(Reuters) - French hotel group Accor reported a 6.5 percent decline in first-quarter sales on Tuesday, hurt by currency effects in the Americas and the sale of a large chunk of its casino business at home.

The sales figure was in line with analysts' forecasts.

In a conference call with reporters, the company declined to give forecasts for 2003, nor indications of its performance four months into the first half.

Europe's biggest hotelier, which includes the upscale Sofitel hotel and U.S. budget chains Red Roof and Motel 6, said first-quarter sales fell to 1.558 billion euros ($1.77 billion) from 1.667 billion euros last year. Sales rose one percent like-for-like -- currencies wiped 8.3 points off growth.

Analysts had predicted sales in a range between 1.519 billion and 1.574 billion euros.

Accor's second-in-command, Benjamin Cohen, declined to give indications of group performance since March, saying only that the second quarter would be marked by "the same characteristics" as the first, but would include some calendar effects and the take-off of the SARS epidemic in Asia.

While Accor's hotels in Asia account for some 30-40 percent of the group's hotel division turnover, Cohen estimated the SARS impact on sales at only 500,000 to 600,000 euros since most of its establishments in Asia are under external management.

As for its U.S. hotels near the Canadian border, Cohen said the impact there had been "minimal" -- Canada has also been hit by the SARS epidemic.

However, he estimated that the war in Iraq had cost the group 0.5 percentage points in first-quarter turnover.

"Instead of one percent growth at constant structures and exchange rates, we would have had 1.5 percent," he said.

Overall, revenue per available room, a key industry indicator, dropped more than two percent in Accor's three hotel divisions -- down 2.1 percent in both European business and leisure and European Economy hotels, and down 2.4 percent in dollar terms in its U.S. budget branch.

Sales in Accor's "other businesses" fell 15.1 percent to 343 million euros after it sold a 50 percent stake in Accor Casinos.

In its giant hotel division, turnover dropped 2.9 percent to 1.104 billion euros, though like-for-like it rose 0.2 percent.

Accor pinned a 12.3 percent decline to 111 million euros in its smaller services branch on devaluations in Latin America.

Shares in the company ended 0.52 percent higher at 30.7 euros, taking their rise since January to 6.4 percent and outpacing the Dow Jones Stoxx European cyclical goods index .SX2P by nearly nine percent.

(Reuters) - Standard & Poor's on Tuesday cut its debt rating on Sheraton-owner Starwood Hotels & Resorts Worldwide Inc. to junk, citing a weak economy and challenging environment for the lodging industry.

The reduction from an investment-grade rating of White Plains, New York-based Starwood, one of the top three U.S. hoteliers and also owner of Westin and W brands, comes after it and other lodging companies forecast a 2003 contraction in room revenue, the key barometer of industry health.

Fears of the SARS illness has added to concerns raised by the U.S. war in Iraq and general economic malaise.

Starwood plans to cut its $5.5 billion debt by $1.1 billion through asset sales this year.

But S&P said Starwood's credit would not improve enough to justify the investment-grade rating, given the outside factors which helped push the company to a loss in the first quarter.

S&P cut its corporate credit rating on Starwood by one notch to "BB-plus," its highest junk grade, from "BBB-minus."

Ratings downgrades usually increase borrowing costs.

Shares of the company nevertheless rose 3.8 percent, or $1.04, to $28.10 in late trade on the New York Stock Exchange, slightly outpacing rival hoteliers.

Investors have treated lodging industry stocks as one way to bet on the likelihood of a broad U.S. economic recovery, since as corporations' profit rises, they will send executives on the road, which will especially benefit hotel owners.

So far this year, hotel companies have reduced outlooks, and S&P said it did not expect the lodging industry to grow quickly again before 2004.

Starwood is moving forward with plans to sell assets and trim debt, those efforts are being offset by a worse-than-expected operating environment and only a "modest improvement" is expected this year, S&P said.

