President's Message

Ichigo Umehara

HALF-YEAR RESULTS

During the first half of this year, our company-wide occupancy was 64.4% versus 71.9% last year. This shows a drop of almost 7%. The average rate is S$180 versus last year's of S$169.50. This increase is due primarily to the opening of The Pan Pacific Hotel Yokohama in August last year and that The Mauna Lani Bay Hotel was closed for two months renovation.

The total revenue is also up, due to Yokohama's contribution, bringing the total to S$242 million compared to S$190 million last year. Our Gross Operating Profit (GOP) ratio is 26.2% versus 30.4% last year. In Asia especially, the drop is about 12% in GOP.

For the first half of this year, we experienced very difficult times. This turbulent economic situation makes us challenge the traditional way of doing business. If we maintain the same way as before, we will not be able to successfully tackle the problems we are facing today.

It is querilla warfare tactics that we must adopt, if we do not take the initiative to take business away from our competitors, they will steal our business from us. We must all clarify our position and our direction, set clear tactics to succeed and JUST DO IT.

In the event where there are limitations to increasing revenue, than steps must be taken to reduce or limit any foreign currency commitments. We then need to ensure that our front line associates handle all guest contact professionally and provide a exceptional experience for the guest that they will return and not pick another hotel. Also, all administrative and heart of the house associates need to be very effective, productive and efficient in their style of work. At the same time, we need to respect local employment regulations and consider how to justify expat employment.

UNICEF CONNECTIONS

We started a joint programme with UNICEF in Thailand four years ago and I am pleased to report that this partnership has since expanded to Bangladesh, Manila and Jakarta and other cities as well. In Vancouver recently, UNICEF held a fund-raising event at our hotel and well know actor Roger Moore (James Bond) was the guest of honour. Our hotel participated in the charitable event admirably and I would like to encourage all of you to be more involved in such projects.

Currently, the programmes that are in place with UNICEF include the Youth Career Development Programme which started in Bangkok with the provision of education and career skills for young girls from the northern part of Thailand. This provided them with skills to get a job to provide a better future for themselves and allowed them to avoid being involved in prostitution. In Dhaka, the hotel has adopted orphans from a local orphanage and provided them with education and other benefits; in Manila, children from the outer islands of the Philippines were brought into Manila by UNICEF and provided with home and an allowance whilst the hotel provided education and hospitality skills.

A programme to start in Jakarta will involve teenagers being educated and trained in housekeeping skills to enable them to find jobs in households. The purpose of these programmes is not to provide money or charity, rather it is to provide an education to the underprivileged to equip them with skills which will allow them to get jobs and make a better future for themselves and their families.

I feel very proud that we are able to make this contribution to the community and we will be looking at other opportunities in other destinations where we have hotels to organise similar projects.

FAM TRIP FROM NEW YORK

Recently, we had a group of 11 people visit our hotels in Malaysia, Singapore and Bangkok. The group was made up of journalists and travel planners from New York. It is great encouragement for us to get the support from such influential people in the industry.

This trip was initiated by Roger Koch whilst he was still in San Francisco and was in conjunction with Malaysia Airlines, Malaysia Tourism Board, Singapore Tourism Board, Thai Tourism Authority and organised by Marcus Associates. Hotels involved were Sutera Harbour Resort, Pan Pacific hotels in KL, KLIA, Kota Kinabalu, Glenmarie, Singapore, Bangkok and Pan Pacific Hotels and Resorts.

It was very encouraging to hear from the group that they thoroughly enjoyed themselves. Many of them had never been to South East Asia and had not heard of our company before. They unanimously pronounced Pan Pacific hotels to be "the hidden jewels" of Asia. They clearly recognised that our associates are what make the difference, Pan Pacific associates are very different from those at other hotels.

This trip enabled us to show the local tourist boards that Pan Pacific is a hotel company that can organise Fam. Trips with high calibre attendees. We look forward to organising more of these. My congratulations to all hotels involved for flying the Pan Pacific flag and showing that we are indeed different from the rest . This has held uplift the profile and perception of our company.

LOOK UP!

In this difficult times, it is the best opportunity for us to show our difference. Although times are tough, we must always look up, have a more positive approach. In Asia, we need to resolve todays issues and problems quickly otherwise we will not be able to succeed tomorrow. We must be aware of today's problems, strategise, develop and implement an action plan to succeed. But remember to Look Up into the sky, it may be cloudy but there is always a blue sky above the clouds. Remember the saying "every cloud has a silver lining", there is always something good to be derive from a bad situation, we just need to find it.

