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Newsletter - May 6, 2002

M. S.  OBEROI, A PIONEER IN LUXURY HOTELS, DIES AT 103

New York Times    -  Mohan Singh Oberoi, who as a penniless hotel clerk in Simla, India, mortgaged his wife's jewelry to buy the first hotel in an international luxury chain that bears his name, died yesterday at his home near New Delhi.

He was 103, although for years he had said he was born in 1900 because he did not want to be seen as dating from the 19th century.

He helped bring the Indian hotel industry into the 20th century, though he scandalized India when he first introduced chambermaids into the land of bearers, sweepers and stewards without number.

Often called the Conrad Hilton of India, Mr. Oberoi specialized in spotting and refurbishing run-down and undervalued properties.

With about 35 luxury hotels in India, Sri Lanka, Nepal, Egypt, Australia and Hungary, the Oberoi group became India's second-largest hotel company, after the Taj group, which belongs to the Tata conglomerate.

Mr. Oberoi's business philosophy emphasized finding the right concept over financial calculations. "You think of money and you cannot do the right thing," he used to say. "But money will always come once you do the right thing, so the effort should be to do the right thing."

He was a stickler for detail, down to the amount of down in every pillow and the exact length of the stem of every restaurant flower.

But he was also a modernizer. As a young man he had scandalized his Sikh family by shaving off his beard. And in 1957, when he opened the Oberoi International in New Delhi, he brought in chambermaids with vacuum cleaners to replace the five or six male servants who usually served an Indian hotel room.

"Parliament shuddered in righteous indignation, honorable members conjuring up visions of lewd guests hollering `As you make my bed, so shall you lie on it,' " his biographer, Bachi Karkaria, wrote in "Dare to Dream: A Life of Rai Bahadur Mohan Singh Oberoi" (Viking, 1992.)

Mohan Singh Oberoi was born on Aug. 15, 1898, in Bhaun, a small village now in Pakistan. Driven out by plague with his new wife, the former Ishran Devi, in 1922, he sought work in Simla, the hill station where the British governed India during the stifling summer months.

His well-knotted tie and shiny shoes impressed Ernest Clarke, the manager of Simla's best hotel, the Cecil, and he got a job as a hall clerk. He later became manager of Mr. Clarke's own smaller hotel and in 1930 mortgaged his wife's jewelry and borrowed everything he could to buy the British owner out. Later Mr. Oberoi was to buy the Cecil as well.

In 1937, he took over Calcutta's once-elegant Grand Hotel, which had been closed for five years by fears of cholera in its water supply. Borrowing against his Simla property, he began a renovation program and eventually persuaded the first guest to move in, guaranteeing him soda water to drink and food cooked outside the hotel.

The outbreak of World War II was a turning point in Mr. Oberoi's career. He prevented the British army from requisitioning the Grand by offering to reserve it for officers and feed them cheaply, though charging extra for women who spent the night.

He then wrote to all the liquor merchants in India telling them to send supplies and name their prices. Business was brisk and profitable.

"Cashiers unable to count the money were shoving it under the carpet to resume the task next morning," Mr. Karkaria wrote in "Dare to Dream." The British government rewarded him with the title Rai Bahadur for his services.

Next, Mr. Oberoi began secretly buying shares in what was then India's leading hotel company, Associated Hotels of India Ltd. In 1944, he arrived uninvited at the annual meeting, carrying his controlling shares in a canvas bag, which he presented to the directors.

The 1965 war between India and Pakistan cost Mr. Oberoi his four Pakistani hotels. Although the president of Pakistan, General Zia Ul-Haq, apparently promised to return them, he was killed before Mr. Oberoi could visit him.

Mr. Oberoi then began to expand abroad, often taking over management of run-down hotels or raising money from wealthy Saudi Arabians because of India's tight controls on capital outflows. Acquisitions included the Soaltee Hotel in Katmandu, the capital of Nepal; Mena House near the Egyptian pyramids; and the run-down Hotel Windsor in Melbourne, Australia.

His elder son, Tilak Raj Sing, known as Tikki, died in 1984; his wife died four years later. He is survived by another son, Prithvi Raj Sing, known as Biki,  and three daughters, Swaraj, Rajrani and Prem.