Analyst Craig Parmelee told Reuters the company probably would not get a credit upgrade by the end of 2003 or 2004, even though it stood to improve profits relatively quickly during an upturn.

Starwood owns a large portfolio of hotels, in contrast to rival Marriott International Inc.MAR.N and Hilton Hotels HLT.N , which chiefly manage operations.

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

TravelCLICK's eMonitor results for the first quarter of 2003 show that worldwide hotel room nights booked electronically through the Global Distribution Systems (GDSs) and key Internet sites increased 4.6% versus the same period last year. 

Revenue for the first quarter of 2003 was up 3.6%, and average rate declined 0.9%. "The growth in room nights was largely driven by room nights booked by consumers over Internet sites," said Bruce W. Mainzer, senior vice president of marketing for TravelCLICK. 

eMonitor results are compiled from TravelCLICK's comprehensive database, which is the exclusive source of hotel industry electronic distribution data from the Amadeus, Galileo, Sabre, and Worldspan GDSs. Effective with this first quarter report, TravelCLICK’s eMonitor now also includes hotel bookings made through third party travel Internet Web sites powered by Pegasus Solutions.

Travel Agent Component

Travel agent bookings remained the dominant source of GDS and Pegasus hotel e-business, representing 76% of total room nights. The travel agent component of GDS bookings had a 1.8% increase in ADR versus the first quarter of 2002. The average rate for room nights booked through travel agents is 70% higher than the average rate for room nights booked via the Internet. 

Internet Component

Internet (consumer online) room nights displayed growth of 25.3% above the first quarter of 2002. However, average rate was down for GDS powered Internet bookings by 5.0% compared to the first quarter of last year. The ADR of Internet bookings through the GDSs was $73.72. Starting with this first quarter report, eMonitor results are compiled from a larger database that includes Internet bookings made through both GDS and Pegasus powered travel Web sites. The high proportion of wholesale or net rate transactions made through auction or opaque Web sites, such as Priceline and Hotwire, therefore strongly influence these results. 
 

"With the addition of the Pegasus data to our GDS information, we are seeing a different trend in electronic bookings made by travel agents versus consumer online transactions made on third party Web sites," said Mainzer. "While the growth of Internet hotel room nights has been impressive, the difference in average rates for Internet versus travel agent bookings is startling." 

GDS Performance by Market Segment

Results for the first quarter of 2003 by industry market segment are shown below for GDS bookings only. The luxury category outperformed all the other categories in both room night and ADR growth. 

GDS Performance by Market Segment - 
First Quarter, 2003

Top Destination Markets

The top five worldwide destination markets for total GDS and Pegasus third party powered Web room nights during the first quarter of 2003 were: 
 

To receive a free listing of first quarter results by top 50 cities worldwide in electronic bookings, please e-mail emonitor@travelclick.net.

About TravelCLICK

TravelCLICK (www.travelclick.net) is the leading provider of solutions that help hotels and other travel industry suppliers maximize net revenue from electronic distribution channels. TravelCLICK's competitive benchmarking reports provide hotels with price and booking performance information unavailable through any other source. The company's exclusive electronic marketing networks allow hotels and other travel related suppliers to target promotional messages to specific travel agents, consumers, and group meeting planners when they are booking travel. The TravelCLICK Interactive division assists hotels with online strategies to increase consumer direct business.

Established in 1996 and headquartered in the Chicago area, TravelCLICK operates in more than 140 countries around the world. The company has over 6,000 clients, including national and international companies such as Accor, Air France, Avis, Best Western International, British Airways, Carlson Hotels Worldwide, Choice Hotels, Fairmont Hotels & Resorts, Four Seasons Hotels & Resorts, Grupo Posadas, Hilton Hotels Corporation, Hyatt Hotels & Resorts, Kempinski Hotels & Resorts, Leading Hotels of the World, Loews Hotels, Lufthansa, Marriott International, The Peninsula Group, The Ritz-Carlton Hotel Company, SAS, The Savoy Group, Shangri-La Hotels, Sol Melia, Starwood Hotels & Resorts, Thistle Hotels, USAirways, Virgin Atlantic and Wyndham Hotels & Resorts.

