eHotelier Newsletter

STARWOOD HOTELS & RESORTS TO OPEN 21 HOTELS WITH 6,800 ROOMS IN ASIA-PACIFIC OVER NEXT TWO YEARS

Growth kicks off with eleven new hotel openings in 2002 in Japan, China,
Thailand and Australia

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) is on track for a strong expansion in Asia-Pacific with 21 new hotels slated to join the group from 2002 to 2004. These hotels constitute an additional 6,800 rooms in 14 key and emerging business and resort destinations in 9 countries. Starwood currently manages 81 hotels and resorts in the Asia-Pacific region.

"We are extremely pleased with the fast track development in
Asia-Pacific that spans top business destinations from Shanghai to Seoul,
and popular leisure spots from Krabi in Thailand to Sanya, China" says
Miguel Ko, President Asia-Pacific, Starwood Hotels & Resorts. "Our brands,
ranging from the luxury to upscale to mid-scale categories, are highly
sought after for their delivery of quality and value to our stakeholders -
owners, customers and associates. We seek to provide the greatest value to
our strategic partners and we are honored that several new projects are in
partnership with owners of existing hotels," added Ko.

* Rayavadee, Krabi, Thailand, a Luxury Collection resort
(opened Feb 2002 - 100 villas)
* Sheraton Grande Ocean Resort, Miyazaki, Japan (opened Jan
2002 - 753 rooms)
* Sheraton Phoenix Golf Resort, Miyazaki, Japan (opened Jan
2002 - 296 rooms)
* Sheraton Shenyang Lido Hotel, China (May 2002 - 623 rooms)
* Sheraton Krabi Beach Resort, Thailand (Dec 2002 - 246 rooms)
* The Westin Miyako, Kyoto, Japan (opened April 2002 - 516
rooms)
* The Westin Shanghai, China (opening August 2002 - 302 rooms)
* Four Points by Sheraton, Port Macquarie, Australia (opening
May 2002 - 110 rooms)
* Non branded properties in Phoenix Seagaia Resort complex :
Cottage Himuka, Luxze Hitotsuba, Hotel Phoenix Kitago (opened Jan 2002 -
315 rooms)

The 100-villa Rayavadee, a Luxury Collection resort, is located in the
coastal province of Krabi, 800 km from Bangkok or approximately 169 km from
Phuket. Its location by Cape Phranang, a charming peninsula with three
beaches and lush vegetation and surrounded by sheer rock formations climbing
hundreds of feet in height, has been called a tropical paradise created by
Mother Nature. Phranang Beach ranks among the world's most beautiful with
its fine sand and crystal clear water.

The Phoenix Seagaia Resort, Japan's largest integrated resort complex,
boasts the Sheraton Grande Ocean Resort, Sheraton Phoenix Golf Resort, 3
non-branded cottages and holiday accommodation (in total providing 1,100
rooms); Convention facilities (5,000-seat international convention center);
Golf, Sports and Entertainment facilities (99 championship holes of golf,
tennis courts, bowling, world's largest indoor water park, zoo, retail
center).

Boasting Shenyang's best address on Qingnian Street, in the prestigious
southern part of the city center, the Sheraton Shenyang Lido Hotel is 10
minutes from the city center, North Railway Station and Taoxian
International Airport. Right in the heart of newly developed Scientific and
Technology Development Zone, this hotel showcases 623 beautifully appointed
guestrooms, individual appointed suites and the signature Sheraton's
Presidential Suite.

Sheraton Krabi Beach Resort is located on a secluded 8-hectare site of
Khlong Muang Beach and enjoys a 500 meter pristine white sand beach
frontage. Khlong Muang Beach is well known for its excellent year-round
swimming conditions as it is protected from the rainy season by Phuket
Island to the far west, the Pha Nga peninsula to the immediate west and Phi
Phi Island to the South West.

The resort, which is expected to open in December 2002, will feature 246
rooms including 30 club floor rooms and 6 executive suites, five dining
outlets, health club, spa center, tennis and squash courts, water sports,
retail center and games room. There are two meeting rooms to accommodate
meetings for up to 200 people.

