TARGETED MARKETING PROGRAMS, STRATEGIC GROWTH ARE KEYS TO BRAND

Source: Preferred Hotels & Resorts Worldwide Inc.

July 30, 1999
HONG KONG -– Preferred Hotels & Resorts Worldwide Inc., a global brand of more than 120 of the world’s finest independent luxury hotels and resorts, generated record revenues of more than $100 million for its member hotels, representing double-digit revenue growth for the 1998-1999 fiscal year. The announcement was made by Peter Cass, Preferred’s chief executive officer, at the company’s annual meeting of owners and general managers at the Peninsula Hong Kong.

Revenues generated by Preferred for its member hotels and resorts increased by 21 percent over the previous year. In addition, members received an average return of US$7.93 for every dollar they paid in membership dues and fees. Cass attributed the record growth to the effectiveness of preferred’s targeted marketing programs, and its strategic growth strategy.

“The addition of new member hotels and resorts in key gateway cities and the implementation of several unique marketing programs for the global affluent traveler spurred Preferred to a banner year,” said Cass. He added, “A banner year for the brand means unprecedented return on investment for our members.”

Cass cited the company’s partnership with Neiman Marcus as an example of one of these innovative marketing initiatives. The partnership gives Preferred access to the 160,000 members of Neiman Marcus’s InCircle program, an exclusive loyalty program for the retailer’s highest-spending customers. It also allows InCircle members to earn points in exchange for stays at Preferred properties worldwide.

Brand Strength Through Selective Growth In fiscal 1998-1999, new Preferred properties were added in North America, Europe and Asia, including hotels and resorts in Italy, Ireland, Cambodia, Puerto Rico, New York, Boston, and the metro-Washington, D.C. area. As with all members, these new members were screened for, and met, Preferred’s industry-leading quality assurance and operations standards. “We continue to closely inspect all of our properties on an annual basis to assure adherence our standards of excellence,” explained Rob Cornell, senior vice president of development. “Our rigorous individual property inspection process ensures that only the best of the best hotels display the Preferred banner.”

Hotels and resorts that seek admission to the Preferred system are subject to a comprehensive quality review of the property. A series of unannounced inspections determine the hotel’s compatibility with Preferred’s Standards of Excellence program, which entails a 1,600-line item, 5,800-point third-party inspection process. Only properties that successfully complete the process are presented to the Preferred Board of Directors for possible admission. Cornell concluded, “Our Standards of Excellence programs guarantees consistently exceptional guest experiences at each Preferred property, without compromising the individual distinctiveness that makes each property special."

Established more than 30 years ago by seven of the world’s finest hotels, Preferred’s Hotels & Resorts Worldwide, Inc. was the first organization to create an industry standard for quality in service and accommodations at luxury hotels and resorts. Today, Preferred’s Standards of Excellence program – marked by its unmatched 1,600-line item, 5,800-point unannounced inspection process – ensures customers that its more than 115 distinctive hotels and resorts provide the highest standards of personal service and hospitality worldwide. From its headquarters in Chicago, Preferred provides international reservation services and manages regional and global marketing programs for its share-holding hotels and resorts. To make reservations or to request a complimentary copy of the 1999 Directory, call 1-800-323-7500, visit Preferred’s Web site at http://www.preferredhotels.com or call your travel professional.