InterContinental Hotels Group Awarded Two New Management Contracts in the Philippines

First Crowne Plaza Hotel to be Opened in Prime Location in Manila

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

These two new developments add to InterContinental Hotels Group's portfolio in Asia Pacific, which includes 144 hotel properties with close to 40,000 Guest rooms in 22 countries in the region.

Lance Gokongwei, President and Chief Operating Officer, Robinsons Land Corporation, said, "Exciting times are ahead for RLC - the rebranding of Manila Galleria Suites to Holiday Inn will take place on 1 June 2003 and the Crowne Plaza property will be launched in early 2005 when construction is completed. We are confident that our partnership with IHG is a positive move that will contribute to building value for our properties, our shareholders and the Philippine tourism industry. Through our agreement with IHG, we now carry two of the most recognised brands in the world and have access to IHG's industry expertise, its state-of-the-art reservations system Holidex Plus, and the group's 15 million Priority Club Rewards members".

"InterContinental Hotels Group is on the move in Asia Pacific".

With the best brands for both business and leisure travellers in some of the

Most sought after locations in the region, the Holiday Inn and Crowne Plaza properties in Manila will complement our existing properties including the InterContinental Manila and Holiday Inn Resort Clark Field, and boost our presence in the Philippines," said A. Patrick Imbardelli Managing Director of InterContinental Hotels Group, Asia Pacific.

"Together with the strength of our Holiday Inn and Crowne Plaza brands, our partnership with Robinsons Land Corporation will enable us to leverage our people, infrastructure and knowledge to attract lifelong customers, enhancing revenues and returns for the properties," added Mr. Imbardelli.

Through the management contract, the 284-room Manila Galleria Suites will be rebranded to a Holiday Inn Galleria Manila in advance of a 12-month refurbishment programme. The project will include the installation of facilities required by the corporate market including high-speed Internet access, conducive work spaces and recreational facilities.

As the place to meet, the new 260-room Crowne Plaza Hotel, will boast extensive meeting facilities, as well as new service initiatives to cater to the small and mid-sized meetings market. The new Crowne Plaza Hotel is under construction at a prime location at the corner of Ortigas and Asian Development Bank (ADB) Avenue.

Hilton Intl Bangkok: Management change ‘on the cards’

Conrad's opening behind owner's likely move: source

The Nation  -  After nearly 20 years, the Hilton International Bangkok at Nai Lert Park may change management firms, according to a source at the hotel.

The source said hotel owner Thanpooying Lersak Sombatsiri might terminate the long-term relationship with the Hilton international hotel chain when the existing contract expires at the end of this year.

The source said the opening of the new Hilton-affiliated Conrad Hotel on Wireless Road had prompted the owner to consider the change. The Conrad Hotel is now the major competitor for the Hilton International Bangkok.

Kunjarika Kunjara, director of public relations at the hotel, said Hilton and the hotel owner would meet next month for final negotiations.

"Everything will be clearer soon", she said.

The Bangkok hotel industry is undergoing a shake-up.

Recently, InterContinental Hotels Group announced it would make a comeback to the city by taking over the management of the Le Royal Meridien Bangkok and Le Meridien President hotels. The hotels are owned by the Srivikorn and Charoen-Rajapark families.

Intercontinental Hotels Group will take over the management of the two properties in July.

The new relationship with InterContinental will see the luxury 381-room Le Royal Meridien Bangkok change its name to InterContinental Bangkok.

The 377-room Le Meridien President Bangkok, which will undergo a US$13-million (Bt555 million) renovation, will become the Holiday Inn Bangkok in early 2005.

Singapore-based HPL Hotels & Resorts has taken over the YMCA Bangkok on Sathorn Road and will launch it as the boutique Bangkok Metropolitan Hotel, to be managed by Como Hotels & Resorts.