The heritage 110-year old Miyako Hotel in Kyoto, Japan returns to the Westin
family. The hotel was previously affiliated with Westin Hotels & Resorts
from 1965 to 1995 under a marketing agreement. The 353-room Westin Miyako
has six food and beverage outlets, 13 meeting rooms and a large landscaped
Japanese and Zen garden. The hotel will also be upgrading its total product
to introduce Westin's quality and innovative programs. The Westin Miyako is
the only internationally branded and managed hotel in Kyoto.

The Westin Shanghai is part of the integrated mixed-use Bund Center project
in Shanghai, which will be a symbol of Shanghai as the business and
financial center of China, as well as the renewed glory of the Bund district
in the new millennium. The Bund Center will consist of a 50-storey office
tower, 11,000 sq.m. of retail space, The Westin Shanghai with 302 rooms and
The Westin Residences with 145 serviced apartments.

Starwood's third Four Points by Sheraton hotel in Australia, the Four
Points by Sheraton, Port Macquarie, will be the first full-service
international hotel in Port Macquarie when it opens in May. Situated in the
heart of the town center and beside the Hastings River, the hotel is located
within the shopping and restaurant precinct and overlooks the Pacific Ocean.
Just a short walk away from surf beaches and local attractions, the hotel
features 128 standard rooms including fully serviced 2 and 3 bedroom
apartments, restaurant and bar, recreational and business facilities.

In addition to the above new properties, other hotels and resorts scheduled
to open in 2003 and 2004 include:

* The Westin Kuala Lumpur, Malaysia (2003 - 398 rooms)
* The Westin Saigon, Ho Chi Minh City, Vietnam (2003 - 479
rooms)
* The Westin Dhaka, Bangladesh (2003 - 220 rooms)
* The Westin Green Island, Taiwan (2004 - 500 rooms)
* Sheraton Sanya Resort, China ( 2003 - 480 rooms)
* Sheraton Dahu Resort, Kaoshiung,Taiwan (2003 - 225 rooms)
* Sheraton Dalian Hotel, China (2004 - 368 rooms)
* Four Points by Sheraton, Pudong, China (2003 - 312 rooms)
* Four Points by Sheraton, Shenzen, China (2003 - 300 rooms)
* W Seoul - Walker Hill (2003 - 253 rooms)

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and
leisure companies in the world with 740 properties in more than 80 countries
and 110,000 employees at its owned and managed properties. With
internationally renowned brands, Starwood is a fully integrated owner,
operator and franchiser 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.

After emerging from nearly a decade-long economic slump during 2000, Hawaii was poised to sustain its recovery in 2001. A weak U.S. economy, however, coupled with a persistent lag in Asian market recovery, inhibited Hawaii’s economic expansion throughout the first half of the year, with September 11 bringing Hawaii’s tourism industry to a virtual standstill. Prior to September, Hawaii’s lodging industry was performing at approximately three percent above 2000 levels, with Maui experiencing a nearly seven percent RevPAR growth.

Post September, Hawaii’s lodging market experienced performance declines not seen since the Gulf War period as RevPAR declined more than 50 percent the week following the events. Hawaii’s lodging supply far exceeds demand from both westbound and eastbound travelers. Ohau has been particularly impacted due to its reliance on Japanese tourism, which accounts for approximately 50 percent of Hawaii’s total visitors. Faced with softening leisure demand, a weak domestic economy, a reduction in air-routes, and a reduction in eastbound demand, Hawaii’s lodging industry is anticipated to face significant challenges in 2002.

After September 11, eastbound travel weakened considerably. Japanese arrivals, accounting for approximately 75 percent of Hawaii’s international air arrivals, are approximately 60 percent below the prior year. Eastbound visitors are crucial for the Hawaiian lodging market, spending nearly 50 percent and 27 percent more than U.S. west coast and east coast visitors, respectively.

Westbound travel has rebounded more rapidly than eastbound travel, but lags last year’s results by approximately 15 percent. The impact of the prolonged tourism sector decline on related industries is evident in the recent bankruptcy of American Classic Voyages and closure of its Hawaii office. A reduction in flight routes to Hawaii following September 11 also threatens the tourism industry’s recovery pace, as air travel is the region’s primary demand facilitator. Hawaiian Airlines and Aloha airlines announced a 20 percent and 25 percent reduction in flights, respectively.

