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Newsletter - April 24, 2003
In
the firing line
This
article first appeared in HOTEL Asia Pacific
As hotels
continue to cut back on staff, your head could be next on the chopping
block – but are you fully prepared to cope if you get your marching
orders? Human resources expert and HOTEL Asia
Pacific columnist Mark Keith gives some timely advice on how to
prepare for the worst-case scenario
YOU
get the call from the director of human resources, and your stomach sinks.
"Thanks for all your great work for the company," she says.
"But, things being the way they are, we have to let your go. I'm sure
you understand."
Most
people, when they lose their job, are traumatised. The shock, coupled with
fear and anxiety, leaves them feeling vulnerable and hurt, and often
shatters their confidence to look ahead with certainty.
But,
today, it's a harsh fact of life that you could be laid off - and it's
something you should plan for so that, if it happens, you will be ready to
view it as an opportunity rather than a disaster.
A
sound basic rule is that it is easier to find a new job when you already
have one but, if you do find yourself unemployed, it's a lot easier to
cope if you have already planned for the eventuality.
"Coping"
usually boils down to having funds available to manage the crisis, and
having thought about your course of action in this "what-if"
scenario.
Rather
than taking an "it can't happen to me" attitude, you should
start organising your "disaster contingency plan" now - just in
case the unthinkable happens to you.
For an
expatriate hotelier who enjoys free accommodation as a key benefit of the
job, being laid off could result in having nowhere to live.
Allocate
a portion of your personal financial portfolio to your disaster fund,
allowing for at least six months' rent and living expenses. Select in
advance a handy bolt hole - a comfortable and affordable location to
regroup and recharge your batteries while looking for a new job.
With
such a back-up plan in place, it is less stressful to consider the various
courses of action and to plan accordingly. It also allows you the luxury
of choosing carefully your next career move.
Unfortunately,
a career downward spiral often happens when a poor choice is made during
times of desperation or stress. This can lead to a catastrophic career
event getting even worse and developing into a career meltdown, destroying
in one cruel, fell swoop all the previous successful years.
Almost
as bad as losing your job is being stuck in the wrong job.
As
many readers are probably all too aware, good jobs can turn bad, a new
boss can turn a dream job into a nightmare or a particular position might
be leading you nowhere.
Whether
you find yourself jobless, stuck in a dead-end rut or contemplating your
next move, it is essential that you take a strategic approach to planning
your career.
The
first step is to reflect objectively on the "journey so far".
When
asked about their career plans, many hoteliers respond in terms of merely
"the next step", "the next promotion", or "the
move to a company that offers a more favourable career opportunity".
When
questioned about how they envisage the next 10 years, a common answer is:
"Well, let's take one step at a time".
This
usually indicates a lack of strategic career planning, which is
underscored by many of the thousands of resumes that have passed over my
desk over the years.
The
alarm bells always start ringing when I receive resumes from candidates
which indicate they have:
•
Jumped from one company to another at every stage of their career;
• Accepted a job [which turned out to be
disappointing] without carrying out diligent research;
• Indicated a successful working history that is not accompanied by a
corresponding and continuous approach to education; or
• Time gaps in their professional experience, which may indicate an
untimely exit from an unsuitable job.
Companies
understand these issues and they look for evidence. But, above all, they
look for competence, which is often expressed in the following behaviours
and skills:
• Social skills and team abilities;
• Relevant professional knowledge;
• Analytical, problem-solving, decision and judgment skills;
• "Performance management"of others;
• Creativity and innovation;
• Emotional resilience and pro-activity; and
• A strong service orientation.
A
long-term career plan can enable you to see the strategic value of a job
that is not providing immediate satisfaction, and help you endure an
unpleasant stage in your career that is necessary to position you for your
next move. Positioning yourself for a career move in the hospitality
industry is all about being perceived as being able to do the job well,
and not just looking the part.
Career
positioning contains all the elements of a good marketing strategy. Here
are some guiding principles:
•
The best indicator of future performance is past performance which means
that, to give the impression that you will do a good job, you have to have
been doing your current job well;
• The best way to get an upward career move is through a promotion
within your existing company. They know you, your strengths and
weaknesses, and they appoint you based on an assessment of your
competence.
As
they are the ones who made the decision, they will also support you and
encourage you as you learn to operate at the new level.
• If
you want to join another company that is either a better-quality employer
of offers greater career opportunity, you will likely need to move into a
similar position to the one you currently hold. Getting a position
promotion when joining a new company is usually accompanied by a
compromise in terms of location, compensation or standard of operation.
The
hospitality industry remains one of the few where "starting at the
bottom" is still a practised route to the top. Plus, of course, a
little luck but, as one of the leading hotel schools puts it: "Luck
is the dividend of sweat".
The
last word goes to a successful executive on the secret of his success:
"If you want to get run over by a train, you have to be on the
railway tracks".
Mark Keith, MD of HVS
Executive Search based in Hong Kong, has more than 25 years’ experience
in international human-resource management, including senior positions
with the Hongkong & Shanghai Hotels, Holiday Inns Worldwide, Mandarin
Oriental, InterContinental and Hilton.
WHO extends SARS travel
warnings to Toronto, Beijing, Shanxi
(Reuters) - The World Health Organisation (WHO)
warned on Wednesday against travel to Beijing, China's Shanxi province and
Canada's business capital Toronto to try to halt the global spread of the
deadly SARS virus.
The recommendation to postpone non-essential travel to the three areas will
be in effect for at least three weeks, twice the maximum incubation period,
David Heymann, WHO director of communicable diseases, told reporters.
On April 4, the United Nations agency warned international travelers
against going to the southern Chinese province of Guangdong, where SARS, or
severe acute respiratory syndrome, is believed to have begun, and Hong Kong.
"Today we are making further recommendation in that we are going to
recommend people who have unnecessary travel to Shanxi, Beijing and to Toronto
postpone travel if possible," Heymann told reporters by telephone from
Bangkok.
"As was the case for Hong Kong and Guangdong, we now have
(additionally) these areas which have a high magnitude of disease, a great
risk of transmission locally and have also been exporting cases to other
countries," he said.
The illness, whose symptoms include high fever, a dry cough and difficulty
in breathing, has killed more than 250 people around the world.
Most patients survive, but health officials say the mortality rate has
risen from four percent to 5.9 percent and there is no known cure.
Beijing, a city of 14 million people, has reported almost 700 SARS cases
and 35 deaths, out of 106 nationwide. Shanxi has the third highest number of
cases in China, 157 cases with seven deaths, according to health ministry
figures.