A new luxury hotel will also open as part of the Siam Paragon project

Intelligent Spas Announces Spa Industry Survey Results for Thailand

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

Thailand Spa Industry Results

·       Spa visits had increased by 64% over the last three years.

·       Approximately 3.3 million people visited Thai spas during 2001/2002, 80% of which were international tourists.

·       59% of spa visitors were female, 41% male.

·       The majority of spas were located in a hotel or resort.

·       Spas had eight private treatment rooms on average.

·       Hotel spas had seven couples rooms compared to resort spas that had four on average.

·       Employees were typically hired on a full time basis.

·       On average, half of spa revenue was generated by massage services.

·       The majority of spas forecasted an increase in revenue during the 2002/2003 period.

Intelligent Spas (www.intelligentspas.com), an independent research company specialising in the spa industry, is currently rolling out the Spa Industry Survey Program in major spa markets across the Asia Pacific region. It is the most comprehensive and consistent, multi-national spa survey ever conducted, and is critical to providing necessary statistics and information as the industry is generally experiencing rapid expansion.

Julie Garrow (julie@intelligentspas.com), Founding Director of Intelligent Spas stated “the Thai spa industry primarily consists of hotel and resort spas. The findings provide spa facilities with valuable industry statistics to analyse their competitive environment and maximize their performance. The study also covers plans for consulting projects, facility profiles, level of technology and financial performance - critical information other organisations can use to better service and support the spa industry.”

Naphalai Areesorn, President of the Thai Spa Association, said the survey will be of great benefit to the Thai spa industry. “This is the first survey that has been done on the local spa industry and will help to provide some facts and figures. The Association is often asked about the size of the industry, the revenues generated, the number of staff involved, etc. - all important information for those interested in the industry - and we are never able to give an accurate answer. This report will change all that and we hope the survey will be carried out on an annual basis.”

Intelligent Spas, together with the Thai Spa Association, would like to sincerely thank the participants of the Spa Industry Survey Program for their time and effort in completing the survey. Each participant received a copy of the Spa Benchmark Report, which also incorporated analytical tables and graphs to compare their individual performances against the industry averages.

The Thailand Spa Industry Survey Report is available for purchase online at www.intelligentspas.com. For further information contact Julie Garrow via email julie@intelligentspas.com, telephone +65 6248 4736 or facsimile +65 6248 4531.

About the Spa Industry Survey Program

The Spa Industry Survey Program was specifically designed by Intelligent Spas to capture much needed statistics to assist spas and other members of the spa industry, benchmark performance and make informed business decisions. The in-depth, self-fill survey captured valuable information relating to spa type, treatments and services, infrastructure and equipment, technology, ownership and management, positioning and marketing, visitation and client profiles, human resources, advisors, training and education, financial analysis and forecasts, and trends and current issues.

Over 100 questions were asked of the spas covering both quantitative and qualitative statistics. Quantitative data was collected for the fiscal year July 2001 to June 2002 as well as more historical data for 1999/2000 and 2000/2001, so that trends relating to revenue, employee numbers and spa visits could be established. The spas were also asked to predict their performance in 2002/2003 so forward looking trends could be benchmarked. Qualitative data captured related to topics such as productive marketing activities, training needs, industry trends and major challenges. Approximately fifteen percent of the questions were related to key financial statistics, including total revenue, average spend per visit and development costs.

As Intelligent Spas is a completely independent research company, that is, it does not consult to individual businesses, the spas could feel comfortable in sharing their data as confidentiality was assured. The survey was also professionally designed using appropriate data ranges for the most sensitive data, such as revenue and salary levels by job type, which also made the completion of the surveys easier.

The Program has been successfully implemented in Australia, Singapore and Thailand. Other country surveys across the region are currently underway and will be available shortly

Hong Kong’s ITE postponed to September

The International Travel Expo (ITE), originally schedule for June 12 – 15 in Hong Kong, has now been postponed to late September.