In North America, there is less need to look up, however you need to look ahead , look forward to how you can do even better than you are today.

Fortunately, Pan Pacific has been taking steady steps to counteract the decline in business in the last year. The chinese character Crisis is actually made up of two individual characters for "danger" and "opportunity". There is opportunity out there, we just have to Look Up and we may see them, however if we just look down, we will definitely miss them.

Thank you.

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HOTEL SPOTLIGHT

The Mauna Lani Bay Hotel and Bungalow

- the first hotel in Hawaii to use commercial-scale solar electric energy, project believed to be the largest hotel solar electric system in the world

The Mauna Lani Bay Hotel and Bungalows had contracted with PowerLight Corporation to become the first hotel in Hawaii to be powered by commercial-scale solar electric energy. The power was dedicated on May 29 in a formal ceremony at the hotel, show casing what is believed to be the largest hotel solar photovoltaic (PV) system in the world.

"This is a win/win situation", states Donald Dickhens, General Manager of the hotel. The PowerLight Corporation and its PowerGuard System will enable us to harness the year-round sunshine of our Kohala Coast region and put it to good use in a way that complements our existing source of electricity. Not only will this save the hotel hundreds of thousands of dollars in utility bills, but our integration of solar electric energy will assist Hawaii in becoming much more energy dependent"

The PowerLight PV system covers 10,000 square feet of the hotel`s rooftop. It is a technological feat made possible by lightweight, patented PowerGuard solar electric roof tiles designed for flat to moderately sloped roofs. The tiles incorporate state-of-the-art PV cells backed with insulating polystyrene foam, turning the sun`s free energy into usable power.

"Mauna Lani`s arrow-shaped, flat rooftop is perfectly conducive to this system," states Daniel Shugar, executive vice president of the PowerLight Corporation of Berkeley, California. "This patented new way to put panels on the roof not only installs with no structural reinforcements, but improves the appearance of the roof and the insulation lowers air-conditioning requirements and extends the life of the roof by protecting it from the elements - all while generating electricity."

Over its life, the 100 kWp project for the hotel will displace approximately 14,500 barrels of oil that would otherwise be imported and burned to generate the same amount of electricity necessary to operate the 350-room hotel.

The Big Island is the largest island in the Hawaiian chain, yet its sparse population and reliance on oil for power generation, its energy users are paying one of the highest per unit costs for energy in the nation. While the energy cost is high, Mauna Lani Bay`s ideal location offers two advantages to low utility costs using pollution-free solar electricity: almost year-round sunshine (the Kohala Coast receives and average of only seven inches of rain annually) and Hawaii State solar tax credits.

On February 20, 1998, Senator Malama Solomon introduced a Resolution to the Hawaii State Legislature recognising The Mauna Lani Bay for its pioneering usage of a rooftop photovoltaic system to meet its electrical needs and commending the hotel for its contribution to environmental cleanliness.

Mauna Lani is especially pleased to contribute to keeping Hawaii clean. "We are firmly dedicated to the philosophy of responsible land stewardship, perpetuation of the Hawaiian culture and environmental preservation." states GM Don Dickhens. "The installation of this energy-saving PowerGuard system is in keeping with Mauna Lani`s general philosophy and enhances our worldwide acclaim as a pacesetter among international resorts.

The Mauna Lani Bay project is believed to be the largest hotel solar electric system in the world. It is one of the first to qualify for inclusion in President Clinton`s Million Solar Roof Initiative, a project which endeavours to accelerate the use of solar energy rooftops nationwide. Using the solar roof unit of .5 kW, Mauna Lani Bay accomplishes 200 completed solar roofs at one time. The PowerLight effort is supported by the Utility PhotoVoltaic Group's TEAM-UP programme, which provides cost-sharing from the US Dept. Of Energy.