Canada has reported 306 suspected or probable cases with 14 deaths,
including 136 cases in Ottawa province.
Hilton Reports First Quarter 2003 Results
(BUSINESS WIRE)--April 23, 2003--Hilton Hotels
Corporation (NYSE:HLT) today reported financial results for the first quarter
ended March 31, 2003.
As announced previously by the company on March 27, business
declines related principally to the conflict in Iraq contributed to generally
soft results in the first quarter compared to the year-ago period. Room rate
pressure owing to weakness in business and group travel, along with increased
insurance costs, also adversely impacted the quarter's results.
Hilton reported first quarter net income of $9 million,
versus $34 million in the 2002 quarter. Diluted net income per share was $.02
in the first quarter 2003, compared with $.09 in the 2002 quarter. As
disclosed in the company's March 27 press release, first quarter 2003 net
income per share included two non-recurring items: 1) a charge (required by
current SEC guidance) of approximately $.03 per share related to the
impairment of certain public company equity securities held by the company,
and 2) a $.01 benefit from utilization of tax loss carryforwards.
Hilton reported 2003 first quarter total revenue of $917
million, compared with $921 million in the corresponding 2002 period. Total
company earnings before interest, taxes, depreciation, amortization and
non-recurring items (EBITDA(a)) was $197 million in the 2003 first quarter,
compared with $231 million in the 2002 quarter. Total operating income was $86
million, compared with $137 million in the 2002 first quarter.
Owned Hotels Results
Comparatively solid occupancy levels at many of the
company's owned hotels -- including those in New York, Boston, Honolulu, New
Orleans, Phoenix, San Diego and Santa Barbara -- were achieved primarily
through increased business from leisure customers and lower rated groups, and
were offset by average daily rate (ADR) declines owing to soft demand from
business travelers and higher rated groups. These rate declines impacted
revenue per available room (RevPAR) and, along with decreased food and
beverage revenue from sluggish group business, also adversely affected EBITDA
and operating income margins at these hotels. The company noted that, as a
company with hotels primarily in the United States, it has seen relatively
little effect on its total business as a result of the SARS situation.
However, it has seen a further weakening of the Japanese business in Hawaii
and in the international group market.
Across all brands, EBITDA and operating income from the
company's owned hotels (majority owned and controlled hotels) totaled $111
million and $52 million, respectively, in the first quarter. Comparable EBITDA
and operating income decreased 20 percent and 33 percent, respectively, from
the 2002 period. RevPAR from comparable owned properties decreased 2.2 percent
in the quarter; occupancy at these hotels increased to 66.8 percent from 66.5
percent a year ago, and ADR declined 2.7 percent to $145.82. EBITDA margin at
these hotels, which, along with the aforementioned factors, continued to be
impacted by increased insurance costs, was 23.3 percent for the quarter, a
decline of 510 basis points from the corresponding 2002 period. Operating
income margin at these hotels was 11 percent for the quarter, compared with 16
percent in the 2002 quarter.
System-wide RevPAR; Management/Franchise Fees
When compared with full-service hotels in gateway cities,
the company's focused service, midscale brands -- located primarily in
suburban or drive-to markets less dependent on air traffic -- were less
impacted by the conflict in Iraq and softness in business travel. As a result,
RevPAR at these brands showed generally smaller declines or, in the case of
Hilton Garden Inn, reported a RevPAR increase.
First quarter system-wide RevPAR at each of the company's
brands (including franchise properties) declined as follows: Hampton Inn, 1.2
percent; Embassy Suites, 1.8 percent; Homewood Suites by Hilton, 2.7 percent;
Doubletree, 3.3 percent; and Hilton 3.4 percent. The Hilton Garden Inn brand
reported a 2.0 percent RevPAR increase in the first quarter.
Management and franchise fees for the quarter totaled $80
million, compared with $81 million a year ago.
Brand Development/Unit Growth
Year-to-date February 2003 (the latest period for which data
is available), all but one of the company's hotel brands commanded significant
market share premiums over their respective segment competitors. With 100
representing a brand's fair share of the market, the Hilton brands (according
to Smith Travel Research) posted RevPAR index numbers as follows for the first
two months of 2003: Embassy Suites, 124.5; Homewood Suites by Hilton, 121.0;
Hampton Inn, 119.7; Hilton Garden Inn, 114.2; and Hilton, 109.1. The
Doubletree brand, at 98.2, showed a 1.5-point RevPAR index gain for the
two-month period.
In the first quarter, the company added 26 properties and
3,420 rooms to its system as follows: Hampton Inn, 18 hotels and 1,852 rooms;
Hilton Garden Inn, 2 hotels and 285 rooms; Embassy Suites, 2 hotels and 399
rooms; Hilton, 1 hotel and 205 rooms; Homewood Suites by Hilton, 1 hotel and
107 rooms; Conrad, 1 hotel and 400 rooms; and Hilton Grand Vacations, 1
property and 172 rooms. Three hotels and 549 rooms were removed from the
system in the quarter. As of March 31, 2003, the Hilton system consisted of
2,107 properties and 339,987 rooms.
Hilton Grand Vacations
The company's vacation ownership business, Hilton Grand
Vacations Company, reported first quarter EBITDA of $19 million, compared to
$23 million in the 2002 quarter. Operating income in the first quarter totaled
$18 million in 2003, compared with $22 million in the 2002 period.
While overall unit sales in the quarter were comparable with
the 2002 period, and the average unit sales price increased across the HGVC
system during the quarter, the required accounting for the company's new
projects in Orlando and Las Vegas (the first phases of which are still under
construction) and the accounting for the Hilton Club in New York, limited the
amount of reported EBITDA and operating income growth. First quarter results
were also impacted by the sale of timeshare receivables in June and November
2002.
Distribution Strategy
On April 14, 2003, Hilton announced an integrated strategy
related to electronic and on-line distribution. The strategy includes new
brand standards stating that, while each hotel will establish its own room
rates, each hotel is required to offer such rates consistently across all
designated distribution channels, including Hilton Family proprietary
websites, Hilton Reservations Worldwide call centers, Global Distribution
Systems/travel agents, and through hotels directly. In addition, enhancements
to the company's six major brand websites have been implemented as part of the
strategy. Hilton also signed an agreement in which Expedia Inc. is Hilton's
preferred third-party online merchant-model vendor. Under the agreement,
Hilton has secured from Expedia the most favorable merchant-model terms in the
hotel industry. Additionally, participating hotels are not required to commit
to Expedia a specific amount of room inventory.