Organisers of the annual four-day travel fair, Adsale Exhibitions Services Ltd., surveyed ITE participants on whether to postpone the event to September or October.

A spokesperson for Adsale told TravelWeekly today that 70 percent of those surveyed preferred September and a firm date was to be be set by the end of today.

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

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

As ground is broken at the first hotel complex on the Dubai Marina, to be named Grosvenor House Hotel and Hotel Apartments, West Marina Beach Resort, by Le Meridien, the word on the streets of Dubai is that new records of product and service excellence in the hospitality sector are set to be smashed too.

According to Pam Wilby, known locally as a ‘connoisseur of Royal Living’ and the general manager entrusted to turn vision to reality, the grand-deluxe Grosvenor House is set to be the exclusive address in the upcoming Dubai Marina – echoing the global standing of its London-based namesake.

Like this new neighbourhood, earmarked to house more than 10,000 people within a couple of years, Wilby says the hotel complex will fast become the ‘place to be’ when it opens in late 2004. “I make no bones when I say that Grosvenor House, Dubai will create new dimensions in the industry, not just because of its stunning interiors but also in the quality and style of service,” she said.

Wilby is also at the helm of the nearby Le Royal Méridien Beach Resort & Spa. This property already has an envious track record of repeat guests under the guise of  ‘Royal Ambassadors’, a denomination that Wilby and her team bestow on frequent guests, many of whom carry resort business cards to that effect. She explains: “Our Ambassadors ‘sell’ our hotel, not because they have to, but because they want to.”

While success reigns on the beach, she explained the essence and individuality of Grosvenor House, Dubai. “From the foundations up, the stunning hotel will be custom-designed to reflect the essence of Arabia fused with the very latest in technology, design and luxury.

“But just as the property design and construction will set new benchmarks, so will the staff’s commitment to service at every level.

“In fact, I can see the project’s many contemporary signature elements – both through bricks and mortar and in staff attitude - creating new buzz-words in the global hospitality industry,” she promises, starting with the self-assumed grand-deluxe positioning.

“The established five-star certification will not do justice to this project, so from the outset, Sheikh Ahmed has set our objectives to break barriers. The grand-deluxe denomination fits our vision perfectly,” assures Wilby.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates Airline and President of Dubai Civil Aviation is the man behind the pioneering, multi-use, 45-storey complex, named Grosvenor House, Dubai, after the legendary landmark Le Meridien Grosvenor House in Park Lane, one of London’s most famous locations.

 “It is fitting that Sheikh Ahmed is behind the first hotel on the Marina,” said Ali Al Mubarak Al Soori, head of the Chairman’s Office and Facilities Management at Emirates Airline and the owner’s representative of the Grosvenor House project.

“His Highness was one of the first to appreciate the potential of tourism as a growth engine for Dubai, initiating the construction of the first new beach hotel for more than a decade with Le Royal Méridien Beach Resort & Spa some nine years ago.”

He agrees with Wilby and maintains that Grosvenor House, Dubai will stand among the most exclusive hotels around the world in terms of product and service offering. He explained: “Grosvenor House, Dubai will be second-to-none, reflecting a position of sheer luxury and exclusivity in the hospitality sector.”

Wilby confirmed that the interiors of the hotel and apartments will be ultra-luxurious, distinguished by superb décor and outstanding amenities beyond the expected. The renowned interior design consultancy firm, the Dubai-based LW Design Group, has been appointed for the project.

She continued: “What we are looking towards is establishing a whole new meaning to the words elegance and service, and, I don’t mean lip-service – we are a team with a vision and we will deliver.

“This will be visible in the grandeur of the interior décor but my ultimate aim is to ensure that the essence of the ‘guest experience’ will be present across the board.”

Wilby say that aside from the tasteful design, this will be achieved by a service brigade who truly enjoys the very core of the hospitality industry. “It should be in our blood as hoteliers to quite simply, make people happy by excellence in delivery.”

