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Newsletter -August 2, 2002
Prime
Hospitality Corp. Reports Second Quarter Results
/PRNewswire-FirstCall/
-- Prime Hospitality Corp. (NYSE:PDQ), a leading hotel owner, operator and
franchisor, reported its results for the second quarter and six months ended
June 30, 2002.
Net income before asset transactions and other charges for the second quarter
was $6.1 million, or $.13 per share, compared to $11.7 million, or $.26 per
share, for the second quarter of 2001.
Income before extraordinary items was $3.4 million, or $.07 per share, for the
second quarter of 2002. Non-recurring items in the second quarter of 2002 were
comprised primarily of a $4.5 million pre-tax litigation charge. For the
second quarter of 2001, income before extraordinary items was $20.7 million,
or $.45 per share. Non-recurring items in the second quarter of 2001 consisted
primarily of the recognition of deferred gains on the termination of four
leases.
For the second quarter of 2002, Prime also reported an extraordinary loss of
$7.9 million, net of tax, related to the premium associated with the
retirement of the Company's $200 million 9-3/4% Senior Subordinated Notes.
Our results continue to be affected by the softness in business transient
demand, said A.F. Petrocelli, Chairman and CEO of Prime. Despite this
difficult environment, our cost control programs were effective at both the
property and corporate level.
During the quarter, we continued to grow our brand infrastructure. Our new
rewards program has contributed a 50% increase in revenues from frequent
guests over last year. We also began development of our own proprietary
reservation system, which is scheduled to open in the fourth quarter of 2002.
The new reservation center should enable us to improve service levels and
provide us with enhanced customer data.
We have also made considerable improvements in our capital structure. In
April, we refinanced our Senior Subordinated Notes with a new $200 million
issue priced at 8-3/8%. In July, we closed on a new $125 million revolving
credit facility, which will fund the redemption of our 9-1/4% First Mortgage
Notes. These new issues will result in significant interest savings and
provide us with the financial flexibility to grow our company.
For the six months ended June 30, 2002, net income before asset transactions
and other charges was $6.5 million, or $.14 per share compared to $21.3
million, or $.46 per share, for the first half of 2001. Income before
extraordinary items was $4.2 million, or $.09 per share, for the first six
months of 2002.
Operating Results
For the quarter, total revenues decreased by $23.2 million to $111.0 million
due to lower revenues at comparable hotels and the impact of asset
divestitures. Revenue per available room (REVPAR) at Prime's comparable owned
and leased hotels decreased by 10.5% as compared to the second quarter of
2001. The decrease was driven by both lower average daily rate (ADR) and
occupancy. For the quarter, ADR decreased by 5.8% to $73.50 and occupancy
decreased by 3.4 percentage points to 64.5%. Gross operating profit margins at
comparable owned and leased hotels declined by 2.9 percentage points due to
the lower revenues partially offset by the impact of cost containment
programs.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
decreased by $9.3 million to $27.1 million in the second quarter of 2002.
EBITDA margins declined by 2.7 percentage points primarily due to the lower
gross profit margins at the owned and leased hotels.
Interest expense declined by 9.4%, or $800,000, to $7.6 million for the
quarter ended June 30, 2002 primarily due to debt reductions and the
refinancing of the Senior Subordinated Notes.
System-Wide Performance
For the quarter, Prime reported a 7.8% REVPAR decrease at its comparable
AmeriSuites hotels, as occupancy decreased by 1.2 percentage points to 67.5%
and ADR decreased by 6.2% to $75.01. The major markets affected were Atlanta,
Chicago, Dallas and the Northeast.
For the quarter, Prime reported an 11.8% REVPAR decrease at its comparable
Wellesley Inns & Suites hotels, as occupancy decreased by 6.2 percentage
points to 58.5% and ADR decreased by 2.6% to $59.03. The decrease was
principally attributable to weakness in demand in the Austin, Dallas, Phoenix
and South Florida markets.