Corporate Finance
At March 31, 2003, Hilton had total debt of $4.1 billion
(net of $325 million of debt allocated to Park Place Entertainment) with
approximately 26 percent of the company's debt being floating rate debt. Cash
and equivalents totaled approximately $61 million at March 31, 2003. The
company's average basic and diluted shares outstanding for the first quarter
were 377 million and 403 million, respectively.
The company's first quarter 2003 corporate expense includes
a $3 million bad debt expense related to a note receivable that, as a result
of certain events in the quarter, was deemed unlikely to be collected.
Consolidated net interest expense (interest expense net of
interest and dividend income) declined $5 million in the first quarter due to
lower average debt balances. Hilton's debt currently has an average life of
seven years, at an average cost of approximately 6.3 percent. At March 31,
2003, the company had approximately $1 billion of available capacity under its
various lines of credit.
The company's effective tax rate for the first quarter was
approximately 8 percent versus 39 percent last year. The effective tax rate in
the 2003 quarter benefited from the utilization of capital loss tax
carryforwards as a result of the transaction with CNL (described in the
following paragraph). Excluding this benefit, the effective tax rate in the
quarter was 38 percent.
During the quarter, Hilton completed the second of a planned
two-part transaction with CNL Hospitality Corp. in which the two companies
formed a partnership to acquire hotel properties. In the second phase of the
transaction, completed in February, the partnership acquired three Embassy
Suites hotels (one each in Orlando, Florida; Arlington, Virginia; and Santa
Clara, California); the Doubletree Crystal City in Arlington, Virginia; and
the Hilton Rye Town in Rye Brook, New York. Hilton operates the hotels under
long-term management contracts and retains a minority ownership interest in
the partnership.
Also during the quarter, the company sold four Homewood
Suites by Hilton properties for approximately $40 million, with Hilton
retaining long-term franchise and/or management agreements.
Total hotel capital expenditures in the quarter were $34
million. An additional $18 million was expended for timeshare development.
2003 Outlook
While Hilton expects a continued challenging environment for
the lodging industry due to soft economic conditions affecting business
travel, increased costs impacting margins and the prospect of further
uncertainty in the world political situation impacting travel generally, the
company anticipates improvement in the second half of the year. Noting that
visibility remains extremely low and that new estimates remain subject to
change, the company provided the following updated guidance for full year
2003:
Full Year 2003 Estimates
Total revenue $3.9 billion range
Total EBITDA/operating income $930 million range/$530 million
range
Comparable owned hotel RevPAR 1 - 2% decline
Diluted earnings per share High $.30 range
Total capital spending in 2003 is expected to be
approximately $360 million, with approximately $165 million being spent on
routine improvements and technology, $110 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 said it is well
underway in the remediation process, and is on track to re-open the hotel's
Kalia Tower guestrooms in Fall 2003.
Hilton reaffirmed its previous guidance of 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 51,000 rooms approved and in design,
or under construction.
Stephen F. Bollenbach, president and chief executive
officer, said: "What we anticipated would be a difficult period due to
continued economic weakness was made even more challenging by world events. We
remain confident, however, that demand will return as the war winds down and
improvement occurs in the U.S. economy, and travelers -- especially business
travelers -- resume more normal travel patterns. Despite the challenges, we
were able to maintain solid occupancy levels in most of our larger markets,
though changes in the mix of business made it difficult to achieve room rate
growth and maintain our margins.
"Contributing to our challenges are rising costs that
put additional pressure on margins, and while cost containment continues to be
a top priority, it is important that we balance this with offering the service
necessary to meet our customers' expectations and enhance customer loyalty.
Simply put, it's a continuation of our focus on the basics of the business.
"More than ever, size, scale and distribution matter in
the lodging industry. Our size and scale enable us to enhance our distribution
capabilities -- in particular, the increasingly important area of on-line
distribution -- for the benefit of our customers. We are very enthusiastic
about our newly announced on-line distribution strategy, which will make it
even easier and more desirable for travelers to stay with Hilton and our
family of brands."
Mr. Bollenbach concluded: "The end of hostilities in
Iraq notwithstanding, we expect the remainder of this year to continue posing
challenges on the general economic front and in terms of increased costs. But
as a big company with great brands, irreplaceable owned assets in key markets
and a loyal base of customers, we are solidly positioned to work through these
challenges as we anticipate better days ahead."
(a) EBITDA (earnings before interest, taxes, depreciation,
amortization, and non-recurring items) should not be considered as an
alternative to any measure of operating results as promulgated under
accounting principles generally accepted in the United States (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.
We use 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-recurring items, such as asset write-downs and impairment losses, are also
excluded from EBITDA. 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,
interest and dividend income from investments related to operating activities
and non-recurring items to operating income. Prior to January 1, 2003, the
reconciliation of EBITDA to operating income included an adjustment for
pre-opening expense and included only the non-cash portion of non-recurring
items. These changes have no impact on EBITDA reported in the 2002 period.
Reconciliations of EBITDA to operating income are presented on the
Supplemental Financial Information of this press release.
Note: This press release contains "forward-looking
statements" within the meaning of federal securities law, including
statements concerning business strategies and their intended results, and
similar statements concerning anticipated future events and expectations that
are not historical facts. The forward-looking statements in this press release
are subject to numerous risks and uncertainties, including the effects of
economic conditions; supply and demand changes for hotel rooms; competitive
conditions in the lodging industry, relationships with clients and property
owners; the impact of government regulations; and the availability of capital
to finance growth, which could cause actual results to differ materially from
those expressed in or implied by the statements herein.