Several proposed developments are anticipated to enhance Hawaii’s attractiveness. Construction of Outrigger’s $300 million Waikiki Beach Walk development is anticipated to begin in 2003, including a retail promenade featuring a multi-level entertainment complex. On the Big Island’s Kona coast, the $300 million Hokulia development project, is anticipated to feature an 18-hole Jack Nicklaus signature golf course and 730 ocean view residential units, estimated to cost up to $2 million each. The Hokulia project is anticipated to enhance the Big Island’s infrastructure, adding roadways and public parks.

Due to land and financing scarcity, operators are focusing on purchasing and renovating existing sites. Hilton recently opened the 453-room Kalia Tower at Hilton Hawaiian Village Beach Resort & Spa in Waikiki. The $30 million renovation of the 719-room Aston Waikiki Beach Hotel is anticipated to be completed July 2002. The Waikiki Beach Marriott Resort, recently sold to CNL Hospitality for approximately $130 million, is undergoing a $60 million renovation with completion anticipated by May 2002.

Renovations of the former Sheraton Makaha Hotel on Oahu are anticipated for completion by early 2002. Fairmont Hotels and Resorts acquired and began managing the 450-room all-suite Kea Lani Resort in Maui and Ritz-Carlton purchased the 548-room Ritz-Carlton Kapalua in Maui from the Nissho Iwai Corporation for approximately $143 million.

On the Big Island, the Royal Kona Resort is undergoing an expansive renovation with completion anticipated by early 2002. Negotiations are underway for development of a new hotel on the site of the vacant Kona Lagoon Hotel. In Maui, the Outrigger Wailea’s $25 million recent renovations include a new 4,000 square foot spa, refurbished guestrooms, and the addition of a 32,000 square foot garden court and a water activity area.

The Maui Marriott’s recent $70 million renovation includes refurbished guestrooms, the addition of an extensive water park, new restaurants, and improvements to the hotel’s common space areas. In Oahu, the Kahala Mandarin hotel recently announced plans for construction of a 13,000-square-foot-spa and fitness center anticipated to open in 2002. Ongoing capital investment projects in Hawaii’s premier lodging properties should help induce both leisure and business demand.

Tourism represents a quarter of the Hawaiian economy and approximately a third of its jobs. Consequently, unemployment in Hawaii’s air transportation industry is seven times last year’s levels while hotel-related unemployment is at 20 times last year’s levels. In addition, arrivals to Hawaii are anticipated to be 15 percent to 20 percent less than previous year’s levels during the coming months. To stimulate tourism and encourage hotel development, government officials have recently approved tax breaks, launched a $45 million marketing plan, and began taking steps to enhance airport security.

Tax break legislation provides a 10 percent tax credit for hotel construction and renovations and enables hotel investors to qualify 10 percent of their investment amount against upcoming tax liabilities. Hawaii’s government officials are hopeful that this legislation will induce new investment capital to the islands, help create new jobs, and turn around the slumping economy.

VETERAN HOSPITALITY LEADER JACK CRAVER WINS AH&LA’s 2001 NATIONAL LODGING AWARD

The American Hotel & Lodging Association (AH&LA) presented the prestigious Lawson A. Odde Award to Jack Craver, regional vice president of Horizon Hotels Ltd., located in Lancaster, Pa. Craver received the award during the AH&LA Annual Conference & Leadership Forum/The Lodging Expo, April 3-4, 2002, at the Loews Philadelphia Hotel.

With nearly 50 years of experience in the hospitality industry, Craver spent most of his career holding several executive-level management positions at lodging companies and properties throughout the United States, including The Mayflower Hotel (Washington, D.C.), The Plaza Hotel (New York City, N.Y.), Host Enterprises, and Americana Hotels.

"I am delighted that we're honoring Jack with one of our most treasured awards," said AH&LA President and CEO Joseph A. McInerney, CHA. "He has been a devoted comrade to many in the hospitality industry and has provided inspiration for future leaders coming through the ranks."

In addition to his duties at Horizon, Craver serves as president of his own firm, The Jack Craver Company. Since 1982, the corporation has principally provided hotel operations consulting services to Horizon as well as other lodging companies and properties.

A graduate of the Cornell Hotel School and former U.S. Army lieutenant, Craver is also active in various volunteer positions including, the Cornell Hotel Society and its Foundation, the Pennsylvania Travel Council, Skai Club of Central Pennsylvania.

