HOTELS CORPORATION
                      System-wide Statistics (1)

                                  Three Months Ended
                                      December 31
                                   2001         2002      %/pt Change

Hilton
   Occupancy                       58.9 %       64.1 %        5.2 pts
   Average Rate                 $124.65      $126.75          1.7 %
   RevPAR                        $73.42       $81.30         10.7 %

Hilton Garden Inn
   Occupancy                       58.8 %       61.1 %        2.3 pts
   Average Rate                  $94.39       $94.33         (0.1)%
   RevPAR                        $55.51       $57.61          3.8 %

Doubletree
   Occupancy                       59.0 %       61.8 %        2.8 pts
   Average Rate                 $100.28       $99.61         (0.7)%
   RevPAR                        $59.18       $61.53          4.0 %

Embassy Suites
   Occupancy                       61.6 %       64.5 %        2.9 pts
   Average Rate                 $117.82      $116.76         (0.9)%
   RevPAR                        $72.55       $75.31          3.8 %

Homewood Suites by Hilton
   Occupancy                       65.0 %       67.8 %        2.8 pts
   Average Rate                  $93.48       $92.38         (1.2)%
   RevPAR                        $60.77       $62.66          3.1 %

Hampton
   Occupancy                       60.5 %       61.4 %        0.9 pts
   Average Rate                  $74.28       $75.10          1.1 %
   RevPAR                        $44.92       $46.08          2.6 %

Other
   Occupancy                       49.2 %       61.9 %       12.7 pts
   Average Rate                 $132.44      $129.09         (2.5)%
   RevPAR                        $65.17       $79.94         22.7 %


                                 Twelve Months Ended
                                      December 31
                                  2001          2002      %/pt Change

Hilton
   Occupancy                      67.4 %        68.1 %        0.7 pts
   Average Rate                $131.84       $127.16         (3.5)%
   RevPAR                       $88.92        $86.61         (2.6)%

Hilton Garden Inn
   Occupancy                      64.0 %        66.1 %        2.1 pts
   Average Rate                $101.25        $96.87         (4.3)%
   RevPAR                       $64.77        $64.07         (1.1)%

Doubletree
   Occupancy                      66.6 %        66.1 %       (0.5)pts
   Average Rate                $106.05       $101.01         (4.8)%
   RevPAR                       $70.61        $66.76         (5.5)%

Embassy Suites
   Occupancy                      68.0 %        69.3 %        1.3 pts
   Average Rate                $126.14       $120.00         (4.9)%
   RevPAR                       $85.77        $83.18         (3.0)%

Homewood Suites by Hilton
   Occupancy                      70.9 %        72.7 %        1.8 pts
   Average Rate                 $98.83        $94.30         (4.6)%
   RevPAR                       $70.04        $68.53         (2.2)%

Hampton
   Occupancy                      66.7 %        67.1 %        0.4 pts
   Average Rate                 $77.21        $77.01         (0.3)%
   RevPAR                       $51.47        $51.66          0.4 %

Other
   Occupancy                      59.7 %        61.3 %        1.6 pts
   Average Rate                $138.79       $124.87        (10.0)%
   RevPAR                       $82.81        $76.49         (7.6)%

(1) Statistics are for comparable hotels, and include only those
     hotels in the system as of December 31, 2002 and owned, operated
     or franchised by Hilton since January 1, 2001.


                            HILTON HOTELS CORPORATION
                      Supplementary Statistical Information