HILTON HOTELS CORPORATION
Financial Highlights (Unaudited)
(in millions, except per share amounts)
Three Months Ended
March 31,
2002 2003 % Change
----- ----- ----------
Revenue
Owned hotels $481 $483 -%
Leased hotels 29 24 (17)
Management and franchise fees 81 80 (1)
Other fees and income 99 91 (8)
----- ----- ---------
690 678 (2)
Other revenue from managed and franchised
properties 231 239 3
----- ----- ---------
921 917 -
Expenses
Owned hotels 345 372 8
Leased hotels 26 23 (12)
Depreciation and amortization 85 86 1
Impairment loss and related costs - 17 -
Other operating expenses 80 75 (6)
Corporate expense, net 17 19 12
----- ----- ---------
553 592 7
Other expenses from managed and franchised
properties 231 239 3
----- ----- ---------
784 831 6
Operating income 137 86 (37)
Interest and dividend income 14 7 (50)
Interest expense (87) (75) (14)
Net interest from unconsolidated affiliates (5) (5) -
Net loss on asset dispositions - (1) -
----- ----- ---------
Income before taxes and minority interest 59 12 (80)
Provision for income taxes (23) (1) (96)
Minority interest, net (2) (2) -
----- ----- ---------
Net income $34 $9 (74)%
===== ===== =========
Net income per share
--------------------
Basic $.09 $.02 (78)%
===== ===== =========
Diluted $.09 $.02 (78)%
===== ===== =========
Average shares - basic 370 377 2%
===== ===== =========
Average shares - diluted 396 403 2%
HILTON HOTELS CORPORATION
Supplemental Financial Information (Unaudited)
($ in millions)
Three Months Ended
March 31,
2002 2003 %/pt Change
------- ------ ------------
RECONCILIATIONS OF EBITDA(1) TO OPERATING INCOME
Total Company
-------------
EBITDA $231 $197 (15) %
Depreciation and amortization(2) (92) (93) 1
Non-recurring items - (17) -
Operating interest and dividend income (2) (1) (50)
------- ------- ------------
Operating Income $137 $86 (37) %
======= ======= ============
Owned Hotels
------------
EBITDA $136 $111 (18) %
Depreciation and amortization (60) (59) (2)
------- ------- ------------
Operating Income $76 $52 (32) %
======= ======= ============
Comparable Owned Hotels
-----------------------
EBITDA $133 $106 (20) %
Depreciation and amortization (58) (56) (3)
------- ------- ------------
Operating Income $75 $50 (33) %
======= ======= ============
Timeshare
---------
EBITDA $23 $19 (17) %
Depreciation and amortization (1) (1) -
------- ------- ------------
Operating Income $22 $18 (18) %
======= ======= ============
FULL YEAR 2003 OUTLOOK(3)
----------------------
EBITDA $930
Depreciation and amortization(2) (380)
Non-recurring items (17)
Operating interest and dividend income (3)
-------
Operating Income $530
=======
RECONCILIATIONS OF EBITDA MARGIN(4) TO OPERATING INCOME MARGIN(5)
--------------------------------------------------------------
Total Company
-------------
EBITDA Margin 33.5% 29.1% (4.4)pts
Depreciation and amortization(2) (13.3%) (13.7%) (0.4)
Non-recurring items - (2.5%) (2.5)
Operating interest and dividend income (0.3%) (0.2%) 0.1
------- ------- ------------
Operating Income Margin 19.9% 12.7% (7.2)pts
======= ======= ============
Comparable Owned Hotels
-----------------------
EBITDA Margin 28.4% 23.3% (5.1)pts
Depreciation and amortization (12.4%) (12.3%) 0.1
------- ------- ------------
Operating Income Margin 16.0% 11.0% (5.0)pts
======= ======= ============
(1) We use EBITDA (earnings before interest, taxes, depreciation,
amortization and non-recurring items) 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-recurring items, such
as asset write-downs and impairment losses, are also excluded from
EBITDA. 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, interest and dividend income from
investments related to operating activities and non-recurring
items to operating income. Prior to January 1, 2003, the
reconciliation of EBITDA to operating income included an
adjustment for pre-opening expense and included only the non-cash
portion of non-recurring items. These changes have no impact on
EBITDA reported in the 2002 period.
EBITDA should not be considered as an alternative to any measure
of operating results as promulgated under accounting principles
generally accepted in the United States (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.
(2) Includes proportionate share of unconsolidated affiliates.
(3) Represents a range of estimates. See discussion of forward-
looking statements elsewhere in this release.
(4) EBITDA margin represents EBITDA as a percentage of revenue before
other revenue from managed and franchised properties.
(5) Operating income margin represents operating income as a
percentage of revenue before other revenue from managed and
franchised properties.
HILTON HOTELS CORPORATION
U.S. Owned Statistics(1)
Three Months Ended
March 31,
2002 2003 %/pt Change
--------- --------- ------------
Hilton
------
Occupancy 66.7 % 66.7 % - pts
Average Rate $157.35 $153.27 (2.6) %
RevPAR $104.91 $102.17 (2.6) %
All Other
---------
Occupancy 65.4 % 67.7 % 2.3 pts
Average Rate $110.63 $107.72 (2.6) %
RevPAR $72.37 $72.94 0.8 %
Total
-----
Occupancy 66.5 % 66.8 % 0.3 pts
Average Rate $149.93 $145.82 (2.7) %
RevPAR $99.66 $97.45 (2.2) %
(1) Statistics are for comparable hotels, and include only those
hotels in the system as of March 31, 2003, and owned by us since
January 1, 2002.
HILTON HOTELS CORPORATION
System-wide Statistics(1)
Three Months Ended
March 31,
2002 2003 %/pt Change
--------- --------- ------------
Hilton
------
Occupancy 65.0 % 64.7 % (0.3)pts
Average Rate $130.74 $126.83 (3.0) %
RevPAR $84.93 $82.03 (3.4) %
Hilton Garden Inn
-----------------
Occupancy 60.6 % 62.6 % 2.0 pts
Average Rate $95.93 $94.60 (1.4) %
RevPAR $58.09 $59.23 2.0 %
Doubletree
----------
Occupancy 63.2 % 62.7 % (0.5)pts
Average Rate $102.86 $100.31 (2.5) %
RevPAR $65.05 $62.93 (3.3) %
Embassy Suites
--------------
Occupancy 67.5 % 67.7 % 0.2 pts
Average Rate $123.53 $120.96 (2.1) %
RevPAR $83.34 $81.83 (1.8) %
Homewood Suites by Hilton
-------------------------
Occupancy 69.8 % 68.9 % (0.9)pts
Average Rate $95.43 $94.16 (1.3) %
RevPAR $66.65 $64.84 (2.7) %
Hampton
-------
Occupancy 62.2 % 61.5 % (0.7)pts
Average Rate $77.14 $77.18 0.1 %
RevPAR $48.00 $47.44 (1.2) %
Other
-----
Occupancy 57.1 % 53.4 % (3.7)pts
Average Rate $116.23 $121.53 4.6 %
RevPAR $66.32 $64.86 (2.2) %
(1) Statistics are for comparable hotels, and include only those
hotels in the system as of March 31, 2003, and owned, operated or
franchised by us since January 1, 2002.