This distinguished award is named after Lawson A. Odde, the second executive vice president of AH&LA who was responsible for the modernization of membership expansion and financial operations. The Odde Award is given annually to a member of the AH&LA board of directors and is chosen by a vote of past Odde Award winners. The award recognizes individuals who make outstanding contributions to the lodging industry as well as maintain strong relationships between AH&LA and its member state associations.

AH&LA is a 92-year-old federation of state lodging associations throughout the United States with some 13,000 property members worldwide, representing more than 1.7 million guest rooms. AH&LA provides its members with assistance in operations, education, and communications, and lobbies on Capitol Hill to provide a business climate in which the industry can continue to prosper. Individual state associations provide representation at the state level and offer many additional cost-saving benefits.

BULLDOZING HISTORY: THE HOTEL STALIN BUILT THAT BECAME A MONUMENT TO BAD TASTE

The Independent - One of the strangest monuments to the Stalinist era is under threat in Moscow. Planners are discussing whether the Moskva hotel, a bulky gray building that rises a couple of hundred yards from Red Square, should be demolished.

First-time visitors to the city are struck by something odd about the facade of the Moskva. On close examination they see the two wings of the hotel, on either side of its central core, are asymmetrical and in different architectural styles.

The reason is a chilling reminder of the terror felt by Russians under Stalin who feared they might suffer the consequence of unwitting disobedience to the dictator's orders. The architect of the Moskva was Alexei Shchusev, who submitted his design for the hotel to Stalin in 1931. His blueprint had alternative versions for the wings and he imagined that Stalin would choose between the two.

Unfortunately, when Shchusev received the blueprint back he discovered Stalin had simply signed authorising the design in the middle of the page, apparently not realising he was offered a choice. Shchusev, reflecting on the possibly terminal consequences for himself if he did not follow Stalin's instructions literally, built the Moskva with two different wings.

It was finished in 1938 and, with an extension to the east built later, could accommodate 2,000 guests. It was considered the most luxurious hotel in the capital during the Second World War, and Guy Burgess, the Soviet spy in the Foreign Office who defected, lived in the Moskva until his death in 1963. It also became well-known to drinkers of vodka outside Russia because a picture of the hotel appears on the label of every bottle of Stolichnaya.

The Moskva is not the most appealing of buildings, but it is part of the history of Moscow and Russia and as such is listed as a historical monument.

This may not save it. It occupies a prime site, between the Kremlin, Red Square, the Russian parliament and the Bolshoi theatre. Muscovites are cynical at the chances of the hotel surviving. Olga Kabanova, writing in Izvestiya, says some people claim it is a historical monument and must be preserved, while others argue "no historical or architectural monument can survive in the struggle against big money".

Part of the Moskva is closed. Eighteen months ago the city government was looking for an investor prepared to put $250m into a rebuilding project to turn the Moskva into a four-star or five-star hotel. Construction was meant to start last year but there are no signs of activity. This is not uncommon in the capital, where grandiose projects are often announced with a loud fanfare but fail to materialise.

Now the idea is to knock down the hotel and start again. Streets away, the Brezhnev-era Intourist hotel is being demolished. Hotel specialists say the problem is that Moscow has no hotels in the medium-price range. Accommodation is either luxurious or a step up from a doss-house.

The king of stylish hospitality rules his empire and still makes time for his daughters

Business2.com - I used to work much later, but I also used to get most of my gratification from work. Having kids gave me a whole new source of joy. The only thing that makes me drop everything at the office is when they call.

Phone: I take about a half-hour of calls from home every morning, then I'm on the phone all day long at the office. I make a point of not walking around with a cell phone. I like and need the peace.

Scheduling: I carry a clipboard that has daily, weekly, and monthly schedules on it from my assistants. It operates sort of as an umbilical cord between the administrative parts and me.

Meetings: The secret is in being relentless about keeping your eye on the primary mission of each meeting. Social conversations can be a distraction, sure, but a business conversation can be too, if it's about a secondary issue and not crucial to accomplishing the goal.

PDAs: I'm going to give Palms (PALM) to the doormen of all our bars. It's a way to modernize the process of choosing VIPs. We set the tone with door policies years ago -- lines and velvet ropes with Studio 54 -- and I think they're due for an upgrade from the guy with a clipboard deciding who he likes in the crowd.

Staying hip: I read probably 40 to 50 magazines a week on absolutely anything -- technology, news, fashion, travel, music. I might even look at a racy magazine to see how they're treating sex compared with 10 years ago. Magazines are the best way to find out what's in the air, what the social or cultural trends are. I tear out anything that grabs my interest.