MS OBEROI: HOTELIER PAR EXCELLENCE

The Financial Express, India  -  

August 15, 1934: The morning after 36-year old Mohan Singh Oberoi bought Hotel Clarkes in Shimla for a princely sum of Rs 20,000 — raised by selling his wife’s jewellery for Rs 500, the rest a loan from an uncle — his eldest daughter Rajrani greeted him with a birthday kiss. “Just wait, bitti, when you grow up, wherever you go, there’ll be an Oberoi hotel.”

He fulfilled his promise, setting new standards in the hotel industry in India and abroad and went on to become, what none other than JRD Tata said, “the country’s only exclusive hotelier”.

The man who lost his father when he was barely six months old and failed the examination for the post of a lower division clerk in Public Works Department of the Punjab Government in 1922, was conferred with the title of ‘Rai Bahadur’ during the same British Raj in 1943 and went on to open the first modern, five-star international hotel in India, The Oberoi Intercontinental, in Delhi, in 1965.

There are legendary stories of his hard work. While manning the reception desk one night during his employment at Hotel Cecil in Shimla, a guest, famous barrister Motilal Nehru (Jawaharlal Nehru’s father), asked if there was someone who could type out a document running into many pages by 5 am. The young clerk surprised Mr Nehru by replying, “I’ll do it, sir.” At 4.45 am, Mr Oberoi knocked at Mr Nehru’s door and handed over the typed pages. There was not a single mistake in typing. He was rewarded with Rs 100 for the work, which he used to replace torn blankets in his small, cramped tenement located at the base of a hill. His salary those days was Rs 60 per month and Mr Nehru’s reward was enough to buy watches for himself and his wife Ishran as well.

Barely four years after he bought out Ernest Clarke’s share in Hotel Clarkes, Mr Oberoi signed a lease to take over the operations of the 500 room Grand Hotel in Kolkata which was on the block following a cholera epidemic in the city.

Another six years down the road, Mr Oberoi made his first grand acquisition. He bought a controlling stake in the Associated Hotels of India which owned the Cecil and Costophans in Shimla and the Maidens and Imperial in Delhi. The company also owned a hotel each in Lahore, Murree, Rawalpindi and Peshawar, now in Pakistan.

In 1973, Mr Oberoi set up the 35-storey Oberoi Sheraton in Mumbai. He was the first Indian to do business with international chains and foreign occupancy soared to an average of 85 per cent.

He was the first to employ women in the hospitality sector and founded The Oberoi Centre for Learning and Development in 1966 which is today considered among the best institutions in Asia with almost 100 students graduating each year.

When Newsweek honoured him in 1977 with an award for making significant contributions to the world of business, he was asked what motivated him to become one of the biggest hoteliers in the world, the Rai Bahadur replied, “The idea was never merely to make money. The compulsion was to think big, always to offer the best and let it happen. Name, fame and profits would automatically come in.”

He dabbled in politics during the sixties and seventies, getting elected to the Rajya Sabha in 1962 and 1972 and to the Lok Sabha in 1968. Last year, the government conferred the Padma Bhushan upon him.

His retained his simplicity and unique humility by often saying, “I have been able to accept the challenge and make good — there is comfort in knowing that whatever little I have achieved, has also helped to raise the prestige of my country.”

M S OBEROI: THE GRAND OLD MAN OF HOTEL INDUSTRY

ExpressIndia  Rai Bahadur Mohan Singh Oberoi, the grand old man of the Indian hotel industry, who died at the ripe old age of 103, was a classic symbol of an inspiring rags to riches story of contemporary India.

Oberoi single handedly built an empire of 37 luxury and first class international hotels in seven countries after he began his career as a desk clerk at the Cecil hotel, Shimla.

Born on August 15, 1898, in Bhaun, a small village in the Jhelum district (now in Pakistan), Rai Bahadur Oberoi was only six-months-old when his father died and since then life was a struggle for him.

He has gone a long way since he acquired his first property -- the Clarke's hotel in 1934 in Shimla, the then summer capital of India by mortgaging his wife's jewelry and all his assets.

Four years later, he signed a lease to takeover operations of the 500 room Grand hotel in Calcutta which was up for sale following a cholera epidemic. He turned it into a highly profitable business venture.

There had been no looking back since. In 1943, he went on to acquire the Cecil and Corstophans in Shimla, the Maidens and the Imperial in Delhi and a hotel each in Lahore, Murree, Rawalpindi and Peshawar.