                             December                     Change to
                     2001               2002           December 2001
                   Number of          Number of          Number of
               Properties  Rooms  Properties  Rooms  Properties Rooms
Hilton
 Owned               38   27,519       39     28,985       1   1,466
 Leased               1      499        1        499       -       -
 Joint Venture        6    3,104        6      2,291       -    (813)
 Managed             15    9,970       17     10,601       2     631
 Franchised         169   44,971      168     45,334      (1)    363
                    229   86,063      231     87,710       2   1,647
Hilton Garden Inn                                             
 Owned                1      162        1        162       -       -
 Joint Venture        2      280        2        280       -       -
 Franchised         122   16,846      158     21,655      36   4,809
                    125   17,288      161     22,097      36   4,809
Doubletree                                                    
 Owned                9    3,156        9      3,156       -       -
 Leased               6    2,151        6      2,151       -       -
 Joint Venture       30    8,277       30      8,541       -     264
 Managed             61   16,870       57     15,702      (4) (1,168)
 Franchised          45   10,434       52     11,792       7   1,358
                    151   40,888      154     41,342       3     454
Embassy Suites                                                
 Owned                5    1,023        5      1,023       -       -
 Joint Venture       23    6,339       24      6,581       1     242
 Managed             61   15,771       61     15,589       -    (182)
 Franchised          79   18,202       79     17,949       -    (253)
                    168   41,335      169     41,142       1    (193)
Homewood Suites                                               
by Hilton                                                    
 Owned                7      905        7        905       -       -
 Managed             29    3,473       30      3,605       1     132
 Franchised          68    7,225       84      9,218      16   1,993
                    104   11,603      121     13,728      17   2,125
Hampton                                                       
 Owned                1      133        1        133       -       -
 Managed             27    3,570       25      3,268      (2)   (302)
 Franchised       1,116  114,103    1,180    119,640      64   5,537
                  1,144  117,806    1,206    123,041      62   5,235

Timeshare            25    2,911       27      3,117       2     206

Other                                                         
 Owned                4      638        1        300      (3)   (338)
 Leased               2      186        -          -      (2)   (186)
 Joint Venture        4    1,604        3      1,400      (1)   (204)
 Managed             17    4,122       11      3,239      (6)   (883)
 Franchised          13    3,043        -          -     (13) (3,043)
                     40    9,593       15      4,939     (25) (4,654)

Total                                                         
 Owned               65   33,536       63     34,664      (2)  1,128
 Leased               9    2,836        7      2,650      (2)   (186)
 Joint Venture       65   19,604       65     19,093       -    (511)
 Managed            210   53,776      201     52,004      (9) (1,772)
 Timeshare           25    2,911       27      3,117       2     206
 Franchised       1,612  214,824    1,721    225,588     109  10,764

TOTAL PROPERTIES  1,986  327,487    2,084    337,116      98   9,629

Travelers with disability could spend $27 billion per year, says new Harris Interactive poll

The Open Doors Organization in cooperation with the Travel Industry Association of America (TIA) and the Society for Accessible Travel and Hospitality (SATH) released a landmark study on the spending trends and market scope of U.S. resident travelers with disabilities. The study, conducted by Harris Interactive, polled 1,037 people with disabilities. The major findings of this groundbreaking study were released on January 16, 2003 at the 7th Annual SATH World Congress in Miami.

The study suggested that people with disabilities could spend at least $27 billion per year, if certain needs were met. These include a "meet and greet" at airports and preferred seating as top issues for the airlines while lodging issues include the need for rooms close to amenities and staff members that go out of their way to accommodate guests with disabilities. People with disabilities spent $13.6 billion on 31.7 million trips in the past year. The modifications suggested by the survey could increase expenditures by people with disabilities by 100% per year.  

In 2001, the airline industry saw $3.3 billion in spending by travelers with disabilities, resulting in 52,800 jobs created to provide services for people with disabilities. The lodging industry saw $4.2 billion in spending and 60,000 jobs. The study also suggested that people with disabilities could at least double their spending generating $6.4 billion for airlines and $8.4 billion for lodging if the needs of travelers with disabilities were addressed. Currently travelers with disabilities generate a total of 194,000 travel-related jobs, $4.22 billion in payroll and $2.52 billion in tax revenues in the U.S.  

The study was conducted to measure general travel behaviors including how often people with disabilities travel, with whom they travel, how much they spend while on the road, the mode of transportation and accommodations used, and on which sources of information they rely to make decisions. The study provides information that travel industry and related businesses will find invaluable as they seek to stem large losses following the terrorist acts of 9/11/01. 