Claims to fame: Invented the sexy boutique hotel; earlier created New York's famed Studio 54 nightclub

The Washington Post - D.C. tourism officials, hoteliers and vendors said they are seeing a sooner-than-expected rebound in the number of visitors coming to the District in recent weeks, reflecting what they hope will be a better-than-average spring tourist season.

While the numbers of visitors, hotel nights and spending do not reveal anything conclusive yet, tourism officials say there are encouraging signs. Metro ridership and Smithsonian visits are up and hotel occupancy has been better than expected. Yet the industry remains skittish about the summer months and the second half of the year because business travel has not returned to its usual levels.

"We didn't think the city would recover until the third or fourth quarter of this year and we're seeing the number-one indicator -- room occupancy -- above last year in some cases," said William A. Hanbury, president of the Washington Convention and Tourism Corp. "The way we're tracking right now, we have recovered."

Metro ridership exceeded 700,000 on three days in the first week of April, making it the third-, fourth- and fifth-highest ridership days in Metro's 26-year history.

Smithsonian attendance is up for the first time since Sept. 11. Museum attendance was up 7.8 percent the week ending April 7, compared with the same time last year, said Linda St. Thomas, a Smithsonian spokeswoman. In March, the number of visitors to the Smithsonian was 2.4 million, compared with 2.9 million in March 2001.

Hotel occupancy was expected to be mid-50 percent to 60 percent this spring, but it has steadily been in the range of 70 percent to 80 percent in the past few weeks, not too far below the 80 percent to 90 percent occupancy that hotels usually have in the spring. Business travelers, however, are staying fewer nights at hotels during the week, while leisure travelers are grabbing three-day weekend deals.

Hotel rooms that were once more likely to be occupied by business travelers are being filled by leisure visitors, tourism officials said. To attract visitors, hotels are offering cheaper rooms.

That attracted out-of-towners who were on school break or who rescheduled fall vacations. Those within driving distance to Washington are coming for short stays to see the cherry blossoms and are making day or overnight trips, tourism officials said.

Officials are still concerned about the rest of April and May, but said hotel revenues appear to be ahead of where they expected them to be. The summer could be strong as long as the economy continues to recover and there are no further threats of terrorism.

Some hoteliers said they expect business travel will not fully rebound until the second half of the year because companies are still cutting back on conferences, meetings and client visits. However, some said they expect a fairly strong summer -- perhaps equal to last summer -- if they can hold on to advance business bookings.

Hanbury said the tourism agency's Web site has had more than 258,000 user visits in March, a 200 percent increase from the same time a year ago.

"That shows that while more and more people are using the Internet, they are expressing some interest in coming to D.C.," Hanbury said.

The Web has turned into a windfall for Patrick Leary, general manager at the 224-room Washington Suites in Alexandria.

In February, he said, he did $45,000 worth of business through the Internet, compared with only $3,000 in February last year.

"Consumers are smart. They know Washington needs travelers and they're shopping around," Leary said.

With an occupancy of 79.13 percent for March, his hotel's revenue for the month exceeded by $23,000 the total for March 2001. He said he expects this month to at least equal the revenue of last April.

By keeping rates low, hoteliers have been able to lure reluctant travelers, but said that now they have gotten the demand they want they will gradually raise rates.

According to Smith Travel Research in Hendersonville, Tenn., occupancy in District hotels was down 7 percent the week of March 31 through April 6, to 77.4 percent, compared with the same period a year earlier. That is far better than hoteliers had seen in the months immediately after the terrorist attacks when occupancy rates were down as much as 25 percentage points.

Hanbury said the District has spent $3 million, which includes funds spent for TV ads with the characters of the show "West Wing" and other promotional activities such as Restaurant Week and Holiday Homecoming, which offered hotel and restaurant discounts to lure visitors to the District.

The ads and deals sent a message that "the city is safe and open for business," Hanbury said.

D.C. tourism officials said they plan to spend $2 million to $3 million more in the coming months.

Leary said he expects $140,000 in revenue over last year -- far better than the large losses he had originally predicted after Sept. 11.

"When I made my first budget [after Sept. 11], it was really bad," Leary said. "Then I raised it considerably because it was so ugly, I didn't want to submit it to the hotel's owners because it looked so bad. But now, things are snapping back faster than we thought."