Having consolidated his earlier ventures, Rai Bahadur Oberio entered into an agreement with global hotel chains, to open the first five star international chain the Oberio Intercontinental in Delhi in 1965.

Oberoi, recipient of the prestigious Padma Bhushan Award last year, was the first one to set up a travel agency Mercury Travels after independence.

Oberoi had realised that the hotel and hospitality business was greatly dependent on travel agents, a vital element in the distribution chain.

With his characteristic vision and imagination, he also converted dilapidated palaces, historical monuments and buildings into the most magnificent hotels such as the Oberoi Grand in Calcutta, the historic Mena house in Cairo and the Windsor in Australia.

The tremendous success of the Oberoi empire can be gauged by the fact that 13 Oberoi hotels are members of the 'leading hotels of the world', a prestigious association.

Under his leadership, the group also introduced its second brand of first class international hotels in leisure and business destinations under the name of trident hotels.

His achievements and successes. however, did not cloud his simplicity and old fashioned charm as he was an epitome of humility.

Success and fortune did not come so easily to Oberoi, who with his customary confidence, grit and sheer drive to succeed was able to set up a big empire.

He became the first Indian to run the largest and finest chain and in these tumultuous years just prior to India's independence, Oberoi met and interacted closely with the would-be leaders of free India, all of whom were, at one time or the other, guests of his hotels.

In 1965, he opened the first five-star international hotel in Delhi, besides launching flight catering operations and a travel agency.

Oberoi, the doyen of the hotel industry, offered facilities in the hotels which no other hotel in the country could remotely match.

This achievement was further enhanced by launching a 35-storeyed Oberoi Sheraton in Mumbai in 1973.

Oberoi was the first Indian to do business with international chains which led to heavy influx of international travellers.

He was also the first to employ women in the hospitality sector and also founded the Oberoi School of Hotel Management, in 1966 now renamed the Oberoi Centre of Learning and Development.

Apart from this he exported management expertise to Australia, Egypt and Singapore where the group gave the management of existing luxury hotels, a run for their money.

 

MERISTAR HOTELS & RESORTS TO MERGE WITH INTERSTATE HOTELS

MeriStar Hotels & Resorts (NYSE: MMH) and Interstate Hotels Corporation (Nasdaq: IHCO), the nation's two largest independent hotel management companies, announced that they have signed a definitive agreement to merge.

The combined company will be the premier independent hotel operator in the world, operating more than 86,000 rooms in 412 hotels, representing over 30 franchise brands in North America and Europe. The combined company will possess expansive operational and financial resources enabling it to provide state-of-the-art services to hotel owners.

The combined company, to be named Interstate Hotels Corporation, will include BridgeStreet Corporate Housing Worldwide and Doral Resorts & Conference Centers. It will have estimated 2002 pro forma revenues of $340 million, and estimated pro forma EBITDA of $33 million to $35 million. The transaction is valued at approximately $68 million based on MeriStar's closing stock price of $1.21 on May 1, resulting in a total market capitalization of $260 million for the combined company.
The combined company will be headquartered in Washington, D.C. while maintaining a significant operating presence in Pittsburgh. Paul W. Whetsell, MeriStar chairman and chief executive officer, and John Emery, president and chief operating officer, will continue in those roles for the merged company. Interstate's Chairman and Chief Executive Officer Thomas F. Hewitt will serve on the combined company's board of directors. The combined company's board of directors initially will include six members nominated by MeriStar and seven members nominated by Interstate, of which five initially will be representatives from Interstate's Investor Group.

The merger will create an independent hotel management company with a portfolio of more than 400 properties in the United States, Canada and Russia, which will allow us to achieve significant economies of scale, said Whetsell. We expect synergistic corporate savings of between $8 million and $10 million on an annualized basis. The merger will be accretive to stockholders in 2002.

Commenting on the merger, Hewitt said, Since our spin-off from Wyndham International, we have been committed to strengthening the financial structure of our organization and strategically growing the company. We have overwhelmingly concluded that this transaction is in the best interests of our stockholders. We believe the combined company will offer stockholders of both companies a strong platform for future growth.