The upside potential for both the economy and the travel industry is highly significant. TIA participated in the study in a consulting capacity, advising in the questionnaire design and validating the study and its findings against TIA's substantial market and economic research resources for the U.S. travel industry. The Open Doors Organization is a not-for-profit corporation founded for the purpose of teaching businesses how to succeed in the disability market and to provide direct support to people with disabilities. 

The organization creates comprehensive programs and services that offer training and consultation and market statistics to both the public and private sectors. For more information, go to www.opendoorsnfp.org, email info@opendoorsnfp.org or call 312-640-5000 extension 222.  

Cambodia Welcomes the World

eTurbo.com   -  The opening ceremony for the year's ASEAN Tourism Forum (ATF) was held here on Friday at the Samdech Hun Sen Garden. The grand dinner celebration included long speeches, a lavish display of fireworks, and, some singing and dancing. The event was a sure indication that Cambodia is indeed serious about pushing for tourism. The ATF opening ceremony also signaled the launching of Cambodia's marketing bid to push for tourism called Visit Cambodia year 2003: World of Treasures, which is intended to be a yearlong showcase highlighting the best Cambodia's tourism has to offer.

Mayor of Phnom Penh, Chea Sophara, who spoke in local language and then delivered his speech in English, was the first one to welcome the delegates, followed shortly thereafter by Cambodia's minister of tourism, Veng Sereyvuth. In his speech, Sereyvuth mentioned that ensuring the safety and security of travelers is of paramount concern. He also stated that the industry must be protected by reviewing the matter of international travel advisories and assessing how to influence and manage the accuracy and effectiveness such communications.

Other speakers at the opening ceremony were Deputy Prime Minister Sar Keng and Prime Minister Hun Sen. Kheng, in his speech, said that he strongly hopes that the ATF will provide opportunities for mutual exchange of ideas and strategies for strengthening the region potentials through good cooperation among the member countries. He further challenges the ASEAN to set up a common plan on tourism safety and security, facilitation of intra-ASEAN and international travel, and facilitation of transport services. Prime Minister Hun Sen, on the other hand, detailed the ambitious and long term vision for tourism development beyond ASEAN to include strengthening cooperation with China, Japan, Korea and India "to transform the whole of East Asia and South Asia into one of the most attractive and powerful tourism destinations in the world." Sen said that such strength will be brought about by taking full advantage of the region's combined historical and cultural heritage, natural resources and common aspirations of solidarity, cooperation, development, progress and prosperity.

Cambodia has indeed survived the wrath of war and horrific regimes and is well on its way to becoming a viable vacation destination. Its tourism officials seem to be on the right track evident from this year's ASEAN Tourism Forum. With the smiling faces of its people, it is hard to imagine that not too long ago Cambodia site to such magnitude of human atrocities. The message from Cambodia is clear- they want to put the war behind them. -by Nelson Alcantara from Phnom Penh-

Mayors urged to join forces to revive tourism

(AP) -- Cities should join forces, not compete, for tourism dollars in a national effort to revive the industry battered by the terrorist attacks, Atlanta's mayor told her colleagues Friday.

"As tourism goes, so goes the economy and the economic well-being of our community," Mayor Shirley Franklin said at the U.S. Conference of Mayors winter meeting.

The Senate approved a $390 billion spending bill Thursday that designates $50 million to help cities establish an international marketing campaign for travel and tourism. But the money is not included in the House version, expected to be debated next week.

The largest 100 metropolitan areas have lost 536,000 jobs and $22.6 billion since the end of 2000, according to a study by the mayors' conference. Much of the losses occurred after September 11, 2001.

Jonathan Tisch, who leads New York's tourism initiative, said business travel spending in the nation's largest city has dropped significantly since the attacks.

"The type of trip they are taking is changing," said Tisch, chairman of the Travel Business Roundtable. "They used to come for four nights. Now they come for two nights."