At the Hotel Washington at 15th Street and Pennsylvania Avenue NW, occupancy is nearing what it was at this time last year, said Walid Harb, the hotel's general manager. At 87 percent occupancy Thursday, he was selling rooms for between $150 and $165 a night, compared with $165 and $170 a night around this time last year.

"Honestly, I was really surprised to be even getting that," Harb said. Last fall, he laid off 62 percent of his staff and has brought back almost all of them. But, he said, July and August could be slower as fewer business travelers come to Washington.

AMEInfo.com - Six Continents Hotels will underline its position as the world's most global hotel company, and the leading hotel operator in the Middle East, with a major show of force at Arabian Travel Market 2002 in Dubai next month.

Senior management representatives will join owners, general managers and sales and marketing executives representing Inter-Continental, Crowne Plaza and Holiday Inn properties around the world for the four-day travel trade showcase taking place at Airport Exp Dubai from May 7 – 10.

Drawing hotel representatives from Cleveland to Casablanca, Manhattan to Madrid, and Sharm El Sheikh to Singapore, the Six Continents Hotels' team will be the largest yet assembled for ATM, the Middle East's leading travel trade exhibition.

“This is an increasingly important international event for the industry, and the Middle East is an increasingly important market for the company,” said Raymond Khalife, President, Six Continents Hotels, Middle East and Africa.

“We will be taking the opportunity to highlight our plans for more expansion in Europe, Middle East and Africa, and also to highlight initiatives designed to maintain the highest levels of service for our guests worldwide.”

In the financial year ending September 30, 2001, Six Continents Hotels announced it had 69,000 rooms in its organic pipeline to join its global portfolio, and that more than 20,300 of these new rooms were planned for Europe, Middle East and Africa.

Ever changing figures in the Middle East emphasise the company's commitment to more growth in the region. In the countdown to Arabian Travel Market, the company has 59 Middle East hotels and resorts under management, with eight more currently under development - seven of these to open this year - and many more in the pipeline.

“Six of our new hotels scheduled to open this year are in Egypt and Saudi Arabia,” said Raymond Khalife. “These two countries remain key markets for development, but we are actively pursuing new hotel projects in many other parts of the region, and expect to announce a number of new management contracts in the next month.”

Six Continents Hotels will announce more details of its regional and worldwide development, sales and marketing strategies during an official press conference on the second day of Arabian Travel Market.

Khalife will be joined at the press conference by Mike Martin, Vice President, Worldwide Reservations and Guest Relations, Emma Tame, Director of Communications, Europe, Middle East and Africa, and Dennis Johnson, Vice President, Sales and Marketing, Middle East and Africa

Meanwhile, the hotels to be represented on the company's re-designed ATM stand highlight the regional and global spread of the Inter-Continental, Crowne Plaza and Holiday Inn hotel brands.

The ATM line-up includes Inter-Continental hotels from London, New York, Malta, Hong Kong, Egypt, Saudi Arabia, and the UAE, Crowne Plaza hotels from Bangkok, Geneva and Istanbul, and Holiday Inn hotels from Phuket, Jordan and Bahrain.

Six Continents™ Hotels, the hotel business of Six Continents PLC of the United Kingdom [LON:SXC, NYSE:SXC (ADRs)], owns, manages, leases or franchises more than 3,260 hotels and 514,000 guest rooms in nearly 100 countries and territories.

Six Continents Hotels http://www.sixcontinentshotels.com

Indisputably the most vocal and aggressive Arabian Gulf hotel chain is Abu Dhabi-based Rotana, founded by former Abu Dhabi National Hotels Company chairman and under-secretary of the UAE Ministry of Finance and Industry, Nasser Al Nowais, along with a group of former Hilton managers in 1993.

The chain is going through a period of relative consolidation following a 40 percent expansion last year. Rotana has grown to 17 hotels, mainly in the United Arab Emirates, with its first two resorts just opened in Egypt and a flagship business property in Beirut, Lebanon, from a standing start in 1993.

Abu Dhabi is now the focus of its Gulf development activities, with a US$68 million extension adding 190 sea-facing rooms and a 1,400 square metre ballroom to the existing Beach Rotana Hotel and a $32 million, 108-room extension to the Abu Dhabi Grand Hotel now underway. The latter includes a dedicated food and beverage level and a ballroom for 500.