HILTON HOTELS CORPORATION
Supplementary Statistical Information
March
2002 2003
Number of Number of
Properties Rooms Properties Rooms
---------------------------------------
Hilton
------
Owned 38 27,520 38 28,568
Leased 1 499 1 499
Joint Venture 6 3,103 7 2,737
Managed 15 9,968 17 10,601
Franchised 170 45,350 168 45,213
------------------- -------------------
230 86,440 231 87,618
Hilton Garden Inn
-----------------
Owned 1 162 1 162
Joint Venture 2 280 2 280
Franchised 128 17,844 160 21,941
------------------- -------------------
131 18,286 163 22,383
Doubletree
----------
Owned 9 3,156 9 3,156
Leased 6 2,151 6 2,151
Joint Venture 30 8,273 30 8,868
Managed 60 16,651 57 15,375
Franchised 48 11,070 52 11,787
------------------- -------------------
153 41,301 154 41,337
Embassy Suites
--------------
Owned 5 1,023 5 1,023
Joint Venture 23 6,339 27 7,279
Managed 61 15,589 57 14,699
Franchised 79 18,301 82 18,540
------------------- -------------------
168 41,252 171 41,541
Homewood Suites by Hilton
-------------------------
Owned 7 905 3 398
Managed 30 3,605 34 4,135
Franchised 70 7,513 85 9,302
------------------- -------------------
107 12,023 122 13,835
Hampton
-------
Owned 1 133 1 133
Managed 26 3,443 23 3,018
Franchised 1,134 115,856 1,198 121,502
------------------- -------------------
1,161 119,432 1,222 124,653
Timeshare 25 2,921 28 3,289
---------
Other
-----
Owned 3 579 1 300
Leased 2 186 - -
Joint Venture 4 1,598 3 1,392
Managed 18 4,154 12 3,639
Franchised 13 3,043 - -
------------------- -------------------
40 9,560 16 5,331
Total
-----
Owned 64 33,478 58 33,740
Leased 9 2,836 7 2,650
Joint Venture 65 19,593 69 20,556
Managed 210 53,410 200 51,467
Timeshare 25 2,921 28 3,289
Franchised 1,642 218,977 1,745 228,285
---------------------------------------
TOTAL PROPERTIES 2,015 331,215 2,107 339,987
=======================================
Change to
March 2002 December 2002
Number of Number of
Properties Rooms Properties Rooms
------------------ -----------------
Hilton
------
Owned - 1,048 (1) (417)
Leased - - - -
Joint Venture 1 (366) 1 446
Managed 2 633 - -
Franchised (2) (137) - (121)
------------------ -----------------
1 1,178 - (92)
Hilton Garden Inn
-----------------
Owned - - - -
Joint Venture - - - -
Franchised 32 4,097 2 286
------------------ -----------------
32 4,097 2 286
Doubletree
----------
Owned - - - -
Leased - - - -
Joint Venture - 595 - 327
Managed (3)(1,276) - (327)
Franchised 4 717 - (5)
------------------ -----------------
1 36 - (5)
Embassy Suites
--------------
Owned - - - -
Joint Venture 4 940 3 698
Managed (4) (890) (4) (890)
Franchised 3 239 3 591
------------------ -----------------
3 289 2 399
Homewood Suites by Hilton
-------------------------
Owned (4) (507) (4) (507)
Managed 4 530 4 530
Franchised 15 1,789 1 84
------------------ -----------------
15 1,812 1 107
Hampton
-------
Owned - - - -
Managed (3) (425) (2) (250)
Franchised 64 5,646 18 1,862
------------------ -----------------
61 5,221 16 1,612
Timeshare 3 368 1 172
---------
Other
-----
Owned (2) (279) - -
Leased (2) (186) - -
Joint Venture (1) (206) - (8)
Managed (6) (515) 1 400
Franchised (13)(3,043) - -
------------------ -----------------
(24)(4,229) 1 392
Total
-----
Owned (6) 262 (5) (924)
Leased (2) (186) - -
Joint Venture 4 963 4 1,463
Managed (10)(1,943) (1) (537)
Timeshare 3 368 1 172
Franchised 103 9,308 24 2,697
------------------ -----------------
TOTAL PROPERTIES 92 8,772 23 2,871
================== =================
CONTACT: Hilton Hotels Corporation Marc Grossman, 310/205-4030
marc_grossman@hilton.com http://www.hiltonworldwide.com
SOURCE: Hilton Hotels Corporation
|
New dates
for the IH&RA 40th Annual Congress
TravelDailyNews.com - The
International Hotel & Restaurant Association (IH&RA) 40th Annual
Congress has been rescheduled to take place in Cairo, Egypt 5-9 December
2003, instead of the previously announced dates of 3-7 October 2003.
This decision was made in response to the impact of recent world events on
hospitality and tourism, the notable shifts in tourism supply and demand
and the current trend of travellers postponing or delaying business and
leisure travel due to economic factors. These trends and their impact on
hospitality and the global tourism industry will be the focus of the
Congress which includes a four-day educational program featuring leading
hospitality industry professionals and industry analysts discussing the
challenges of "Managing Through Rapidly Changing Times."
"The decision to reschedule the IH&RA 40th Annual Congress was
taken after careful consideration and consultation with our members, with
the international organizations with which we work and with our industry
partners in the private sector," said Alain-Philippe Feutre, IH&RA
CEO. IH&RA members include national hotel and restaurant associations
in some 100 countries around the globe and international and national
hotel and restaurant chains representing some 50 brands. Through its
national association membership, IH&RA represents small and
medium-sized hospitality enterprises (SMEs) all over the world, which
account for the major share of the international hospitality market.
Through its chain membership, IH&RA represents major hospitality
corporations operating globally or regionally.
IH&RA is the only Association exclusively dedicated to representing
hotels and restaurants worldwide with International Non-Governmental
Organisation status with the United Nations (UN). The Association has
long-standing ties with the UN and its specialized agencies such as the
International Labour Organization, the World Tourism Organisation, the
World Trade Organisation, the United Nations Environment Programme, as
well as inter-governmental agencies such as the International Organisation
of Employers, the International Standards Organisation and the
Organisation for Economic Co-operation & Development. Through its
monitoring and lobbying activities, IH&RA actively resists potentially
damaging or costly attempts to regulate the hospitality industry
worldwide, estimated to comprise 300,000 hotels and 8 million restaurants,
employ 60 million people and contribute 950 billion USD annually to the
global economy.
The IH&RA Congress is a truly international hospitality event,
welcoming over 500 hospitality executives from around the world. The
profile of attendees includes chief executives from international and
national hotel and restaurant chains; chief executives from national
associations of hotels and restaurants; independent hoteliers and
restaurateurs; hospitality industry suppliers and service providers;
industry experts from leading international hospitality educational
centres; hospitality industry consultants; and chief executive officers
from international organisations.