Tisch said tourism is the nation's second-largest employer, with 18 million people making a living -- at least indirectly -- off the industry. It generates $582 billion a year in spending, and $100 billion in federal, state and local taxes.

ASEANTA gets new president

AsiaTraveWeeky  -  The ASEAN Tourism Association (ASEANTA) has set as its priority the launch of the Kuala Lumpur-based secretariat, the propagation of intra-ASEAN travel, and the provision of more efficient services to its members.

Malaysian hotelier, Argus Salim, who is also president of AHRA (ASEAN Hotel and Restaurant Association), is the new president.

Argus’ election came about through the change in the ASEANTA constitution so that its president is elected rather than appointed from within the host country of the ASEAN Tourism Forum. This has been done to ensure continuity.

The appointment is for two years, with an option of extension for another two years (two plus two).

Elected alongside Argus is Elly Hutabarat of PanTravel in Indonesia as ASEANTA's deputy president and Tunku Dato’ Seri Iskandar Tunku Abdullah, president of the Malaysian Association of Tour and Travel Agents, as its secretary general.

“ASEANTA’s priority is the setting up of the secretariat in Kuala Lumpur and to come up with programmes to make it self-sufficient and self-funding,” said Argus.

SA seeks to lure US tourists

Business Day - South African Tourism has officially launched its new consumer marketing campaign in New York with two value-for-money holiday deals aimed at key segments in the US market.

The packages sell from between $1,999 and $2,999. Both promise to deliver a significant boost to increasing tourist arrivals, encouraging geographic spread and improving seasonality.

"Tourism is a vital component of the South African economy and as such, it needs to be supported with aggressive advertising and marketing initiatives that drive the demand for travel to our country," said Moeketsi Mosola, South African Tourism's chief operating officer.

Latest available figures show the leading source country of overseas arrivals to SA is the UK, at 31,213 (20.2%).

This is followed by Germany, 24,107 (15.6%), and the US, 15,847 (10.2%).

Next is the Netherlands, 11,005 (7.1%); France, 8,349 (5.4%); Australia, 7,317 (4.7%); Italy, 4,011 (2.6%) and Switzerland, 3,481 (2,3%).

"While the campaign is indeed designed to drive awareness of South Africa as a preferred tourist destination, our goal is also to meet the government's objectives of sustainable growth, job creation and industry contribution to gross domestic product," Mosola said.

Mosola said the initiative was aimed at two key segments in the US markets - the "Upscale Wanderlusters" and "Next Stop South Africa".

He said in terms of their profile, "Next Stop South Africa" travellers were an active and slightly older target market of which 78% were over 55 years old and 41% were retired.

This target market had extensive travel experience and the desire, time and money to support their visits, Mosola said.

They were the least cost-conscious travellers, demanded value for money and were expected to be lured to South Africa at a starting price of $2,999 (about R26,000).

The price included return international flights, 12 nights accommodation and safari.

The "Upscale Wanderlusters" had - through intensive research - been identified as being more interested in travel than any other US segment.

They visited destinations they were comfortable with, but also looked for new places that offered both "soft" adventure and relaxation.

A predominantly male group (60%), this target market had an open mind about the world but was more cost conscious than the first group, Mosola said.

The starting price for this group was $1,999 - including return international flights, eight nights accommodation and safari - and represented exceptional value for a South African experience.

Both deals are being promoted through magazine and newspaper advertising, direct mail, and online and retail promotions.

Personnel Record Retention Requirements

There is no law whose sole purpose is to impose a retention requirement for records on non-hired candidates and/or employees. There are, however, a variety of federal regulations – most notably those designed to combat discrimination and other unfair labor practices – for which record retention is a condition of compliance. Below is an overview of how your responsibility to retain a variety of personnel-related records is affected by these laws.

Job Advertisements and Postings

Pursuant to the Americans with Disabilities Act (ADA), Age Discrimination in Employment Act (ADEA), and Fair Labor Standards Act (FLSA), job advertisements and internal postings should be retained for a minimum of one year.