Adapted from a press release from the team at

The Mauna Lani Bay Hotel and Bungalows

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Putting Our People First

Manila -- A graduation ceremony was held to celebrate the completion of 3 months of pre-opening training. A the ceremony, a fashion parade showing off the new uniforms for associates was held. . . A Japanese language programme was initiated with 60 associates signing up. To accommodate everyone in the classes conducted by Mr. Moto Sakuma, several sessions were scheduled. There will be four-week, one-hour sessions three days a week. . . Stress management workshops are being offered in response to requests from associates. . . Hotel emergency and action team (HEAT) training is conducted on a regular basis to familiarize all on how to handle an emergency. . . Associates celebrating birthdays in May were treated to a buffet lunch at the Manila Diamond Hotel; in June, it was the Heritage Hotel. Steering Committee members and hotel owners were also present. . . . A Make-it-happen afternoon was held to celebrate the end of the 6-month probationary period for associates. This was the first activity organized by the newly formed Associate Care committee. . . . The editorial board for the newsletter was formed, it is made up of all associates. . . . Contests to find the best name for the associate cafeteria and the internal newsletter were launched. The winning names are The Dream Team Cafe and The Pacific Torch.

KLIA -- A session on skin care and make up was conducted by Clinique for all associates who also received beauty product samples. It was a fun session for all who attended, male and female. . . The fifth intake of new associates is undergoing orientation, bringing the total numbers to 403.

Mauna Lani -- Training sessions and seminars conducted included Tort Law and Innkeepers Liability training, sexual harassment seminar, No'eau Ho'oklpa - workplace development council training, Y2k information sessions for executive and management team, Robert Hines (Private Dining Manager) attended classes at Cornell University's Hotel Management training. . .The Union wage increase was effective June 1 with 4% for non-tipping category and 7 cents per hour for tipping category. Lump sum bonus calculation and distribution of checks at end June.

Singapore -- The Sales & Marketing team participated in a 1-day team building retreat at the Pasir Ris Resort. Team members were divided into three groups with different responsibilities.

Pangkor -- 20 Team Leadersattended a 2-day adventure based learning experience (ABLE) programme to build an effective, highly motivated team. . . . First aid training was conducted for 19 associates by the St John Ambulance Malaysia. . . . The monthly associate meeting saw 16 associates receiving certificates for successful completion of the Bomba (fire-fighting) training. . . . The Sport Club committee members carried out two spring cleaning sessions for the community. They also won a soccer game in a friendly match with the Lumut Navy based staff. . . . Tanasegaran (recreation) received his Star of the Month for the Front of the House and Basri (Maintenance) received his for the Heart of the House.

Vancouver -- Two afternoon open houses were held for all assciates to invite their family and friends to view the hotel's newly renovated guestrooms and suites.

Malacca -- At the monthly associates birthday, Acting GM William Sayce presented a gift to all birthday babies. Other activities included a presentation of a certificate in recognition of acts of honesty and integrity to Ranzan bin Borhan (Room Stay Services) and the prize giving ceremony for the recent badminton tournament. . . A 1 1/2 hour session on "My Workplace, My Home" was held to educate associates on treating guests as they would their friends at home. . . Fire training was conducted by the Malacca Fire department; tips on fire prevention and control, how to use the fire extinguisher, simulated exercise on rescue and fighting fires on high floors. . . Chempro Technology conducted a 1/2 day session on Breakages control for associates in IBU. . . . Education Consultant Dolly attended a 5-day Train the Trainer course organised by the Human Resources Development Council, conducted by the Casey Institute of TAFE Australia. . . . The Recreation Club organised a Badminton tournament where Gerald Sian KKK Leong (Saffron Kitchen) emerged as men's singles champion, Murugiah a/l Palaniandy (Safety & Security) and Ariffin Indut (Safety & Security) as men's doubles champs; Fatimah Ahmad (RSS) as ladies single's champion and Nora Ibrahim (RSS) and Fatimah Indut (RSS) as ladies doubles champion.

Bangkok -- Front desk and accounting associates attended a 1/2 day session on increasing the awareness to check all bank notes and traveller cheques. . . . All associates with minimum one year service underwent annual physical examination including chest x-ray, physical check, blood test, cholesterol, urinalysis, optical exam and stool culture-exam. . . . 81 associates attended a 1/2 day AIDS education session. . . . 29 senior associates from various departments attended a session on Labour protection Act to help them understand the new labour laws. . . . 24 departmental trainers attended a 2 day training workshop to encourage trainers to be more confident. . . . 21 associates from F&B were educated on cigars. . . . Associates who have completed 3 years service attended a 1 day re-orientation programme.