In addition, we will be a stronger, more efficient operator, allowing us to generate higher returns for our owners and, as a result, higher management fees for the new company than we could have achieved operating separately, Hewitt said. Both companies' properties are complementary, and Interstate's presence in Eastern Europe, combined with MeriStar's BridgeStreet Corporate Housing Worldwide division's experience in Western Europe, creates additional growth avenues.
Both Interstate and MeriStar have a highly focused emphasis on customer service and generating the highest possible returns for their owners, Whetsell said. Our initial internal mission will be to meld our highly similar operating philosophies into one common culture and focus on associate retention. We expect the transaction to be virtually seamless to employees at our hotels.

Transaction Highlights

In the tax-free, stock-for-stock merger of Interstate into MeriStar, Interstate stockholders will receive 4.6 shares of the surviving company's common stock for each share of the 12.2 million shares of Interstate common stock outstanding and each of the 39.4 million existing shares of MeriStar common stock and operating partnership units will remain outstanding. All Interstate stock options will be converted into options to purchase shares of the combined company.

The consummation of the merger is subject to various conditions, including U.S. antitrust clearance and the respective approvals of the stockholders of Interstate and MeriStar. The stockholders meetings and the closing are expected to occur in the third quarter of 2002. MeriStar or Interstate may each receive from the other a termination fee of $2 million plus up to $500,000 in expenses if the merger  agreement is terminated by the other party under various circumstances.

In connection with the transaction, Interstate's Investor Group will convert its Interstate convertible debt and preferred equity into shares of common stock of the combined company and receive a payment of $9.25 million. The Investor Group and Interstate senior management have committed to vote in favor of the merger their Class A common stock, which will constitute approximately 57 percent of Interstate's common stock expected to be outstanding at the time of the Interstate stockholders meeting. Oak Hill Capital Partners and its affiliates and MeriStar management, which collectively own 22 percent of MeriStar common stock, have agreed to vote their shares in favor of the merger.

The respective boards of directors approved the transaction yesterday. The Interstate board action was based in part upon the recommendation of its Special Committee of independent directors. Each board received a fairness opinion from its respective financial advisor. Salomon Smith Barney advised MeriStar in the transaction and Merrill Lynch advised Interstate.

Growth Strategies and Transaction Benefits

Due to economies of scale, a larger customer base, and an improved capital structure, the merged company will have expanded avenues of growth, Emery said. The new company will have a real estate joint venture in place to acquire $300 million to $500 million of hotel assets, and up to $50 million of cash and availability on its line of credit to participate in joint ventures.

The hotel management business unit will use its expanded resources to provide current and prospective owners with a wide array of improved services and benefits, including Internet-based business information systems providing real-time data for better yield management and cost control; broader electronic and direct sales resources, including more than 2,000 sales professionals; increased cost efficiency through national purchasing; and capital for co-investments and joint ventures.
BridgeStreet's growth will be gained through expansion of its national client base and European operations, as well as its recently established licensing program for North American markets.

Doral Resorts & Conference Centers will grow through new management contracts that leverage the strength of the Doral name and a central reservations system.

Capital Structure

A new $113 million senior credit facility will replace the existing revolving credit facilities of both companies. The facility, for which credit commitments have been received, will have a three-year term loan and a three-year revolver with a one-year option to extend. The interest rate on the facility will range from LIBOR + 300 basis points to LIBOR + 450 basis points, based on certain financial covenant levels. Total debt outstanding, net of cash, is expected to be $135 million at closing. Emery commented, The merger significantly improves our capital structure due to the conversion of Interstate's $25 million of convertible notes and $7.25 million of convertible preferred stock into shares of common stock of the combined company prior to closing.

Upon completion of the merger, the combined company is expected to have approximately 105 million common shares and operating partnership units outstanding.

About the New Company

The new company will combine MeriStar's 277 managed hotels with Interstate's 135 properties, giving it more than twice those of its nearest competitor in terms of properties and three times the size in number of rooms. The combined company will be the largest independent operator of full-service Marriott, Hilton and Sheraton hotels, operating properties in 45 states, the District of Columbia, Canada and Russia.

The company also will include MeriStar's BridgeStreet Corporate Housing Worldwide division with more than 3,300 units in the United States, Canada and Europe.

About Interstate

Interstate Hotels Corporation operates 135 hotels with more than 28,000 rooms in 36 states, the District of Columbia, Canada and Russia. For more information, visit www.interstatehotels.com.