Resumes and Applications

The ADA, Rehabilitation Act, Title VII of the Civil Rights Act, and ADEA require employers to keep all resumes and job applications on file for one year. Because the ADEA further stipulates a two-year retention period for paperwork for individuals over the age of 40 (something that may be difficult to determine and is, of course, illegal to ask), consider making it your policy to hold onto all resumes and applications for that long.

Employment Action Records

Records relating to promotions, demotions, transfers, and terminations must be retained for one year according to the ADA, ADEA, and Title VII. While training records, in general, should also be kept on file for one year, those related to safety and health must be retained for three years in accordance with the Occupational Safety and Health Act (OSHA).

Wage and Hour Records

The FLSA and Equal Pay Act oblige you to keep basic employment and earnings records for two years and payroll records for three years.

Tax Records

Information relating to income tax withholdings must be retained for four years according to the Federal Insurance Contribution Act (FICA) and Federal Unemployment Tax Act (FUTA).

Retirement and Pension Records

The Employee Retirement Income Security Act (ERISA) mandates that employee benefit plan information, including summary plan descriptions (SPDs) and annual reports, be kept on file for six years.

Leave Records

Information relating to leaves of absence under the Family Medical Leave Act (FMLA), such as time off and medical certification, must be retained for three years.

I-9 Forms

Under the Immigration Reform and Control Act of 1986 (IRCA), I-9 forms must be retained for three years after employment begins or one year following termination (whichever is later).

Job-Related Illness and Injury Records

OSHA requires that information pertaining to job-related illness and injury be kept on file for five years. In cases of exposure to toxic substances or blood-borne pathogens, medical exam results must be retained for 30 years after the employee's termination.

Conclusion

Adhering to the federal record retention requirements described in this article is an important first step in protecting your organization from liability.

Intended only as an overview, the above list of recordkeeping requirements is far from exhaustive. Your organization may be subject to other federal laws, in addition to state-level laws that may be even more stringent.

If you are starting a business or are new to the field of Human Resources, you are encouraged to seek the advice of an employment law attorney for a more comprehensive explanation of your responsibilities under the law.

Copyright © 2000-2002 Christina Morfeld and Affinity Business Communications, LLC. Originally published by Suite101.com. All rights reserved

About the Author:

Christina Morfeld is president of Affinity Business Communications, a provider of high-quality instructional design, technical writing, and content development solutions. Whether writing to instruct, inform, or persuade, our work is reader-focused, benefits-oriented, and results-driven.

Contact us at 203-445-9964 or info@affinitybizcomm.com , or visit our website at http://www.affinitybizcomm.com  to learn how we can increase your firm's sales and effectiveness!

500,000 foreign tourists visit Myanmar in 2002

 (Xinhua) --Myanmar received nearly 500,000 foreign tourists in 2002 with an income of 100 million US dollars, the local weekly Myanmar Times reported in its latest issue.

The report quoted Mandalay Mayor Brigadier-General Yan Thein as saying that Myanmar plans to absorb up to one million tourists this year.

The mayor attributed the increase of the number of foreign tourists to border tourism, in which more than 270,000 visitors made one-day trips or longer.

As many as 90,000 tourists entered through Shan state's China gateway, while 142,000 travelers came in from Thailand through Myanmar's southeastern corridor, the Myanmar tourism authorities said.

Myanmar has bilateral cooperation agreements on tourism with China and Thailand, both of which are main suppliers of cross-border tourists to the country.

Myanmar has been making efforts to promote its tourist industry by building more hotels and attracting foreign investment in the sector.

Official statistics show that there are 42 state-owned hotels with 1,402 rooms, while there are 498 local private-run hotels, motels and inns with 11,292 rooms in the country.

Since Myanmar opened to foreign investment in 1988, the number of hotel projects had reached 40 as of late 2002 with an amount of 1.235 billion dollars.