Glenmarie -- The monthly birthday party was held at the Travellers Palm and all birthday babies received a gift. Trophies for football, sepak takraw and volleyball were also given out. . . . Service One associates will undergo English Language training and cross exposure at reception/cashier. . . . Associates with minimum one year service were rewarded by hotel owners Hicom Holdings with stock options under the group wide Employee Stock Options Scheme. . . New associates at reception/cashier undergo training on check-in/out procedures. . . . Geetha and Rebecca of Service One Command Centre/Reservations attended a half day programme on telephone techniques. . . Training conducted in F&B included MOR on all outlets; new menu training (Kites Restaurant, Room Service and Garden Terrace); basic English language; a booth for our resort was set up at a local college - Stamford to provide a career talk. . . . An inter-department quiz competition was held with question based on values, hotel facilities and general knowledge.

Wuxi -- Associates with over 5 years service attended a re-orientation session. . . More than 50 associates from the hotel who are members of the Communist Party visited Huai An, Yan Cheng and Lian Yun Gang, the revolutionary bases during China's War of Liberation to celebrate the 77th anniversary of the Communist Party of China.

Kuala Lumpur -- With the forthcoming combination of Telephone Operators, Reservations and Service One departments, training was conducted to familiarise everyone with the new PABX system, taking reservations and answering guest enquiries. . . . departmental trainers participated in risk management programme covering topics like bomb threats, elevator emergencies and handling hazardous materials. . . . Manager and department heads attended the Bullet Proof Managers series to teach them how to handle conflicts. . . . Other sessions included basic and intermediate English, Malaysia Host programme, basic accounting, basic Lotus skills, "How to handle complaints", suggestive selling for F&B, grooming. . . . Norah Nong Chik and Mohd Fadzli attended Diploma in Hotel Management - Kitchen Operations classes.

Johor Bahru -- Departmental training included Paolo - "How to mix a Caesar Salad" and service back-to-basics; Hai Tien Lo - how to seat and wait on guests; Newsroom Cafe - product knowledge of new menu; Housekeeping - use of new chemicals; Banquet - equipment handling and grooming; Front Office - how to check in guests; Telephone operators- how to take messages and transfer calls; Engineering - how to operate lifts in an emergency situation, proper operations of the gondola; Butchery - proper cutting of beef cubes; Newsroom kitchen - cooking Middle East cuisine; Paolo kitchen - cuisine knowledge; Stewarding - proper kitchen cleaning methods. . . . The Front Office team won the inter-departmental bowling tournament with Munir (Front Office) emerging as top male bowler and Rubi Jantan (Housekeeping) as top female bowler for the third year running. . . . 43 associates from Front Office, Housekeeping, Accounts, Engineering Training, Security and Hospitality Institute attended a bomb threat and robbery talk.

San Francisco -- The hotel sponsored softball team encourages not only fun sporting but team building as well.

Dhaka -- 18 F&B associates attended fire fighting and safety procedure training classes conducted by Captain Mahbubur Rahman (Security Manager). . . . 8 associates from Kitchen attended Medicare classes to increase awareness on health and hygiene. . . . conversational English classes were attended by associates from front office, housekeeping and F&B. . . . Management team members and associates of all departments attended computer training classes. . . . 25 associates attended Spirit of Hospitality session I. . . . Team leaders from all departments attended Team Leader Monitoring class. . . . The Silver Service Butler programme has three private lady and two male student participants. . . . Basic English classes for 6 orphans were conducted. . . . Grooming sessions for ladies - "Skin and beauty care clinic" was jointly organised by the hotel and Kollol Group.

Palau -- The 1995 Supervisor and Associate of the year returned from an all expenses paid trip to The PPH Kuala Lumpur. The trip was in recognition of their achievements throughout the year.

STAFF EXCHANGES / CROSS TRAINING

KL -- Salmiah Chik is cross training in Pastry to learn more about pastry and cake making. . . . Jamaliah Razali will enhance her knowledge in payroll and store operations.

Johor Bahru -- Steven Goh (F&B Supervisor, Hai Tien Lo) is on a half year cross study of all F&B outlets in the hotel.

Wuxi -- Four associates started on a half- year cross training in Kuala Lumpur.

Kota Kinabalu -- Anne Tan (Dir. Of Housekeeping, PPH Singapore) will assist with house care operations for 2 weeks. . . . Chef Khoo from PPL Malacca assisted with kitchen operations.