But seeing is believing, and on fixtures, fittings and facilities, the architect and interior plans of the Grosvenor House, Dubai project look equipped to make a mark on a city that will have in excess of 37 five-star hotels – and one assumed seven-star landmark property - by the time doors open for business.

Grosvenor House, Dubai will have 218 rooms and suites in the luxurious, self-contained hotel tower, as well as 206, one-, two- and three-bedroom butler-serviced apartments, All of the grand-deluxe accommodation, whether for hotel guests or apartment residents, will have sweeping views of the skyline, marina and the Arabian Gulf.

The interior design team has absorbed Sheikh Ahmed’s vision by painting a modern, contemporary yet comfortable picture of ‘tomorrow’s’ hotel lifestyle.

While furnishings look set to follow clean lines, a vibrant, autumnal colour palette and textured materials give depth and substance that speaks volumes in art form, thus assumed as able to maintain an audience when complete.

On lifestyle, as crucial to Dubai residents and visitors as it is to any city of vibrancy and success, Grosvenor House, Dubai will comprise a mixed portfolio of fashionable restaurants and bars – designed to turn the Dubai restaurant scene on its head.

Wilby declined to expand on details of the restaurants – “we have to retain an element of surprise in a competitive marketplace,” she explained - but confirmed they will all be new concepts ranging from hip to lively to formal dining.

She did state that the project team has also focused on creating innovative personal grooming, health and spa facilities exclusive to Grosvenor House residents.

“We have been fast to recognise that personal grooming, from top to toe and in between, is as important to today’s lifestyle to a MBA. So, we are aiming to ensure a seamless lifestyle service, from valet parking to suit pressing to great restaurants, a tip-top manicure and more,” said Wilby.

“This means that the Grosvenor House, Dubai leisure and beauty facilities will be as upbeat, modern and efficient in service delivery as our restaurants and bars.”

Turning to event and business facilities at Grosvenor House, Dubai, there will be a dedicated conference center, which like both the hotel and apartments, will have a separate entrance.

It will feature cutting-edge technology, with a huge multi-use ballroom, boardrooms, syndicate break-out rooms and a service-driven, quality-aware business support centre.

While it is unlikely that we have heard the last from Wilby on Dubai’s latest hospitality landmark, she concludes now by saying: “This project is considered a ground-breaker on the marina development – as well as in Dubai’s burgeoning hospitality sector.

“Frankly, the project is set to stand its own among some of the world’s most acclaimed hotels.”

Chilean tourism industry recovering.

Merco Press  -   After two successive negative summer seasons the number of tourists visiting Chile during the first quarter of 2003 increased 2,7% over the same period in 2002 according to the latest release from the Chilean National Tourism Service. The increase represented a 5% expansion in income equivalent to 20 million US dollars.

“We can confirm that the foreign tourists falling tendency has reverted”, said Mr. Oscar Santelices head of the Tourist Office adding that this has been achieved by “diversification, attracting tourists from other countries diminishing our dependency from Argentina”.

The Argentine crisis had a direct impact in the Chilean industry when the number of tourists from that country dropped 20% in 2002 and 30% in 2001.

Faced with the situation Chilean authorities launched an aggressive international campaign to attract tourism and in the first quarter of 2003, the number of tourists from Europe, (Germany, Spain, France, Britain, Switzerland, Sweden and Holland) jumped 37,6%, plus the fact that Europeans spend an average daily of 80/100 US dollars compared to the 20 US dollars of the Argentines.

“We are now less mono dependent from Argentina, and our overseas campaign will continue, emphasizing on the natural contrasts of our 4,000 kilometers long territory with desert, sea, mountains, Patagonia, Antarctica”, stressed Mr. Santelices.

Tourists from Asia increased 17,3%; from Nafta countries (US, Canada and Mexico) 9% and from Oceania 88%.

