REVIEW OF OPERATIONS

SEDONA HOTELS INTERNATIONAL

Sedona Hotels International continues to build on its motto “Experience Sedona, where welcome is not just a word, it’s our philosophy”, delivering the utmost in guest satisfaction and Asian hospitality in the region.

In 2001, Sedona Suites in Hanoi and Ho Chi Minh City enjoyed healthy occupancies of 90% and 95% respectively. In fact, Sedona Suites Ho Chi Minh City has bucked the industry trend of falling occupancies despite the fierce competition in the executive residences market and the temporary decline in short-term business travellers, especially from the US in the aftermath of the September 11 incidents.

The ongoing trade sanctions against Myanmar, the slowdown in the global economy and the continued concern over flying after September 11 have not deterred the Group’s hotels in Myanmar from delivering higher occupancies than the previous year. Sedona Hotel Yangon increased its room occupancy to 58% from 44% last year for the 175 rooms in operation. This increase was attributed to the aggressive sales and marketing strategies that generated more demand from the government and corporate market segments. Sedona Hotel Mandalay maintained full occupancy with the 56 rooms in operation. The two hotels are currently market leaders in Yangon and Mandalay.

In Australia, the tourism industry was dampened with the fall of Ansett Australia airlines. Occupancies and average room rates fell for the bigger hotels in the city. However, the Crescent on Bayswater in Sydney was only affected minimally, achieving occupancy of 75%, a slight decline from 77% in 2000. The hotel and retail complex has since been divested as part of the Group’s direction to focus on trading development projects.

Sedona Hotels International continues to deliver the utmost in guest satisfaction and Asian hospitality.

Marketing Initiatives

Internet

Sedona’s corporate website www.sedonahotels.com.sg was revamped in July 2001. The revamped website offers real-time online booking and instant confirmation services. Online customers from around the world can choose to receive regular promotional updates from Sedona via the Sedona Email Club. Holiday planners are able to access travel information on any of the Sedona hotels. The website also features destination guides as well as breaking news and special hotel deals.

According to the World Tourism Organisation Business Council, the Internet will account for one in every four travel purchases in the main generating markets within the next five years. Tapping the growth potential in online travel sales, Sedona has carved exposure in various popular travel websites such as travelocity.com,travelweb.com, asiahotels.com, holidaycity.com, asiatravel.com and placestostay.com.

Click here, stay there - Sedona Hotels’ new cyber-experience has been revamped.

Advertising

Sedona’s advertising campaign for 2001 positions Sedona Hotels as the preferred choice for both discerning business and leisure travellers. The lifestyle print advertisement is featured in inflight, travel and business magazines for maximum exposure and a sound presence amongst the travel trade and consumers.

Trade Shows

Sedona Hotels International participated in several major trade shows in 2001, including the Asean Tourism Forum in Brunei, Travel Indonesia Mart and Exhibition in Jakarta and the International Tourism Exchange in Berlin.

Strategic Alliances

Business alliances were forged with travel partners such as airlines and travel agencies. Sedona had been active in seeking alliances with major credit card companies, and also explored joint promotion opportunities with companies and associations that have a huge membership base, such as Singapore Telecommunications and the NUS Alumnus.

M A R K E T R E V I E W

Signs of Recovery The September 11 incidents have had a negative impact on the worldwide travel and tourism industry. Consumer confidence in flying was deeply shaken and the weak global economy has hit business travel more severely than leisure travel. In the first quarter of 2002, the situation has gradually improved. Reservations worldwide are picking up and renewed growth is expected for 2002, barring unforeseen circumstances. In Vietnam, the ratification of the Bilateral Trade Agreement with the US is expected to improve the business climate and attract more US companies to invest in this emerging market. This will in turn lead to greater demand for short and longterm accommodation in both Ho Chi Minh City and Hanoi. In Myanmar, an increase in arrivals in leisure travellers from the ASEAN region is expected due to the close proximity and the vigorous sales and marketing efforts undertaken to promote the country as an exotic tourist destination. The long haul leisure market from Europe is expected to recover in 2002 when the European economies recover and the confidence in air travel returns.