The 2003 Congress will be held in Cairo, hosted by IH&RA members, the
Egyptian Hotel and Restaurant Association and the Egyptian Tourism
Federation.
Asian
Govts Offer Packages to SARS-hit Businesses
eTurbo.com
- Asian governments
are starting to respond to the cries of anguish from businesses decimated
by the deadly SARS outbreak with emergency packages to help the worst
affected sectors. Singapore announced relief measures worth 230 million
Singapore dollars (130 million US) on Thursday. The other most badly
affected economy in the region, Hong Kong, is expected to follow suit as
soon as this coming week and Taiwan has stepped in to offer support to
local airlines and tourism firms. The travel and tourism industries have
borne the brunt of the Severe Acute Respiratory Syndrome (SARS) outbreak
since it started in southern China's Guangdong province late last year and
spread to Hong Kong in February before being carried around the globe by
air travelers.
Governments, already
under severe budget pressure after regional economies were hammered by the
regional financial crisis five years ago and 2001's global slowdown, are
finding themselves again searching for band-aids for their bleeding
economies. Regional airlines, still recovering from the 2001 slump, have
been among the first to send out an SOS, saying up to 50 per cent of their
flights have been suspended. "Airports and air traffic management
services can and must reduce their charges, rents and other burdens which
they impose on the airlines regardless of the fluctuations of the
markets," said Richard Stirland, director-general of the Association
of Asia-Pacific Airlines (AAPA). Such steps were vital to the survival of
regional airlines, he added.
Singapore, which like
Hong Kong relies heavily on tourism and its role as a regional transport
hub, has cut its economic growth target to 0.5-2.5 per cent this year from
2.0-5.0 per cent due to the impact of SARS. Its assistance measures focus
on the devastated tourism industry, which suffered a 61 per cent plunge in
visitor arrivals in the first 13 days of April from a year earlier. Hotel
occupancy rates fell to 20-30 per cent from normal levels of at least 70
per cent. The package includes rebates for airport landing fees, a
reduction of the levy paid by employers for their foreign workers and
property tax relief for shops, hotels and restaurants. It will take effect
in May and last until the end of the year. "This is an immediate
response and now we will have to watch very carefully how the situation
develops and if there is a need to do more later and there is
justification to do more later, we are able to do so," Deputy Prime
Minister and Minister of Finance Lee Hsien Loong said.
In Hong Kong, the two
local airlines Cathay Pacific and Dragonair have cut flights by more than
40 per cent, hotels, restaurants and bars have emptied and retailers claim
sales have been cut in half since the last half of March. Analysts have
cut their economic growth forecasts for Hong Kong by around one percentage
point because of the SARS. Hong Kong Chief Executive Tung Chee-hwa said
this week the government will announce relief measures "very
soon" and there is speculation they will be released during the
coming week.
Zurich’s
‘Dolder’ to get Grand facelift
AFP -
With Einstein, Winston Churchill, Arturo Toscanini and Henry
Kissinger on its guest list, Zurich's century-old Dolder Grand Hotel used
to be one of the grandest hotels in Europe -- but that was some time ago.
New
Swiss owners have retained British star architect Norman Foster in a bid
to restore the Dolder to its former glory, at a cost they estimate at
140-160 million Swiss francs (93-106 million euros, 101-115 million
dollars)
"We
want the Dolder to rank among the world's top ten most beautiful
hotels," said Beat Sigg, executive director of Dolder AG.
Part
medieval fortress, part Renaissance chateau, the Dolder stands on a wooded
promontory overlooking Lake Zurich. A funicular connects it to central
Zurich.
The
hotel, built in 1899, has fallen on hard times and its sprawling public
rooms with chandeliers, tapestries and ornate panelling now stand almost
deserted.
Siff
said that only half the 180 rooms were occupied by guests last week.
"At
the moment the Dolder exsudes a whiff of the old-fashioned. We want to
restore it to its old splendor," said Stefan Behling, one of 12
architects from Foster's studio at work on the project.
Once
the plans get the go-ahead from Zurich city autorities, the hotel will
close for 18 months for the work to be done.
Foster
-- whose most famous projects include renovating the Berlin Reichstag and
the British Museum in London -- is planning to build a new majestic
entrance offering guests, as they arrive, a panoramic view of Zurich.
The
hotel's vast marble hall and ceremonial staircase will be restored, and a
spa -- the jet set's new requisite -- will be built to supplement the
Dolder's existing nine-hole golf course, large swimming pool and skating
rink.
InterContinental
Hotels & Resorts Offers the World at Half Off
/Business Wire/
- Travelers Can Now Indulge in Luxury at Locations They Have Only Dreamed
about Throughout Latin America and the Globe
InterContinental Hotels Group Latin America announced today the
re-launch of the "Whole World Half Off" promotion offering
prices as low as (US) $55 per room night, including a full-breakfast for
two. The program, which runs from April 14 until September 21, 2003, will
once again allow travelers from around the world to visit locations
throughout Latin America as well as around the globe, places that they
have dreamed of at prices too good to pass up.
During the "Whole World Half Off" promotion, travelers can
stay at some of the world's top hotels in more than 60 countries at
savings of 50 percent or more including breakfast. InterContinental Hotels
has more than 135 properties in capital cities and idyllic resorts around
the world - from Buenos Aires to London.
Guests
of InterContinental Hotels & Resorts can relax in a haven of
effortless efficiency where travelers' needs are met with services such as
handy currency packs of loose change to help pay tips on arrival in a new
country, shoulder massages to relax tension from long flights, and
insights to the hottest places in town from InterContinental Hotels'
Insider Concierge service.
Alvaro Diago, Area President, InterContinental Hotels Group Latin
America, said, "The 'Whole World Half Off' promotion proved to be a
tremendous success in Latin America last year so we decided to re-launch
the program once again this year. We are excited to be able to provide our
guests with another opportunity to enjoy great luxury at the best hotels
in Latin America for half price.
"Following the launch of our new service initiatives,
InterContinental Hotels & Resorts' offers a range of new value added
amenities designed to make a traveler's life easier. With 'The World Half
Off' guests can enjoy an even greater choice and greater luxury all at
half price."
The "Whole World Half Off" rates will also be available at
new InterContinental hotels opening this year, such as the
InterContinental Le Grand Hotel Paris. City slickers can book a stay at
the stylish hotel in the heart of this fashionable city, adjoining the
opera house, which has reopened after an intensive 18-month refurbishment
program.