However the number of Chileans travelling overseas jumped 35%, attracted mainly by the weak currencies of Argentina, Brazil and Uruguay

Corinthia Grand Hotel Royal Budapest declared “officially open”

The five-star deluxe Corinthia Grand Hotel Royal, a landmark redevelopment of a historic 19^TH century hotel in the heart of Budapest, Hungary, was today declared 'officially open', in the presence of the President of Hungary Ferenc Madl and the President of Malta Guido De Marco. The hotel joins a list of prestigious properties operated by Corinthia Hotels International in eleven destinations.

Corinthia Group Chairman Alfred Pisani welcomed guests to an evening of classical music by the Hungarian Liszt Ferenc Chamber Orchestra. This was followed by a Gala Dinner in the hotel's meticulously restored Grand Ballroom.

Within Hungary, the re-opening of the Grand Hotel Royal has been hailed as a major milestone in Budapest’s continued revival. The Hotel enjoys a special place in the heart of most Hungarians, having been a focal element in the cultural and social life of Budapest since its first opening in 1896.

Corinthia Hotels International acquired the Grand Hotel Royal in 2000 and immediately set about rebuilding the erstwhile derelict and abandoned hotel. Work entailed the total redevelopment of the historic Hotel, retaining prominent features such as the listed façade and the imposing turn-of-the-century Grand Ballroom.

The Ballroom is now an exclusive event hall for up to 400 guests and the focal point of the largest and most modern conference centre in the city, with 30 additional meeting rooms including the adjoining state-of-the-art Exhibition Centre. The 3,600 square metre Conference area can accommodate up to 2200 guests and represents two-thirds of the entire conference space available in the City's five-star hotels.

The hotel has 414 executive bedrooms and suites, an array of dining services including the casual Brasserie and the elegant Rickshaw, the Bistro, Le Bar, and the famed Royal Coffee House, a 300-car multi-storey car park, 28 penthouse apartments and a casino nightclub.

Due to re-open by late Summer, a fully equipped wellness centre, located beneath the hotel, will feature a pool area meticulously renovated to its original style, reminiscent of the famed Royal Spa of the 19th century.

Despite SARS, Hotel Companies Still Intend to Expand in China

LA Times   -  Three hotel giants, including InterContinental Hotels Group, said their plans to expand in China would continue despite the damage done by the disease known as severe acute respiratory syndrome, or SARS.

China has confirmed 190 deaths resulting from SARS and 4,000 cases of infection, which have scared off tourists and left 2 out of 3 hotel rooms empty.

The virus has forced authorities to close schools, hospitals and the stock markets. The World Health Organization warned against travel to the country. And that has taken a toll on tourism.

Recently, the Ritz-Carlton in Shanghai said it had 32% occupancy last month compared with the usual 82% for April. Still, Intercontinental, Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc. announced that they were expanding despite SARS, betting that China's 2001 entry into the World Trade Organization and the 2008 Olympic Games will boost arrivals.

"The underlying situation of China being a strong-growth economy isn't changing; people will go back at some point," said Pieter van Putten, chief executive of Morley Fund Management Singapore, which holds $3 billion in Asia.

Since 1997, the number of five-star hotels in China has risen to 282 from 57, and four-star hotels have doubled to 386, the China National Tourism Administration said.

InterContinental, which has about 40 Holiday Inn, Crowne Plaza and InterContinental hotels in China and Hong Kong, said it's on track to double the number of properties there over the next three to four years.

Among them are 14 contracts under which InterContinental, the world's No. 2 hotelier by rooms, would manage hotels under its three key brands, it said.

"Whether one's delayed by a month or two months because of the current issue, that could happen," said A. Patrick Imbardelli, InterContinental's managing director for Asia Pacific, who is based in Singapore. "But we believe we're still pretty strong and realistic."

Shangri-La, Asia's largest manager of luxury hotels, has 16 of its 38 properties in China. It has clinched six management contracts in China and is spending $330 million through 2006 to build four hotels in Shanghai and other cities.