Prime's comparable non-proprietary brand hotels, which consist primarily of
upscale full-service hotels in the Northeast, reported a 16.8% REVPAR decrease
for the quarter as occupancy decreased by 7.5 percentage points to 70.1% and
ADR decreased by 7.9% to $105.57. The non-proprietary brands were impacted by
reductions in group business and softness in the greater New York City market.
Brand Development
As of June 30, 2002, Prime had 143 AmeriSuites and 74 Wellesley Inns &
Suites hotels in operation. Prime intends to further expand its brands
primarily through franchising.
During the quarter, two franchised AmeriSuites located in Atlanta, GA and
Raleigh, NC opened. There are also currently five additional AmeriSuites
hotels under construction, including one by Prime. In addition, Prime has a
pipeline of another 59 executed franchise agreements for new AmeriSuites to be
built.
Prime intends to grow its Wellesley Inns & Suites brand primarily through
conversions from other brands. During the quarter, two franchised hotels in
Dalton, GA and Vance, AL were converted to Wellesley Inns & Suites. Prime
currently has one Wellesley Inn & Suites under conversion and a pipeline
of another ten executed franchise agreements for additional hotels.
In September 2001, Prime implemented a new expanded rewards program designed
to enhance its competitive position. Prime has doubled its membership since
September 1 and now has almost 200,000 members. This has resulted in an
increased revenue contribution from the rewards program with frequent guests
accounting for approximately 12.5% of revenues at Prime's brands in the second
quarter of 2002, up from 8% for the second quarter of 2001.
During the quarter, Prime began development of a proprietary reservation
system for its AmeriSuites and Wellesley Inns & Suites hotels. These
services are currently being provided by Pegasus, Inc. Prime anticipates
completing development of the new system in the fourth quarter of 2002. Prime
believes the new reservation system will provide it with improved service
quality and response time, real time inventory synchronization between the
reservation system and the hotels and enhanced customer data.
Financial Condition/Asset Sales
During the second quarter, Prime sold one Wellesley Inn for total proceeds of
$4.4 million, retaining the franchise rights under a 20-year franchise
agreement. For the six months ended June 30, 2002, Prime has generated
approximately $20 million in proceeds from asset sales and has five additional
hotels under contract for sale.
As of June 30, 2002, Prime had $320.2 million in debt and $37.0 million in
cash and cash equivalents. Prime's debt to EBITDA ratio is 3.6 times, and its
debt to book capitalization percentage is 31.2%.
In April 2002, Prime issued $200 million of 8-3/8% Senior Subordinated Notes
due 2012. Prime utilized the proceeds to retire its $190 million of
outstanding Senior Subordinated Notes due 2007. The refinancing will result in
annual interest savings of approximately $2 million.
In July 2002, Prime entered into a new senior revolving credit facility with a
syndicate of financial institutions. The credit facility consists of a
four-year, $125 million revolving line of credit, which under certain
circumstances may be increased by an aggregate principal amount not to exceed
$125 million and is secured by the equity interests of certain of Prime's
subsidiaries.
In connection with the execution of the credit agreement, Prime also notified
the trustee that it is calling for redemption on August 21, 2002 of all of its
outstanding 9-1/4% First Mortgage Notes. The redemption price shall be
103.083% of the principal amount of the 9-1/4% First Mortgage Notes, plus
accrued and unpaid interest, to, but not including, the date of redemption. In
July, Prime borrowed $95.0 million under the new credit facility at LIBOR
+2.25% to fund the redemption of the 9-1/4% First Mortgage Notes.
Other
On June 28, 2002, the American Arbitration Association rendered a decision
with respect to an action brought by Sholodge Inc. (Sholodge) against Prime
seeking monetary damages in connection with the termination by Prime of its
contract with Sholodge to use Sholodge's reservation system for Prime's
AmeriSuites and Wellesley Inns and Suites hotels. The decision awarded
Sholodge $8.9 million in damages. This judgment is not covered by insurance
and exceeded Prime's litigation reserve by approximately $4.5 million.
Accordingly, Prime recorded a charge of approximately $4.5 million against its
pre-tax earnings for the second quarter of 2002. Prime is currently reviewing
its options to appeal the decision.