About MeriStar

MeriStar Hotels & Resorts operates 277 hospitality properties with more than 58,000 rooms in 42 states, the District of Columbia, and Canada, including 54 properties managed by Flagstone Hospitality Management, a subsidiary of MeriStar Hotels & Resorts. BridgeStreet Corporate Housing Worldwide, a MeriStar subsidiary, is one of the world's largest corporate housing providers, offering upscale, fully furnished corporate housing throughout the United States, Canada, the United Kingdom, France and 35 additional countries through its network partners. For more information about MeriStar, visit the company's Web site: www.meristar.com.

HSMAI APPOINTS SAL DICKINSON, CHME, AS NEW CHAIRMAN

Twenty-year hospitality sales and marketing executive Sal Dickinson, CHME, chief executive of Dickinson & Associates, has been elected chairman of the Americas board for the Hospitality Sales & Marketing Association International (HSMAI).

In this leadership role, Dickinson will guide the organization’s Executive Committee and Board of Directors for a two-year term, April 2002-2004.

“Sal has been a long-time supporter of and active participant in HSMAI, and his outstanding experience in sales and marketing will be a tremendous resource and guiding force for the organization, the chapters and our members,” states Robert A. Gilbert, CHME, CHA, president and CEO of HSMAI.

“His strategic vision and cutting-edge approach to the sales and marketing discipline will have a great impact on HSMAI’s direction and mission to grow into one of the industry’s most powerful brands.”

In his role as HSMAI chairman, Dickinson will work to further HSMAI’s awareness and credibility, as well as challenge the board and chapter leadership to create innovative and successful products and programs for its broad membership base of sales and marketing professionals.

Active in HSMAI all throughout his career, Dickinson has served on HSMAI’s Executive Committee for four years, as well as chairman of the HSMAI Foundation’s Board of Trustees.

Dickinson explains: “HSMAI has been a wonderful resource to me throughout my career, and I look forward to furthering the association’s value proposition to its members as chair. During my term, I plan to have the association deliver a minimum of three educational and professional development programs that can be easily implemented through our extensive chapter network, and to leverage the considerable expertise of our board in the form of a chapter directed mentoring program.”

He adds: “We will continue to grow the HSMAI brand globally through strategic partnerships, our Web-based products and services, as well as through our realigned governance structure recently achieved with our European brethren, but we must deliver value to our members through their respective ‘local’ chapters if we are to continue to grow.”

Prior to starting up Dickinson & Associates in 2001, the travel and tourism marketing veteran was vice president of marketing for MeriStar Hotels and Resorts, and vice president of marketing and sales for South Seas Resorts prior to its acquisition by MeriStar in 1998.

Dickinson’s agency perspective was honed at Yesawich, Pepperdine & Brown, where he spent a decade leading account management teams on behalf of a variety of clients, ranging from international hotel chains to destinations and cruise lines.

Dickinson is a frequent guest speaker and lecturer on marketing and sales in the travel, hospitality and tourism industry, with subject matter ranging from Internet/Web to strategic sales strategies, and is adjunct faculty at Florida Gulf Coast University’s College of Business.

Dickinson takes over the top spot from Bruce J. Himelstein, CHME, senior vice president of sales and marketing, The Ritz-Carlton Hotel Company, who will remain on the Executive Committee as immediate past chair.

Serving on the HSMAI Executive Committee are:

Chairman: Salvatore Dickinson, CHME, chief executive, Dickinson & Associates

Treasurer: Maureen O’Hanlon, managing partner, Marketing Arts Organization

Vice Chair: Erica Kasel, CHME, president, Kasel Luxury Marketing Group

Vice Chair: David Atkins, vice president, business development, Expedia, Inc.

Vice Chair: Jack Schmidt: vice president, sales and marketing, Benchmark Hospitality

HSMAI Foundation Chair: Cindy Estis Green, executive director, The Estis Group

Immediate Past Chair: Bruce J. Himelstein, CHME, senior vice president, sales and marketing, The Ritz-Carlton Hotel Company

President: Robert A. Gilbert, CHME, CHA, president & CEO, HSMAI

HSMAI is an organization of sales and marketing professionals representing all segments of the hospitality industry. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry, while operating as a leading voice for both hospitality and sales and marketing management disciplines. Founded in 1927, HSMAI is an individual membership organization comprised of over 7,000 members from 35 countries and 60 chapters worldwide.