Glenmarie -- Nazrul, Margaret and Mario of Front Office assisted with the front office team at PPH KLIA.

NEW APPOINTMENTS / PROMOTIONS

Wuxi -- Charlie Chen was promoted to Director of Sales & MArketing from the position of Director of Rooms.

Mauna Lani -- Micheal Kemp is the new Director of Sales & Marketing, a promotion from the Director of Sales position that he previously held.

Singapore -- New team members to the Sales department are Eiichi Ishimaru who joins from The Pan Pacific Kuala Lumpur as Director of Sales responsible for leisure and Japanese markets. Two other new members are Sales managers Tan Boon Pin and Adrian Ow who were from the Rasa Shangri-La Resort and ANA Hotel respectively.

Glenmarie -- Steven Loh will rejoin the hotel as the new Financial Controller in early August. Steven was with the KLIA team as Finance Manager Operations.

Kota Kinabalu -- Moses Lee was promoted from Operations Manager - Body Senses to Operations Manager - Body Senses and House care.

San Francisco -- Jimmy Lee has been appointed Accounting Manager. He had been at the hotel for 5 years as Reception clerk, night auditor and accounts payable before leaving to join an independent restaurant.

Johor Bahru -- Khalid Bin Mat Din is the new Director of Education Innovation.

KLIA -- Ali Ibrahim moves from Manager, Absolute Care to Manager, Sales ; Doris Moi is the new Manager Absolute Care whilst Sharon Adbullah is the new Manager, Lobby Operations.

Exhilaration of life can be found only with an upward look. This is an exciting world. Great moments wait around every corner.

- Richard M. Devos -

If you haven't got the time to do it right, when will you

find the time to do it over?

- Jeffrey J.Mayer -

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PAN PACIFIC NEWSMAKERS

Singapore -- Terence Looi (Lobby Executive, Atrium Lounge) was a finalist in the Bartender Cocktail Competition organised by SHATEC. The finals will be held in late July. . . . Hong Kong singer and "Heavenly King" Aaron Kwok stayed at the hotel on his recent trip to attend a press conference to promote the "Hong Kong City of Life - Stars Spectacular 1998" concert.

Yokohama -- The "Popeye" magazine conducted a survey of 50 ladies on their experiences at a city hotel in Tokyo and Yokohama area. The results listed the Park Hyatt Tokyo as first, followed by The Westin Tokyo and third was The Pan Pacific Hotel Yokohama. The most significant factors which placed the hotel in third place were the room amenities - pajamas and the view from the balcony. . . . 12 cellists from the Berlin Philharmonic Orchestra including Mr. Georg Faust stayed at the hotel. . . . Other celebrity guests included Wynton Marsalis and his orchestra.

Manila -- Manila's highly popular morning TV show "Alas Syngko Y Media" broadcast nationwide conducts a live telecast every morning from the hotel lounge on the 21st floor. The 2 1/2 hour show regularly features all amenities of the hotel including the 30 food & beverage outlets at Adriatico Square. . . . One of Manila's top media organisations The Newsmakers Club made up of editors and journalists from the country's leading newspapers and magazines which serves as a forum for the country's leaders had chosen the hotel as the new home for their Breakfast Forum activity. This is held every Thursday morning and is attended by a diverse group of radio, TV, newspaper and magazine editors and journalists who discuss current issues affecting all sectors.

Johor Bahru -- The hotel presented a cake to Her Majesty The Sultanah of Johor on the occasion of her birthday. The cake which consisted of 3 types of cakes - Indonesian layered cake, carrot cake and fruit cake was presented by GM David Callaghan, Guest Services Manager Steven Chua and Chryss Chung, PR Manager. . . . The Chief Minister of Johor, Y.A.B. Dato' Haji Abdul Ghani Bin Othman showed his support for the E-Run by personally signing up for the run. Signing up also were the state's ExCo members including the Chairman of the State Committee on the Environment and Consumer Affairs, Tourism, Culture, Youth and Sports and State Secretary.

San Francisco -- Celebrities included Terrell Davis, Running Back for the Denver Broncos; singers Patti LaBelle and Peter Frampton; The Mavericks (a band) Paul Prudhomme - Celebrity Chef. . . . Molly Cahill, PR consultant for both the hotel and Pan Pacific Hotels and Resorts won two awards from the Society of American Travel Writers, one for a press release on the hotel's "pillow fluffer".