2002 Outlook
Due to the slower than expected recovery in business travel, Prime's current
estimate is that REVPAR for comparable owned and leased hotels will decrease
by 4 - 5% for the full year 2002 resulting in EBITDA in the range of $90
million and earnings per share before asset transactions and other charges in
the range of $.30. Quarterly estimates of earnings per share for the second
half of 2002 are $.09 to $.11 for the third quarter and $.05 to $.07 for the
fourth quarter. These estimates are based on REVPAR change assumptions of flat
to slightly negative in the third quarter and high single digit increases in
the fourth quarter.
The Company expects capital expenditures to be approximately $25 million in
2002 with the majority to be spent on maintenance capital and new technology.
Based on the EBITDA estimates and after deducting interest, taxes and capital
expenditures, the Company would expect to generate approximately $30 million
in free cash flow in 2002 before asset sales and other non-recurring items.
Prime intends to utilize its free cash flow to continue to improve its balance
sheet and/or invest in its brands.
Prime Hospitality Corp., one of the nation's premiere lodging companies, owns,
manages and franchises 238 hotels throughout the United States. The Company
owns and operates two proprietary brands that compete in different segments:
AmeriSuites(R) (all-suites) and Wellesley Inns & Suites(R)
(limited-service). Also within its portfolio are owned and/or managed hotels
operated under franchise agreements with national hotel chains including
Hilton, Radisson, Sheraton, Holiday Inn and Ramada. Prime can be accessed over
the internet at http://www.primehospitality.com/
Hong
Kong June 2002 arrivals grow 6% - forecasts well on track
AsiaTravelTips.com
- Latest figures released
by the Hong Kong Tourism Board (HKTB) today (29 July) show that Hong Kong
welcomed 1,174,202 visitors in June 2002. This represents an encouraging 6.0%
year-on-year increase in what is always one of the quieter tourist months of
the year.
For the first six months of 2002 to
date, total arrivals have now grown by 12.8% to 7,503,103, which is well ahead
of the HKTB's initial forecast of 7.9% growth for the year.
Announcing the latest figures, HKTB
Executive Director Clara Chong said that if similar growth can be maintained
in the second of 2002, arrivals for the full year should comfortably exceed 15
million. "Although we are still seeing economic and other concerns in a
number of our major markets, the overall picture is quite encouraging,"
she observed. "We have seen positive growth in arrivals every month so
far this year, and both the long-haul and short-haul markets are
benefiting."
Once again, arrivals from Mainland
China led the way in June, totalling 423,763, a 25.7% increase compared with
the same month in 2001. For the first six months of this year, more than 2.88
million Mainland visitors have been welcomed, an increase of 43.2%.
There were also encouraging
performances from Europe, Africa & the Middle East (+5.6%) and Australia,
New Zealand & South Pacific (+3.2%). The Americas, on the other hand,
recorded a minor decrease of 0.1% in June, despite arrivals from Canada
growing by 6.8%. All three long-haul markets, however, are showing positive
overall growth for the first half of the year.
In the short-haul markets, arrivals
from South & Southeast Asia grew by 3.2%, with especially strong
performances from the Philippines (+25.8%), Indonesia (+23.0%) and India
(+22.1%), lured by the HSBC Mega Hong Kong Sale promotion and some attractive
summer travel packages on offer. In contrast, residents of World Cup co-hosts
Japan (-1.7%) and South Korea (-10.9%) preferred to stay at home during June
and support their national teams, leading to a 3.8% fall in arrivals from
North Asia. Taiwan, a difficult market all year with sentiment further
dampened by the crash of a Hong Kong-bound China Airlines flight in May, saw
arrivals fall 11.8%.
For the first six months of 2002,
South & Southeast Asia is showing positive overall growth of +2.2%, while
arrivals from North Asia (-1.7%) and Taiwan (-3.9%) are below those of the
same period last year.