For more information on HSMAI, contact the Hospitality Sales & Marketing Association International, 1300 L Street, NW, Suite 1020, Washington, DC 20005, or call (202) 789-0089. You can also visit the web site at www.hsmai.org.

HONG KONG HOTELS SEEK HELP IN ROOM CRISIS


HK-iMail.com -  HOTEL owners have urged the government to use university dormitories and serviced apartments to cope with the influx of mainland tourists.

The Federation of Hong Kong Hotel Owners has suggested the government co-ordinate with universities to offer rooms for tourists and change the law to allow serviced apartments to be rented out for short-term stays.

``The government could consider relaxing its regulations [regarding serviced apartments] to provide more rooms for tourists,'' federation executive director Michael Li said.

Peninsula hotel marketing director Arthur Kiong described the proposal as ``inappropriate''.

Kiong said the large-scale renovation and the legal complexity involved made the suggestion ``impractical''.

``You can't convert a truck into a sports car because there's a bigger demand for sports cars,'' he said.

The Hong Kong iMail yesterday told how tour operators had complained that many mainland tourists had cancelled or delayed their trips to the territory during the Labour Day holiday week owing to a lack of hotel rooms.

Retailers suffered most from the non-arrival of tourists since many businesses rely more heavily on tourist spending as domestic purchasing power remains weak.

Li, whose association represents 42 large hotel developers, including Hutchison Whampoa and Sun Hung Kai Properties, said universities could help out by converting dormitories into hotel-style rooms that could be let out during holidays.

Li said the industry expected an extra 5,000 to 6,000 hotel rooms to be built by 2005. Most would be in three-star hotels offering the rates that mainland travellers preferred.

Two months after the quota for mainland tourists was scrapped in January, the number of visitors from China surged 70 per cent, boosting the demand for rooms.

However, some hotels have quotas for tour groups from different regions and countries, exacerbating the difficulty for mainlanders seeking rooms.

Although hotel room demand had been rising, operators said, room rates had been falling because of fierce competition and the economic slowdown, which had curbed the number of business visitors.

``Mainland travellers are not high spenders on rooms, they spend more on shopping,'' Hong Kong Tourism Board spokesman Simon Clennell said.

He said the average rate had fallen from HK$672 per night in 2000 to HK$669 last year. The occupancy rate, meanwhile, had risen from 79 per cent to 83 per cent.

Mandarin Oriental spokeswoman Chantal Hooper also said keen competition had kept prices low. ``In general our occupancy rate increased in the first quarter, while rates remained under pressure.''

Li expected occupancy rates to drop slightly after the Labour Day holiday and the problem to ease until the next big influx of mainlanders arrived in October for the National Day holidays.

ROAD MAP FOR AUSTRALIA’S INBOUND TOURISM

The Australian government has released a 10-year strategic blueprint for the country's tourism industry.

Tourism Minister Joe Hockey said the Australian tourism industry would hit the world stage over the next 10 years but for the last 20 years, it had been unfairly left to work on its own by government.

He said the strategy plan was a road map for the industry that would enable it to work more closely with government and reach its full potential.

Australian Tourism Export Council (ATEC) chairman, Andrew Burnes said, "The tourism industry creates 1,000 jobs every week and contributes A$17 billion (US$9.13 billion)to the Australian economy. It is forecast to pass the A$30 billion mark in the next decade.

"Today's announcement and the release of a substantial, all encompassing industry discussion paper is undoubtedly a landmark event.

"The tourism industry is growing faster than the mining, agriculture or manufacturing sectors and has become one of Australia's biggest export earners. It has also become one of Australia's biggest taxpayers.

"Apart from GST, our industry pays PAYE taxes, company taxes, user pays levies, stamp duties, fuel excise and a raft of other charges. Our clients pay departure taxes, ticket taxes for noise, airport usage and employee entitlements.

"Therefore, it is important the tourism export industry embraces this unique opportunity to have a say in its own destiny, because as magnificent as our tourism industry is - together we can make it a lot better," said Burnes.

Source:   TravelWeeklyEast.com


NEW HOTEL REGULATION IN CHINA COMES UNDER FIRE


A new regulation giving hotels the right to prohibit guests from taking food and drink bought outside into their restaurants, pubs and dancing halls, has come under fire.

The China Tourist Hotels Industry Regulation - effective from today, has already caused wide concern as it forbids consumers from entering hotels with drinks bought elsewhere.