Pangkor -- YB Dato Mahalingam, Minister of Health stayed at the resort on his vacation. He was very impressed with the resort.

KLIA -- BAKTI, a welfare association for all the Ministers wives held a lunch at the hotel, important guests Datin Siti Hasmah, wife of the Prime Minister of Malaysia. . . . Other celebrity guests included singer/actors Aaron Kwok and Ekin Cheng. . . . The hotel also catered lunches for the King and the Sultan of Pahang at the Airport VIP Lounge.

Glenmarie -- US Treasury Secretary Mr Robert Rubin attended a press conference at the hotel ballroom. He was here on an official visit and had meetings with the Prime Minister Dr Mahathir and finance officials.

Kota Kinabalu -- The hotel won first prize in the Recycle Product Challenge Competition organised by the Intan Junior Chamber of Kota Kinabalu. The team comprised James Ngu (Ops.Team Leader - Artist) and his student artists with their winning creation of a display using recycled wine bottles. . . Other guests were The Thai Ambassador to Malaysia, HE Cherdchai Chaivaivid and YB Tan Sri Muhyiddin bin Hj Mohd Yassin - Federal Minister of Youth & Sports, his assistant manager and permanent secretary stayed at the hotel.

Dhaka -- Three receptions in conjunction with the pre-opening of the Bangladesh's longest bridge, the Bangabandhu Jamuna were held in the ballroom. They were hosted by HAMBU construction, World Bank and the Bangladesh government and attended by many dignitaries. . . . The Thai Embassy in Dhaka hosted a cocktail reception with the Thai Ambassador as guest of honour.

Kuala Lumpur -- Pastry Chef Bob Ng Seng Puih participated in the Great chocolate cake taste test organised by the local tourism magazine Vision Kuala Lumpur. The panel of judges comprised of celebrities, diplomatic corp, food experts etc. Results will be announced in August. . . . In conjunction with the Hong Kong Dim Sum King promotion organised by the Hong Kong Tourist Association, a press conference comprising several Hong Kong stars including Louise Lee SSE Keep, Law Hang Keep, Pang Of, Jessica Hester Hsuan and Au Yeung Yiu Chuen was held at the hotel.

Vancouver -- Roger Moore (James Bond) was a guest at the hotel during the recent fundraising event organised by UNICEF. The hotel sponsored the room for Mr. Moore and also a weekend for two prize for the fund-raising which will benefit the UNICEF children.

Wuxi -- The hotel was awarded the 1997 High Profitability Enterprises with Foreign Investment by the Wuxi Association of Enterprises with Foreign Investment. . . . A press conference was held for Mao Ning, a Chinese pop singer who was appointed to sing the Chinese version of the Titanic theme song, "My Heart Will Go On".

# # # # # # #

A Few Secrets to Success

"The air currents of life jolt us out of line and try to keep us from achieving our goals. We must adjust our thinking continually so we can live right."

"Don't let anyone steal your dream."

"...Success is to render more and better service than is expected of you."

Vision and Values

Yokohama -- An Exchange programme will give associates an opportunity to cross train at sister hotels overseas. The process involves a written essay application followed by interviews and an English language proficiency test. Those short listed will receive an offer when the opportunity arises.

Manila -- Care Committees for Associate Care, Guest Care, Health and Safety and Community Care were formed. . . . Jun Parreno (Operations Manager) spent two weeks at KLIA to assist in training in front-office operations.

Singapore -- With the opening of PPH KLIA, six associates from front office and housekeeping assisted with the KLIA operations. The team was led by Mr. Chow Keng Hai (Guest Services, Reservations Operations Manager).

Pangkor -- The Pandy Panda Kids Club and Aetna Insurance are hosting the 1998 Children's Art competition with participating Pan Pacific hotels Puteri Johor Bahru, Pangkor, Glenmarie, Bangkok, Malacca and Jakarta. The competition will be held over 4 months. . . . The Pandy Panda Kids Club will have its own home page on the Internet. The first newsletter and kids passport will be mailed out to 450 members around the world. The Pandy Panda celebrates his first birthday on August 30 and will members staying at the hotel will get a door gift.