Ms Chong said that now the World
Cup was over, a more consistent growth pattern was expected in the short-haul
markets during the next two months. "Arrivals from Japan and South &
Southeast Asia in the early part of July have looked especially
encouraging," she noted. "We already know that a lot of visitors are
coming either in special tour groups or as individuals to experience our Mega
Hong Kong Sale shopping extravaganza, which has been very positively received
by the travel trade and media across the region and still has the rest of July
and August to run.
"Another positive development
is the increase in air capacity between Taiwan and Hong Kong following the
signing of a new air services agreement," Ms Chong added. "This,
coupled with the introduction of the iPermit electronic visa system earlier
this year, should make Hong Kong a more attractive long-weekend destination
for Taiwan residents."
Same-Day Visitors
During June, 63.1% of all visitors
stayed for one night or longer, compared with 63.3% in June 2001. The
remaining 36.9% continued to other destinations on the same day. (Note: These
figures only include travellers who passed through Hong Kong Immigration, not
those who were solely transit passengers)
For the first six months of the
year to date, 64.3% of all visitors have stayed for one night or longer,
compared with 64.6% in the same period in 2001. Visitors most likely to stay
on have been those from The Americas (81.5%), Australia, New Zealand &
South Pacific (80.6%) and South & Southeast Asia (77.6%). In contrast,
only 23.2% of visitors from Taiwan have stayed overnight, as a significant
proportion are business people who continue by land to or from destinations in
Southern China.
Hotel Occupancy
Average hotel room occupancy across
all categories was 79% in June, compared with 77% in the same month in 2001.
For the first six months of the year to date, average
occupancy now stands at 82%, compared with 78% in the first half of 2001.
Hotels in the top tariff group have achieved 77% occupancy, while those at the
next level (High Tariff B) rank highest with 85%. Hotels on Hong Kong Island
beyond the main Central to Causeway Bay corridor are proving the most popular
choice, achieving 87% occupancy for the first half of the year.
Palm
Springs Market Overview
Written By:
Namit Malhotra
HVS International
Prior to the events of September 11th, the market was
performing at levels on par with 2000; however, since September 11th the
market occupancy declined somewhat. While the market displayed weakness
in comparison to other markets in California, it remained relatively healthy.
Specifically, occupancy in the area in 2001 finished at 59%, which is
approximately three percentage points below the 2000 levels. The Palm
Springs area has seen occupancy in the low-to mid-60% range in each year since
1996. In the six years preceding 1996, the market occupancy was in the
mid 50% range. In terms of average room rate, the market has seen room
rates increase in line with inflation since 1990, albeit the rate of growth
was much higher in the later half of the decade. It should be noted that
supply increase in the market has been relatively moderate since 1990.
In the near future, new supply throughout the area is also expected to remain
moderate due to a dearth of available financing and the difficult development
environment. In terms of average rate, the marketwide ADR for 2001 was
roundly $123, slightly higher than the market's $121 average rate achieved in
2000.
In the year-to-date period through May 2002, the
marketwide occupancy experienced further erosion by ending at 68.3%,
compared to 71.4% occupancy achieved in the same period last year.
Furthermore, during the same period, marketwide average room rate was down
5.1%, or $139.71, as compared to 2001. Although the year-to-date data
reflects a strong decline in occupancy, the weekend demand has remained
strong. Since meeting and group demand is showing some signs of
recovery, it is likely that occupancy has bottomed out. However, some of
this recovery in demand is anticipated to occur at lower room rates and, as
such, the near- to mid-term average rates are expected to be depressed.
It is conceivable that given the market's high seasonality, any measurable
growth in average rate would indicate a real recovery in market conditions.
Palm Springs is a popular destination and known as the
“golf and tennis capital of the world.” Coachella Valley, which includes
the communities of Cathedral City, Desert Hot Springs, Indian Wells, Indio, La
Quinta, Palm Desert, Palm Springs, and Rancho Mirage, are commonly referred to
as the Palm Springs area. The Coachella Valley is made up of over 120
hotels containing approximately 14,000 rooms, of which 15 properties are
considered to be resort hotels. The market draws most of its demand from
leisure and group meeting sources.