Meanwhile, at the beginning of 2001, Myanmar lowered the requirement for travelers to exchange 300 dollars with local currency on arrival, bringing the amount down to 200 dollars.

Other measures include allowing Chinese tourists to use the Chinese currency yuan during their stay in Myanmar.

In order to attract more foreign tourists, it is reported that Myanmar will soon grant visas-on-arrival for individual travelers on some designated foreign carriers

Abacus increases Thai presence with new office

TravelWeeklyEast.com  -  Abacus Distribution Systems (Thailand) has expanded to new offices in Bangkok as part of its strategy to increase its presence in Thailand.

Abacus President and CEO Don Birch commented, “Thailand is a priority for us and most importantly, our customers. Thailand, as an aviation and tourism centre, continues to grow, and our customers will need even stronger solutions here. Our customers will benefit from faster decision making and an improved ability to respond to the market. We are always looking at ways to enhance our capabilities, solutions and services for our customers across Asia”.

Abacus plans to invest substantially in marketing its products and services this year. It will also open an additional office in Khon Kaen to facilitate expansion into the Laos market.

Presently, Abacus in Thailand provides travel services and solutions in each of its six offices, which are located in Bangkok, Pattaya, Phuket, Had Yai, Koh Samui and Chiang Mai.

In addition to formally opening its new offices, Abacus also made a charitable donation to the Baan Kru Noi Foster Home, which provides housing and education to poor and abandoned children between the ages of three and 18.

Bali fails to stop Aussie travel bug
 
Courier Mail  -  Australians are travelling overseas in greater numbers but are avoiding traditional Asian destinations for regions such as Vietnam and China.

The Australian Bureau of Statistics yesterday revealed outbound tourism grew by 10.4 per cent in November 2002 -- the equivalent of an extra 24,000 people -- compared with November 2001.

The figures show Bali, ravaged by terror attacks in October, suffered hardest from a drop-off in Australian travel, with numbers to Indonesia down by 8000 people in the month.

Departures to Singapore and the Philippines (down 1000 people each) both fell, but Fiji (up 3000), New Zealand (up 3000), Vietnam (up 3000), China (up 4000) and the US (up 4000) recorded significant rises in Australian travellers.

"It has come through loud and clear that Australians did in fact change their travel plans following Bali, but they did not stop travelling overseas, with an even greater number of people deciding to travel overseas in the month after the bombings in Bali," Tourism Taskforce deputy chief executive Stephen Albin said.

However, Mr Albin predicted another "soft" year for inbound tourism because of global market uncertainty.

This followed ABS preliminary arrival figures showing a shortfall of 30,000 people in 2002 compared with the year before, despite a recovery from the Japan (6.3 per cent) and the United Kingdom (3.5 per cent), and growth from China (20.7 per cent), Korea (8.2 per cent) and Malaysia (6 per cent).

Australian Tourist Commission managing director Ken Boundy said "full (inbound) recovery is not guaranteed" despite positive trends from key inbound markets.

Mr Boundy said Cairns-based Australian Airlines introduction into Asia, primarily servicing Japan, was fostering a recovery.

Virgin Blue, voted the world's best low-cost carrier by aviation monitoring group Travel Quality, yesterday announced it would add a third daily service between Brisbane and Cairns as a result of demand generated by Australian Airlines arrivals.

Mr Boundy said the UK, Australia's third largest inbound market, would be the focus of a campaign launched next week in a bid on consolidate growth.

In Queensland, Tourism Minister Merri Rose said China (114 per cent increase), Thailand (24 per cent), Canada (25 per cent), Korea (7 per cent), Germany (6.5 per cent) and the UK (5.3 per cent) had increased.

Tourism Queensland, the ATC and Qantas were jointly spending $ 3.5 million in marketing aimed at luring US visitors back to Queensland, with ABS figures indicating an encouraging Australia-wide trend relating to US visitors. Last year overall arrival figures were up by 3 per cent compared with 2001.

To join the Forum for free, Click Here