Palau -- The resort is sponsoring the annual Family Week when associates' families are invited to visit their workplace, hosted to a tour of the resort followed by lunch in the cafeteria. Free t-shirts will be handed out to all family participants. At the end of the week, a day long picnic will be held for all associates and families with kayak races, volleyball as well as lots of great food.

Johor Bahru -- 24 associates went on an exciting 3-day 2 night trip to the Malaysia National Park. The group had a fun time living amidst one of Asia's rainforests and enjoying activities like canopy walk, visit to a waterfall, jungle trekking and boating.

Dhaka -- The guest comments card promotion has increased responses from the 25-30 received before to 100 in May and 125 in June.

KLIA -- Sister hotels who sent associates to assist with the hotel operations and orientation included Nazrul, Margaret and Mariappan (Glenmarie) ; Steven, Chow Keng Hai, Mustaffa and others(Singapore); front desk associates from KL, Khalid Mat (Dir. Of Education Innovation- Johor Bahru); Jun Parreno(Manila).

KL -- In times of need, associates from front office, housekeeping, engineering, accounts, people innovation and F&B assisted with laundry operations. . . . The hotel was present at a career fair organised by the Stamford College to promote itself as a preferred hospitality employer. . . . Associates assisted with the PPHKLIA front office and housekeeping operations during the soft - opening of the hotel. . . . Wilson Lum and Catherine Ng were invited to evaluate students at the Taylors College on front office operations and professional conduct.

Malacca -- Ranzan bin Birhan from Room Stay Service (RSS) showed great integrity by returning money that guests had left in their room.

EXCEEDING GUEST EXPECTATIONS

Glenmarie -- Shuttle transfer frequencies have been increased, complimentary return transfers to three major shopping complexes daily is offered to guests. . . . During the heavy thunderstorm recently, associates from various departments assisted Housekeeping with cleaning the hotel lobby.

Vancouver -- The Pan Pacific Vancouver became the first hotel in North America to install computers equipped for video conferencing in guest rooms. Guests are charged an additional $30 per night for those business rooms which also provide high-speed Internet access.

KLIA -- Due to the immense interest over the weekends, a Family Meal Deal buffet has been launched at the Gateway Ballroom.

Wuxi -- The Sakura Japanese restaurant now also offers room service.

Pangkor -- Mr Narayanan (Siva) - 2nd Commis in the kitchen reopened the kitchen after 11pm to prepare a full dinner for two guests that had missed the ferry and only reached the resorts after 11 p.m. Not only were the guests appreciative, they were also impressed by his cooking skill as well.

Johor Bahru -- Guests celebrating their birthdays at the Paolo Mediterranean Seafood Restaurant receive a surprise when associates sing the birthday song accompanied by the angklung ( a Malay instrument made of bamboo). The musician with instruments are invited from the Selasih Malay restaurant for these special performances.

Kuala Lumpur -- Benefit changes have been introduced to encourage The Card members to increase patronage. These include additional 50% discount room vouchers, 15% dining discount when dining alone, etc.

Yokohama -- To celebrate the hotel's 1st Anniversary, all associates are dressed in aloha shirts imported through the Mauna Lani Bay Hotel to create a Hawaiian atmosphere. A 2m high Kilauea volcano will be set up in the lobby and will "erupt" five times a day. This Hawaiian celebration will last from 1 July to 30 September. Dancers, musicians and Hawaiian spiritual leader from the Mauna Lani will also add to the celebration. The spiritual leader will bless the hotel on August 7th, the hotel's birthday. . . . A Repeat Guest Programme Team was launched to aim for 30% repeat customers, starting with gathering all available data to establish a data base. . . . The One to One service programme will make the hotel the first one in Japan to have this system.

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F&B Titbits

Johor Bahru -- The Selasih Restaurant team promoted its buffets and wedding packages at the Plaza Angsana shopping centre by putting up a cultural show. The Gemilang Sari dancers put up traditional dances which captivated the audience. A similar promotion will be held at Plaza Pelangi.

Yokohama -- To celebrate the 1st anniversary, Pacific Rim cuisine will be served at Cafe Tosca. 2 chefs from The Mauna Lani Bay Hotel will present the Canoe House menus whilst Jack's and Somerhouse will offer Hawaiian tropical drinks.

Mauna Lani -- A new dining venue at the poolside restaurant Ocean Grill features selected menu items from previous "Cuisines of the Sun" events. This has become very popular among the local diners as well as hotel guests. . . . The 1998 Cuisines of the Sun was held on 25-29 July.