The Coachella Valley has a reputation as one of the
premier resort destinations in the United States, with over 100 golf courses
and 600 tennis courts. The economy of the Coachella Valley depends
heavily on vacationers and resort visitors. The health of the service
industries is vital to the area's economy, which has witnessed relatively
limited development in other economic sectors. Affluent leisure and transient
residents, and the conducive atmosphere for corporate group meetings and
conventions, have contributed to the growth of the resort- and tourism-related
service industries in the area. A majority of these visitors come from
Southern California, with approximately 16% of the area visitors originating
in Los Angeles County.
In the past, Palm Springs Regional Airport has
historically been an issue of concern for the area's tourism-related
businesses. The airport was unable to handle large jets, given the short
length of its runway. Thus, few flights were available to markets other than
Los Angeles, requiring visitors from outside Southern California to take a
connecting flight either into Palm Springs or Ontario. Limited airline
access to the market was a competitive disadvantage relative to markets such
as Phoenix/Scottsdale, San Diego, and Las Vegas, particularly in attracting
group meeting demand. Recent expansions have addressed some of these concerns,
however, the high seasonality of the market is a deterrent for some airlines,
which greatly decrease the number of scheduled flights in the off season.
Following the events of September 11th, there were further reductions in
scheduled flights into Palm Springs. Because of the challenges posed by
the airport, the area’s hotels have had to rely more on markets within
driving distance of Palm Springs. This phenomenon has paid off in the
past few months as travelers, wary of flying, have chosen
"drive-to" markets such as Palm Springs. With overall travel
demand expected to increase in the next couple of years, along with relatively
minimal increase in room supply, market occupancy is expected to remain in the
low-to mid-60% range.
For
further information, please contact:
Namit
Malhotra
HVS International
PATA
releases E-Fare Barometer
ASIATravelTips.com
- The Pacific Asia Travel
Association (PATA) has released its latest E-Fare Barometer which shows the
disparity in ex-Frankfurt air fares for 10 Asian destinations booked via the
Internet on e-bookers.com.
The aim of the PATA E-Fare
Barometer series is to assess the competitiveness of Asian destinations in key
tourism source markets by comparing air fares available to consumers through
Internet travel portals.
The July 2002 Frankfurt report
shows that:
• Per mile, Singapore was this
quarter’s least expensive destination from Frankfurt, with an average
per-mile fare of US$0.051. Sydney was the second least expensive destination
at US$0.052. Tokyo was third at US$0.055.
• Based on the Barometer’s
average e-fare measure, Tokyo was Frankfurt’s least expensive PATA
destination with an average return economy-class e-fare of US$640. Singapore
was the second least expensive, with an average e-fare of US$657.
The ten destinations under
scrutiny were Bangkok, Denpasar, Hong Kong SAR, Phuket, Kuala Lumpur,
Singapore, Sydney, Taipei, Tokyo and Yangon. All fares quoted were for the
travel period September 7-13, 2002. Only airlines with daily flights were
considered in the research which was undertaken July 20.
PATA Strategic Information
Centre, Managing Director, Mr. John Koldowski, said the E-Fare Barometer was a
very valuable tool which travel destinations, airlines, hotels and tour
operators could use to better understand online travel trends. "As air
fares account for the majority of a traveller’s budget, it is crucial for
NTOs and other tourism interests to understand the differences which consumers
are finding in the increasingly important online marketplace," he said.
E-Fare Barometer was researched
and written for PATA by Axess Asia, Managing Director, Mr. James Reinnoldt,
who has completed similar studies ex-London, Los Angeles and Sydney.
Copies of the latest E-Fare
Barometer are available from PATA at US$100 for PATA members and US$250 for
PATA Chapters and non-members.