Some officials from the China Consumers' Association and some solicitors indicate that the regulation is an invasion into the rights of consumers.

Drafted by the 2,320-member China Tourist Hotels Association, the regulation is reported to be the first national guild regulation in China's consumer industries.

The association's deputy secretary-general Xu Jingsheng indicated that this stipulation took many issues into consideration, such as the high costs of hotels and food sanitation. Xu also noted that the regulation is in line with international practices in the hotel industry.

"As the association has not ratified any international clause, it does not have any obligation to abide by so-called international tradition," said Wang Qianhu, director of the Department of Consumer Complaints and Legal Affairs under the China Consumers' Association.

Wang noted that the main disagreement for consumers is the high price of drinks in hotels which can be bought for much less in a market.

A tin of Coca-Cola costs 25 yuan (US$3) at some five-star hotels in Beijing while you can buy it for as little as 2 yuan (24 US cents) at supermarkets.

Domestic-made wines are sold for some 40 yuan (US$4.80) around supermarkets in Beijing.

The sale of wines and drinks is profitable for domestic hotels as many of them suffer from deficit, tourist experts said.

Qiao Xinsheng, a professor with the Zhongnan University of Politics and Law, said the options of consumers will not be restricted as the regulation does not deprive consumers of their rights to choose hotels that allows consumers to take drinks bought elsewhere.

Source:  China Daily

 

INTER-CONTINENTAL HOTELS LAUNCHES “WHOLE WORLD HALF OFF” SUMMER PROMOTION

Business Wire   -  This summer, leisure travellers have the opportunity to stay at some of the world's most acclaimed hotels and resorts in some of the world's favorite vacation destinations - from New York City to Paris - at savings of 50 percent or more.

Inter-Continental(R) is launching its new global summer promotion, called "Whole World Half Off," offering leisure travellers the chance to stay at more than 135 hotels, in more than 70 countries, for half the normal price.

The Whole World Half Off promotion is available at participating hotels from May 24 until September 8, 2002, in North America, Latin America and Asia-Pacific, and from June 14 through September 8, 2002, in Europe, the Middle East and Africa. Rates begin at $ 105 at select hotels in the Americas and as low as $ 66 in Europe. Properties participating in this special offer include those in New York City and Paris, as well as those in Tahiti, Bora Bora and Moorea in French Polynesia, Wellington in New Zealand and San Juan in Puerto Rico. For more details or to make a reservation, visit www.intercontinental.com/summersale or call toll-free 1-866-359-9715.

"We're introducing the 'Whole World Half Off' promotion as a means to stimulate international travel," says Jeff Senior, vice president of marketing for Inter-Continental Hotels and Resorts in the Americas. "This promotion directly responds to consumer expectations of finding great deals this summer and at some of the world's most highly regarded hotels. Leisure travellers can combine a fabulous room with full breakfast for two and enjoy it for half the price."

Inter-Continental Hotels and Resorts has been the preferred choice of the world's business and leisure traveller since 1946. From the many historic landmark hotels that are as much a part of a city's present as its glorious past - to the striking contemporary hotels, that reflect the vibrant cultures they represent - to superb resorts that are both a tribute and an attribute to the natural beauty surrounding them - Inter-Continental offers exceptional comfort, convenience and service throughout the world.

Six Continents(TM) 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.

Notes to editors: -- World Half Off may be available only on certain room types and the rate may vary based on room types available; there are a limited number of rooms available. -- Rate is per room per night, double occupancy. -- Black out dates may apply. -- 48 hour advance reservations required. -- Not available to groups or with any other promotional offer. Other restrictions may apply.

The following are some of the service marks owned by Six Continents Hotels, Inc., its subsidiaries or affiliates: Holiday Inn(R), Crowne Plaza(R), Express by Holiday Inn(TM), Holiday Inn Select(R), Holiday Inn Garden Court(R), Holiday Inn SunSpree(R) Resort, Staybridge Suites(R) by Holiday Inn, Holidex(R), Priority Club(R), Inter-Continental(R), Forum(R), Parkroyal(R), and Centra(R).

Six Continents Club(R), Six Continents(TM), and 6 Continents(TM) are service marks of Six Continents PLC and used under license.