In addition, the Al Maha Suites there will offer both suites and serviced apartments, plus meeting rooms and restaurants. The chain is now eyeing Fujairah and Dubai’s Jumeirah beach as UAE resort locations.

'Our mission statement is to be the leading Middle Eastern hotel chain,' asserts Selim El Zyr president and CEO, Rotana. 'We combine international know-how and experience with local culture. We make our decisions faster and control our costs better than the international chains, and there are no hidden corporate charges in our services to owners. Our fees are lower and our profits higher than theirs. We are very aggressive in our marketing.'

Metropolitan Hotels International comprises three owned and operated 5-star hotels plus the 4-star Royalton Plaza Hotel in Dubai, and since last year, the Monkey Island Hotel in Bray-on-Thames, a 26-room Grade 1-listed mansion in England. A division of the well-known Al Habtoor Group in Dubai, the chain has a new property just opened in Beirut and is now actively seeking management contract opportunities throughout the region.

Says Metropolitan CEO, Rahim Abu Omar: 'We tell owners that before starting to manage hotels for third parties, we first owned our own, meaning we will treat theirs like our own also. For example, when it comes to the decision between replacement and maintenance of equipment, capital and non-capital expenses, we will consider the issue as if we ourselves were the owners.'

Kuwait-based Safir Hotels & Resorts was originally founded in 1962 as a hotel development and owning company. Associated with the powerful Kuwait Investments Authority, the low-profile company has undertaken various changes of direction and acquisitions in the ensuing years and is in fact a major force in the region’s hotel industry.

Safir now has a varied stock of 33 owned and/or managed, branded and unbranded properties in Kuwait, the UAE, Syria, Jordan, Egypt, Algeria (50 percent ownership of the 15-unit Abou Nawas chain there), and London (the Churchill and Montcalm hotels). With new directors at the helm, the company is now focusing on an aggressive world-wide expansion through management contracts. Confirmed future properties comprise three hotels in Kuwait, two in Abu Dhabi, and one in Dubai. 'We are looking at all countries, word-wide,' stated Safir’s chairman Nasser Al Marri.

Another chain to watch is the Dubai-based mid-range Flamingo Management Company, which manages several properties franchised by Golden Tulip. Flamingo operates seven hotels and suites currently throughout the Middle East, and is expecting to double its presence over the next few years.
With significant resources behind them, authentically regionalised management philosophies and tremendous ambition to spur them on, the Gulf’s home-grown hotel chains appear well positioned to give even the giants like Six Continents, Starwood and Accor a run for their money in the Gulf.

The Asian American Hotel Owners Association (AAHOA) is proud to re-launch AAHOA.com. With a user-friendly layout and new content, the site offers a wealth of features including current legislative information, the latest in industry news and resources, and educational tools including streamed video.

The Web site is another value we can give to our members, vendors and the hospitality industry at large,' said Dan Patel, chairman, AAHOA. 'We're striving to create the best online resource possible and are pleased with our progress so far.'

AAHOA's strong educational focus is reflected throughout AAHOA.com. AAHOA Toolbox provides both informational and functional resources ranging from recession tips for the lodging industry to an interactive hotel franchise fee calculator.

In addition to providing informational and educational tools and resources, we hope the Web site will also be used as the networking opportunity it is,' said Fred Schwartz, president, AAHOA. 'Our goal is to make not only informational and educational resources readily available, but also finding partners, goods and services easier than ever.' In fact, Founding Sponsors of AAHOA.com provides detailed contact information, including hot links, making these valuable resources more easily accessible. By simply logging onto AAHOA's Web site, one can easily connect to other interactive sites thereby expanding both potential savings and online purchasing power.

I encourage everyone to check out the new AAHOA.com, said C.K. Patel, chairman, E-Commerce Committee, AAHOA. "From a searchable News and Articles database to Legal Advice, it's a growing entity - continually updated and always providing its users with new and exciting tools and links.

About the Asian American Hotel Owners Association

The fastest-growing organization in the United States hospitality industry, the Asian American Hotel Owners Association was founded in 1989. AAHOA has a membership base of more than 6,000 members who together own more than 35% (17,000) of the hotel properties in the United States. The association provides year-round programs focusing on education, advocacy and assistance.

Newsletter - April 16, 2002