"World Half Off" room rates (in US Dollars) for Central and
South America are:
Bogota...$55 Managua...$95 Santiago...$149
Buenos Aires...$109 Maracaibo...$95 Santo
Domingo... $99
Cali...$89 Medellin...$75 Sao
Paulo...$149
Caracas...$129 Panama...$135 Tegucigalpa...$135
Costa Rica...$145 Rio de
Janeiro...$110 Valencia...$109
Ciudad Guayana...$129 San Pedro Sula...$120
Guatemala City...$137 San Salvador...$103
From the many historic landmark hotels that are as much a part of a
city's glorious past, to the striking contemporary hotels that reflect
today's vibrant urban culture, InterContinental Hotel Chain offers
exceptional convenience and comfort for over 55 years in Latin America.
Representatives
from 22 Hilton properties from Munich to Mauritius to attend ATM
AME Info
- Hilton
International, the world's leading hotel brand, has confirmed an increased
level of participation from its global portfolio at the forthcoming
Arabian Travel Market 2003
A number of senior sales and marketing
representatives, as well as personnel from 22 properties worldwide, will
travel to Dubai especially for the event.
“This increased level of international participation is indicative of a
resurgence in consumer confidence in the travel sector both regionally and
worldwide. All our properties in the Middle East are taking part, as well
as hotels from Cyprus, Germany, Italy, Maldives, Mauritius, Munich,
Turkey, Thailand and UK,” said Rudi Jagersbacher, Vice President of
Operations, Hilton International.
Having long recognised the Middle East region as one of enormous
potential, Hilton now operates 31 regional properties, 14 of which are in
the Gulf. As one of the first international hotel chains to enter the UAE
market, many of Hilton's most established regional properties are located
in the UAE. Hilton Al Ain opened in 1972, the award-winning Hilton Abu
Dhabi followed in 1973, this year marking its 30th anniversary, while
Hilton Fujairah celebrates its 25th anniversary.
Exhibiting at ATM for the tenth consecutive year, Hilton will launch a new
brand product, an ambitious summer programme while also announcing a
number of regional and global marketing initiatives for 2003.
“ATM is of the utmost importance and will be utilised as a platform to
kick-start activities following an uncertain first quarter in the region.
As an international travel hub, Dubai is the perfect location for an
exhibition such as ATM, and our representatives really look forward to a
successful and productive visit,” continued Jagersbacher.
Hilton is one of the most established international hotel chains in the
Middle East, recognising the region's enormous tourism potential in the
early 1970's. Since then, Hilton has worked with the various tourism
departments to successfully implement a dynamic programme of growth and
development for the area.
Hilton's ongoing commitment to quality and service has earned the company
a number of high profile industry accolades this year. Receiving eleven
trophies at the recent Business Traveller Awards, Hilton won first place
in the Best Hotel Chain Worldwide, Europe and Middle East categories.
Regional honours continued as readers of Business Traveller Middle East
voted Hilton Abu Dhabi the Best Business hotel, and Middle East Travel
selected Hilton Jeddah as the Best Hotel - Jeddah. A testament to its food
and beverage outlets throughout the region, Hilton scooped a staggering 25
awards for culinary excellence in the first quarter of this year alone.
“Hilton's combination of in-depth regional knowledge and international
hospitality expertise sets the standard. Our market knowledge is second to
none and with a strong product offering and constant innovation, we intend
to maintain our position as the accommodation provider of choice for many
international and regional travellers to the region. Our future plans
reflect our confidence, and we greatly look forward to sharing this with
our travel industry partners at ATM,” said Guy Epsom, Regional Director
of Sales & Marketing, Arabian Peninsula, Hilton International.
The Hilton stand can be found in the Airport Expo-Dubai, West Hall, Stand
number 420.
China
cancels May holiday: shock in Beijing
TravelWeeklyEast.com -
Inbound China travel agents in Hong Kong were not
surprised by the decision over the weekend to cancel the week-long holiday
to help contain SARS, but agents on the mainland are left scrambling to
handle floods of cancellations.
Yang Wu, deputy general manager for China Youth Travel Service (CYTS)
handling inbound travel into Hong Kong, said May forecasts were already
very bleak.
“It’s very bad. We have no groups at all, and only occasionally
do we get hotel enquiries, perhaps one or two a day. The decision to
cancel the May holiday is not a surprise, because even if they [the
officials] did not cancel the holiday, people would not want to come.
“Who would bother to travel here now? I’m talking to our Beijing
office now about how we are going to handle this, because if we keep
waiting for two or three months, we will lose,” he said.
China Travel International (CIT) Deputy General Manager, Guo Yimei
said the decision to cancel the weeklong holiday has brought in a flood of
cancellations, and left agents wondering what to do next.
“What shall we do now? People are asking. We are facing
concellations after the Chinese Government declared that there will be no
seven-day holiday during the Labour Day. I have witnessed and work through
a number of bad conditions impacting tourism, but this is by far the most
miserable one,” she said.
Both China and Hong Kong travel trade operations will be hard-hit by
the decision, but Gao Qiang, executive vice-minister of health for China,
said at a press conference on Sunday that the Chinese Government is now
determined to place its people’s health first. “It is very necessary
to now take more stringent measures. We need to limit population flow
around the whole country, but local travel is encouraged.”
The vice-minister of health called upon all hotels, restaurants and
transport companies to disinfect their outlets or vehicles to help prevent
the spread of SARS. Yesterday, the CAAC started requiring all air
passengers to fill in health forms before boarding any domestic aircraft.
Last May, 1.3 million mainland Chinese travelled into Hong Kong for
the week-long May Day holiday, and approximately 87.1million travelled
domestically throughout China during the same period last year.
Careers
UAE 2003: Students ready to work in tourism, hospitality sector
Gulf News
- UAE national
students and graduates are today willing to work in the tourism and
hospitality industry, but face only one problem - acceptance by family.
These graduates are now trying to convince their
families that they are not going against social mores, and nor are they
violating traditions. The hospitality and tourism graduates argue that
this field provides them with a bright career and reflects the culture of
the country.
This is a marked change from earlier when
graduates were unwilling to take up the challenges of the tourism and
hospitality industry.
Eman
Jaffar Al Fardan, 16, a first year mass communication student at Dubai
Women's College, said she is prepared to take up a job in the tourism and
hospitality industry.
"I would love to work in the media but if I
am offered a job in a travel, tourism or hospitality company, I will
definitely take it. All jobs contribute to the growth of the
country," she stated.
She noted: "I would prefer to take up a job,
modest or otherwise, rather than remain unemployed. The problem certain
students face is their family denying them the right to choose their
career path in the hospitality industry because they feel it conflicts
with the UAE's traditions and lifestyle."