Singapore-based Ascott Group Ltd., Asia's biggest serviced apartment operator in China with six properties, may look for more opportunities in the country. The firm has said it may introduce a mid-market brand to add to its properties. A night's stay at one of its Shanghai apartments costs $150.

"We're monitoring the situation for short-term impact, but the long-term outlook for China and its appeal as a destination for investments are still there," said Benett Theseira, Ascott's chief corporate and investment officer.

Though visitors may return when the outbreak is contained, China's handling of the situation has not helped. The government delayed until March telling the World Health Organization about the contagious disease, which first appeared in the country in November.

China lags behind in efforts to contain the illness, investors said, even as WHO said SARS cases in Singapore and Hong Kong had probably peaked and it lifted an advisory against nonessential travel to Toronto.

"If the authorities in China are able to improve how they cope with the current situation, its growth should not be hindered," said Stephanie Lee of Aberdeen Asset Management Asia in Singapore. "The SARS impact could well be a short-term epidemic, and hotel builders tend to have a longer-term view."

ACCOR launches consumer-friendly and price-transparent website

Travellers have access to best on-line rates over 60 day period Australia's largest hotel group, Accor, has launched the hotel industry's most user-friendly web-site - www.accorhotels.com.au - which gives travellers access to the best on-line Hot Deal rates available over a 60 day period at some 100 hotels in Australia and New Zealand.

Each hotel lists the on-line rate for each and every day (unless sold out) over the two month period. The rates vary according to demand on that specific day or in that specific hotel, but the transparency will allow travellers to organise their hotel stays when best rates are available.

Travellers will be able to compare on-line rates at a range of Sofitel, Novotel, Mercure, All Seasons and Ibis hotels in each destination and select their accommodation accordingly. For instance, in Sydney, travellers can select on-line rates from over 20 hotels, in Melbourne 12 hotels and in Cairns six hotels.

Through the site, travellers can also access best online deals at the rest of the Accor global network, which totals over 3,800 hotels in 90 countries.

Accor offers a complete range of hotel styles from 5-star to economy, city, suburban and regional, as well as resorts and outback hotels. 

Commenting on the launch of the new website, Accor Asia Pacific's Senior Vice President Sales & Marketing, Ray Stone, said that the greatest benefit of the new site was its complete transparency.

"Travellers are now far more sophisticated in terms of on-line bookings and this site has been developed after feedback from those who already book Accor hotels via the net," Stone said.

"What they want is to be able to see rates over a range of days with a wide selection of choices - and that's what we now provide.

"It is ideal for a traveller who might be thinking of going away for a short-break, but who wants to ensure they get the best possible price. Clearly if you want to go to Melbourne during Melbourne Cup rates are going to be more expensive, which they will be able to see. However, they will also see that either two weeks before or after that, rates are considerably lower and they therefore can organise their travel plans to suit.

"As all the airlines have discovered, domestic travellers increasingly want to book on-line and while the majority of our business still comes through travel agencies and other traditional distribution channels, for the growing number of on-line travellers this new web site provides the most sophisticated, transparent and user-friendly hotel booking site in Australia.

"The timing of its launch couldn't be more appropriate as Australians are now increasingly looking to holidaying domestically or in New Zealand, and this will make booking local holidays that much easier."

According to net research and ratings company, Red Sheriff, the earlier model of accorhotels.com.au was attracting over 125,000 unique visitors to the site per month - the most visited website of any hotel company in Australia.

Accor is the worldwide leader in hotels, tourism and corporate services, employing 150,000 people in 140 countries, with two major international activities:

*  hotels: 3,833 hotels (441,203 rooms) in 90 countries (including over 100 hotels and resorts in Australia and New Zealand under the brands Sofitel, Novotel, Mercure, All Seasons, Ibis and Formule 1) as well as travel agencies, restaurants and casinos;

*  services to corporate clients and public institutions: each day, 13 million people in 32 countries use a broad range of services (employee assistance programs, people care and services, incentive, loyalty programs, events, food vouchers) engineered and managed by Accor.