Source:
ASIA
Travel Tips.com
Green
light for the transformation of WTO into a specialized agency of the United
Nations
The
World Tourism Organization may soon gain more international status and
recognition as a specialized agency of the UN. The Economic and Social Council
of the UN (ECOSOC) adopted a resolution by consensus on 24th July 2002 that
has opened the way for WTO to become a specialized agency of the United
Nations Organization. The resolution provides for a negotiations process that
could lead to the transformation of WTO.
The resolution adopted by
ECOSOC authorise the President to appoint members of the Council to a
Committee to Negotiate a relationship agreement between the UNO and WTO. The
draft relationship agreement has to be submitted to ECOSOC for consideration
at its substantive session of 2003. Following a positive conclusion of
negotiations the new status of WTO would require a final approval by both the
UN General Assembly and the General Assembly of WTO.
he Secretary-General of
WTO Mr. Francesco Frangialli stated in his address to ECOSOC Members that the
WTO transformation from related into a specialized agency of the UN will
"constitute a remarkable step forward, which can be characterized by
three words: recognition, effectiveness, and impetus". Recognition,
because it acknowledges the fact that travel, leisure and tourism constitute a
powerful part of modern society that cannot be ignored. Effectiveness,
because, due to tourism's multidisciplinary nature, many agencies and organs
of the system are involved in its expansion in the performance of their own
specific responsibilities.
Transforming the WTO
into a specialized agency would mean greater coherence by increasing the
synergies among those different stakeholders and enhancing the coordination
carried out by ECOSOC. And impetus - because we expect to achieve greater
visibility that would prompt governments as well as multilateral institutions,
especially the Bretton Woods institutions, to pay increased attention to an
industry that brings development," said Mr. Frangialli.
Tourism has become one of
the dominant activities at the beginning of the 21st century. In 2001, in
spite of the first crisis to affect the industry, 693 million visitors
travelled from one country to another. They spent some 462 billion dollars,
making tourism one of the top categories of international trade. "And
this figure, impressive as it is, does not even include expenditures on air
transport, or the activity generated by domestic travel in the different
countries, which is bigger still," underlined Mr. Frangialli. The World
Tourism Organization was established in 1975 as a result of the
transformation, of the International Union of Official Travel Organizations (IUOTO)
into an intergovernmental institution.
WTO-UN relationship began
with an agreement approved by the United Nations General Assembly and the
General Assembly of WTO in 1977. Since 1976, WTO has been an executing agency
of the United Nations Development Programme and, in this capacity, it carries
out a large majority of the tourism development projects it finances around
the world. WTO also has an observer status in ECOSOC. At the internal level,
WTO's staff comes under the "common system", and in 1996 the
Madrid-based organization joined the United Nations Joint Staff Pension Fund.
Australian
Tourism Struggle Continues
AsiaTravelTips.com
- New figures reveal
Australia's tourism industry continues to be hit by major events of last year
as well as global economic uncertainty with overall arrivals dropping by five
per cent for the first six month this year.
Speaking following the release of
the Australian Bureau of Statistics, June 2002 preliminary figures, Australian
Tourist Commission Managing Director Ken Boundy said the figures show a 11 per
cent drop in visitors for June, a five per cent fall for the six months to
June 2002 and a six per cent drop for the 2001/02 year.
"There were around 2.3
million international visitors in the first six months to June 2002 - a drop
of around 131,000 visitors so far this year," he said. "This equates
to around $430 million in lost export revenue -- a significant impact on
tourism operators Australia-wide.
"The figures indicate the
initial recovery forecast following the events of September 11, was optimistic
with arrivals from key markets continuing to be impacted.
"A number of key factors
continue to hamper the return to growth for inbound arrivals including
economic difficulties and air capacity constraints. At the same time we are
facing an increasingly competitive environment, a shift in travel to
short-haul destinations and an overall shrinkage in the travelling
public.
"Feedback from industry
indicates conditions for the September 2002 quarter will be soft. Inbound
arrivals are expected to improve in the last quarter this year, however it is
unlikely that official forecasts of 4.7 per cent growth for this year will be
reached.
Mr Boundy said visitors from
Europe were down by three per cent in the six months to June 2002, with the UK
the only market to record an increase in arrivals (up 2 per cent) during this
time.