Hind Seif Al Shamsi, a first year graphic design
student, Dubai Women's College, said she is eager to take up a job in her
field of specialisation. "But if I am offered another job, I will
accept it provided that I can handle it and it adds to my experience and
further develops my career."
Hind
foresees the same problem of family acceptance if she opts for a career in
the tourism or hospitality industry.
"I will try hard to convince them," she
says with a smile.
Mona Al Braiki, a computer information processing
graduate, Dubai Women's College, said she is seeking a challenging job in
the management or marketing fields.
A senior customer service officer, Mona noted:
"Low salary is not the the reason why I am hunting for another job. I
would like to prove myself, develop my skills and further enhance my
career. I am keen to gain varied experience.
"I am prepared to take on a modest job if I
love the field, regardless of the salary. I prefer positions which lead to
top management and I do not mind long working hours."
Mona has no problem with taking
up a job in the tourism or hospitality industry. "I have received an
offer from a big hotel to work as an HR manager with an attractive salary
and benefit package, but my family refused. It is social mores again which
will take time to fade away.
"I tried hard to convince them but they
insisted that the hospitality industry is not suitable for our community.
These mores also prevent us from enjoying certain hobbies such as horse
riding or mountain climbing."
Laila Juma, who holds a diploma in Applied
Business from the Dubai Women's College, said she set no preconditions as
regards a job or salary.
"I am open to any offer. I had work
placements in the Economic Development Department, Dubai International
Airport and Al Wasl Hospital's Medical Records Section. It is not the
salary that makes me turn down a job.
"I have applied for a job at the Dubai World
Trade Centre and other departments as my family prefers my working in the
government or semi-government sectors. "I may accept Dh4,000 as a
starting salary but most of the companies and departments taking part in
the Careers Fair are only offering the graduates lip-service. Since last
June, I have submitted my CV to scores of companies and departments, but I
have not been invited for a single interview.
"National graduates are now prepared to take
on jobs with long working hours and they deal with the public in the
customer service sector far better than other nationalities. After all it
is the image of our country."
Hind Bu Faroosha, a foundation year student, Dubai
Women's College, said she would prefer to take on any computer-related
job.
She believes that working in the tourism and
hospitality industry does not suit UAE nationals. She expects a monthly
salary of Dh10,000 to Dh15,000.
Businesses
cut travel due to SARS
(CNN) -- Businesses continue
to ban travel to Asia because of the Severe Acute Respiratory Syndrome (SARS)
illness.
Sixty-one
percent are banning travel as of April 16, up from 58 percent last week,
according to a survey by the Business Travel Coalition. The group said
that, "at least for now, corporate travel policy changes have
stabilized" in terms of banning travel to Asia.
The biggest
increase in banned travel occurred between April 1, when 27 percent of
businesses were banning travel to Asia, and April 7, when 58 percent did
so.
Businesses
are instead relying on technology to connect with Asia. Forty-three
percent are using Web conferencing, 65 percent are using teleconferencing,
and 28 percent Web casting.
The
Business Travel Coalition said an increasing number of companies are
taking extra precautions with employees returning from Asia.
Twenty-four
percent are requiring workers returning from SARS-afflicted countries to
work from home for a period of time before rejoining the workforce, while
18 percent require them to obtain a medical bill of health before
returning to work.
And 39
percent of companies say airlines are being "only somewhat helpful;
not providing sufficient information" regarding SARS.
Starwood
Continues Its Expansion in China with Signing of Sheraton Jiuzhaigou
Hotel; Sheraton Jiuzhaigou Hotel Brings Starwood's Number of Properties in
China To 21
(BUSINESS WIRE)--April 22, 2003--Starwood Hotels & Resorts
Worldwide, Inc. (NYSE: HOT) and Sichuan Xinchengxin Industrial Co. Ltd.
announced an agreement appointing Starwood as the operator and manager of
the 492-room Sheraton Jiuzhaigou Hotel. This agreement places Starwood as
one of the largest international operators of upscale hotels and resorts
in China.
This five-star
property first opened in October 2000 as Jiuzhaigou International Hotel.
Starwood will assume official management of the resort on June 1. The
hotel will undergo a rebranding process so as to align it with the
international operating standards of Sheraton Hotels & Resorts.
Sheraton Jiuzhaigou Hotel will be the first international upscale resort
in Jiuzhaigou, a popular resort area, serving both leisure and incentive
travelers. The resort will boast six food and beverage outlets, 4,000
square feet as meeting space and extensive recreational facilities
including an indoor pool and a theater seating 500 people.
Jiuzhaigou is situated
in Sichuan Province located in southwest China. This resort destination is
currently accessible from Chengdu, the capital of Sichuan Province. The
Jiuzhaigou International Airport is scheduled to open in September 2003
which will allow direct flights from key gateway cities in China such as
Shanghai, Beijing and Guangzhou.
"We are very
pleased with the signing of the Sheraton Juizhaigou Hotel, another
testimony of Starwood's commitment to the rapidly growing inbound and
intra-regional business in China. We are delighted to be in partnership
with Sichuan Xinchengxin Industrial Co. Ltd. and are proud to manage this
stunning resort," said Miguel Ko, President of Starwood Hotels &
Resorts, Asia-Pacific. "Sheraton Jiuzhaigou Hotel will be Starwood's
second resort in mainland China and will be a fine addition to our
collection of Sheraton, Westin, St. Regis and Four Points by Sheraton
properties in China." added Ko.
Jiuzhaigou, a state
nature reserve, was part of the first batch of scenic areas that came
under special state protection in 1982. It was voted the best new scenic
area of China in 1990 and was admitted into the UNESCO "World
Heritage List" in 1992. As a nature reserve, Jiuzhaigou is rich in
the natural elements, from lakes, waterfalls and mountains to animals,
vegetation and plants. The natural elements, coupled with the area's
unique inhabitants from the Tibetan & Qiang tribes, have transformed
Juizhaigou into a secluded natural haven.
Starwood
Hotels & Resorts Worldwide, Inc. is one of the leading hotel and
leisure companies in the world with more than 750 properties in more than
80 countries and 105,000 employees at its owned and managed properties.
With internationally renowned brands, Starwood is a fully integrated
owner, operator and franchisor of hotels and resorts including: St. Regis,
The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W
brands, as well as Starwood Vacation Ownership, Inc., one of the premier
developers and operators of high quality vacation interval ownership
resorts. For more information, please visit www.starwood.com
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