Six Continents Hotels, Inc. offers information and reservations capability on the Internet - www.sixcontinentshotels.com, www.intercontinental.com for Inter-Continental Hotels and Resorts, www.crowneplaza.com for Crowne Plaza Hotels and Resorts, www.holiday-inn.com for Holiday Inn hotels, www.hiexpress.com for Express by Holiday Inn hotels, www.staybridge.com for Staybridge Suites by Holiday Inn, and www.priorityclub.com.

For the latest news from Six Continents Hotels, visit our online Press Office at http://www.pressoffice.sixcontinentshotels.com/

SPAIN GETS 20 NEW-BUILD EXPRESS BY HOLIDAY INNS

Six Continents has signed a deal with Spanish developer Med Group which will see it manage up to 20 new Express by Holiday Inn properties in key Spanish cities such as Barcelona, Madrid and Malaga.

6C, formerly Bass, has concentrated its expansion for the limited service brand on the UK, Germany and Spain. There are 70 Express properties in the UK, the success of which is behind plans to open more than 60 in Spain over the next seven years.

Shane Harris, VP development and investments, said that Express was the 6C brand best suited to ‘capitalise on the growing domestic travel market in Spain’.

The developer’s hospitality director Jaun Couret said that the Express brand ‘offers the greatest growth potential in the Spanish hotel market while maximising our return on investment.’

Source:  e-Tid.com

MIKE AMIN NEW CHAIRMAN OF THE ASIAN AMERICAN HOTEL OWNERS ASSOCIATION

The Asian American Hotel Owners Association (AAHOA) publicly announced the 2002-2003 board of directors today.  Elections took place Friday, Apr. 26 during the association’s annual convention held in Nashville, Tenn. 

“We were very pleased by the voter turn-out,” stated Fred Schwartz, president, AAHOA. “This was a year where we had many more qualified candidates than open positions so competition was fierce.”

In addition to electing 12 board members (nine regional directors and three directors at large), AAHOA also bid a fond farewell to Chairman Dan Patel, who moved onto the position of ex-officio, and welcomed former vice chairman Mike Amin into the position of chairman.  

“That’s the way AAHOA’s board is set up,” explained Dan Patel, ex-officio, AAHOA. “The officers, made of up the treasurer, secretary, vice chairman and chairman, have a one-year term in each role.  So every year after elections the new board confirms the succession of the officers, votes in a new treasurer, and the previous year’s treasurer becomes secretary and so forth.” 

The 2002-2003 AAHOA officers are: Mike Amin, chairman, Hitesh Bhakta, vice chairman, Nash Patel, secretary, and M.P. Rama, treasurer.

“I’m have some pretty big shoes to fill,” said Amin, “but with a strong board and staff around me I am confident that we will accomplish great things over the next 12 months.”

AAHOA’s board of directors is divided into three categories with some overlap of members.  This year’s executive committee, in addition to the officers and ex-officio, is comprised of RC Patel, Dinu Patel, Mukesh Mowji, Asvin Patel, Hemant Patel and Ketan Masters.  

The directors at large are Mike Amin, Hitesh Bhakta, Ketan Masters, C.K. Patel, Dan Patel, Hemant Patel, Jags Patel, Manhar Patel, Priti Patel, Surekha Patel, R.C. Patel and M.P. Rama. 

The regional directors are Alkesh Patel, Northwest region, Mukesh Mowji, North Pacific region, Naz Patel, South Pacific region, Robin Prema, Southwest region, Dipan Patel, Upper Midwest region, Kirrit Bhakta, Central Midwest region, Suresh Patel, South Central region, Kirrit Patel, North Central region, Kirrit Bhikha, Midsouth region, Roy Patel, Gulf region, Nash Patel, Florida, Piyush Mulji, Southeast region, Rajni Patel, Mid-Atlantic region, Asvin Patel, Mideast region, Dinu Patel, Northeast region, Jay Vanmali, Western Canada, and Deepak Ruparell, Eastern Canada. 

This year AAHOA also welcomed new allied regional director, Mike Duffy, president and CEO, Paymentech Merchant Services. 

“It was bittersweet to see (former allied regional director) Richard Reyer’s term end,” continued Patel.  “He has been an important part of AAHOA since the beginning and I am sure he will continue to be an allied member.  However, we are also excited to welcome Mike Duffy onto the board.  He has had a strong and respected presence in AAHOA for many years and we are honored that he accepted the position.”

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.  

www.aahoa.com