"UK visitors fell by 26 per
cent for the month of June, a direct result of the British Lions Rugby Union
tour (which travelled to Australia in June 2001) as well as the impact of the
Soccer World Cup on travel from this market," he said.
"Visitors from Germany, our
second largest market in Europe fell 13 per cent in the six months to June
2002. The general travel market in Germany remains soft and is not expected to
improve over the next few months.
"Industry feedback suggests
the overall outlook for inbound arrivals from Europe is more positive,
particularly the UK, with forward bookings expected to improve in the fourth
quarter. However, the state of the northern hemisphere economies will play a
role in outbound travel from this region.
"The figures show around
218,200 US visitors in the six months to June 2002, a drop of 8 per cent
compared to the same time last year. Factors including the decline in air
capacity on the US-Australia route and the recent shocks on the US stock
market will continue to impact on outbound travel.
Mr Boundy said there were mixed
results across Asia, with China and Korea continuing to buck the trend,
recording growth in arrivals (up 14 per cent and 5 per cent respectively for
the six months to June 2002).
"Arrivals from Japan
continue to show signs of improvement, with arrivals up by two per cent in
June, the second consecutive month of growth," he said. "There are
also indications that Australia has increased it's share of outbound travel
from Japan, with the trend expected to continue.
"However, visitors from a
number of markets in the Asia region, including Taiwan (down about 18 per cent
in the six months to June 2002) continued to decline."
Source:
ASIA
Travel Tips.com
Bali
and Tasmania voted two "Best Islands"
TravelWeeklyEast.com
-
Representatives of
both Bali and Tasmania are celebrating being named first and second "Best
Islands" in the US magazine Travel and Leisure's 2002 Reader's Choice
Awards.
The
August issue votes Bali the world's best island destination, a place held by
Maui since the poll began in 1998. According to Bali Update, Bali jumped from
number six last year. Tourism Tasmania's marketing manager John Pugsley, told TravelWeekly
it was an honour for the Australian state to end up ahead of other island
destinations.
"The
sort of people that are coming to us are very active; we have 25,000 users per
month on our website. They are the sort looking for something very different
in a holiday, and they are the sort voting for us. They don't want to go with
the crowd."
GHM
takes over The Andaman, Langkawi - but loses two Bali properties
As
of
1 September 2002
, Singapore based General Hotel Management, will assume
responsibility for the management of The Andaman, a deluxe 188-room
property located on the
island
of
Langkawi
in
Malaysia
. Formerly self-managed by the Owner, The Andaman is adjacent to GHM’s
award-winning property, The Datai.
Meanwhile, GHM's The Chedi Ubud and The Serai
Manggis in Bali will be rebranded Alila Ubud and Alila Manggis
respectively, with effect from October. The rebranding is likely to shock
tour operators worldwide, considering the hotels - The Chedi in particular
- had established their niche and fame under General Hotel Management (GHM),
of which individual hotels are commonly perceived as second tier to the
exclusive Amanresorts.
Competition too has become more intense in
this segment. In Ubud, Aman-inspired developments are one too many and it
is no secret that The Chedi has lost business to the Maya Ubud, a new
development which is fast making the rounds as the rising star in the
area. But the owners of the two properties have decided to manage the
hotels themselves, having formed a new management company, Alila Hotels
Resorts.
Apart from the two properties which came
under their management on August 1, they also manage Alila Jakarta, a new
hotel in the Indonesian capital city. GHM president, Mr Hans Jenni, said
the parting was amicable. GHM has managed both properties for six years.
GHM is negotiating to put a new Chedi in Ubud, but "nothing is
confirmed yet", Mr Jenni said. Until it does, GHM now has only one
hotel in Bali, The Legian. It also operates The Datai Langkawi, The Strand
Yangon, The Lalu Sun Moon Lake and The Chedi Phuket. A new 96-room hotel,
The Setai South Beach Miami, will open in December 2003 marking GHM's
entry into North America.
For further information,
visit: www.ghmhotels.com
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