Manila -- The Adriatico Square saw the opening of BRAVO (Italian Cafe) and Tong Yang (Chinese Hot Pot).

Pangkor -- A new menu with new chinaware was recently launched. During the trial period, guests and associates were asked for feedback.

San Francisco -- The PACIFIC restaurant and Chef Michael Otsuka received two rave reviews in local newspapers on two successive weeks from influential food critics. A number of first time guests commented that they came because of the review and all were favourably impressed.

Singapore -- During the Singapore Food Festival 1998, the hotel put together a 4-day Hakodate seafood event offering seafood delicacies, sweets and a specially brewed beer at the Keyaki Restaurant. Two chefs were flown in from Hakodate, together with fresh seafood. A trade fair was also held at The Gallery on Level 4. The opening ceremony was attended by the Japanese Ambassador to Singapore, Deputy Mayor of the City of Hakodate, Chairman of Hakodate City Assembly, Chairman of Hakodate International Tourist Association, Chairman of Hakodate Chamber of Commerce and Industry, Chief Executive of Singapore Tourism Board and Managing Director of Tokyu Investments.

Dhaka -- A 6 day Thai Food Festival was held at Cafe Bazar with His Excellency Mr. Pithaya Pookaman, the Thai Ambassador in Dhaka inaugurating the launch. Two Thai chefs and a six member Thai dance troupe were flown in from Bangkok. A Grand Raffle draw with a first prize of a 3 nights stay at the Pan Pacific Bangkok and tickets from Thai Airways.

KLIA -- The new Traveller's Bar & Grill restaurant will open on 30 July. It is a New York style deli with a wide selection of exciting dishes and beverages. A local singer Prema Lucas will entertain diners accompanied by a foreign artiste from the USA from mid-August. . . . The Banquet team catered for the opening of the KL International Airport for 1200 VIPs.

Sales Marketplace

Mauna Lani ­ The plan of action to achieve September goals is under way. Special mailings, advertising, coop advertising and creative strategies to reach new markets. Special September rates from US$265 for run-of-house rooms with the fifth night free.

Johor Bahru -- GM David Callaghan and Asst.Dir. Of Sales Ann Loh made sales calls to tour operators in Singapore to promote and drive more business into the hotel. . . . A joint promotion with the Day & Night magazine offered the first 30 new subscribers to the magazine a free night stay for two in a Princess room. Readers can also get an Imperial Deluxe room for RM160 nett by presenting a voucher from the magazine. In return, the hotel received free advertising space and editorial write-ups.

KLIA -- Since the soft opening, the hotel's average occupancy has been 85% with an average rate of RM215 nett.

Kota Kinabalu -- The hotel hosted the Marcus Associates, PPHR and Malaysian Tourism fam group made up on leading writers and travel planners. . . . Radio Television Malaysia (RTM) did filming at the Waves Poolside for "Warna Warni", a weekly variety programme to be aired in August. . . Guests and agents from the inaugural flight of Transasia from Taiwan to KK. . . Sales calls will be conducted in Brunei by Elizabeth Sun and Shirley Ibrahim promoting the Borneo Paradise Package. . . . The Bookers incentive programme from 15 July to 20 December where for every ten materialised room nights made with the hotel during the period, one free deluxe room night stay voucher will be given. This also applies to corporate/government and FIT rates.

Wuxi -- From 1 June to 31 August 1998, the hotel offers a Travel Industry Programme to airlines, hoteliers and travel agents at RMB 300 inclusive of 15% service charge.

Bangkok -- The Asia Pacific Coating Show held at the Queen Sirikit National Convention Centre generated much business for the hotel. . . . The Secretary Incentive Program (Sky High) offered bonus points to secretaries to promote business during the low season. . . . In association with the PPHR and Marcus Associates fam group, the hotel hosted a group of leading writers and travel planners from the US.

Malacca -- The hotel hosted Judith Ritter, producer of The Savvy Traveler from Montreal, Canada. The team was in Malaysia courtesy of Malaysia Tourism Promotions Board to view Malacca as well as Sarawak and Penang. . . . The second cocktail party was held at Saffron. Attendees included corporate clients and the local community.

Singapore -- The hotel hosted a FAM group out of New York organised jointly by Pan Pacific Hotels and Resorts and Marcus Associates, Singapore Tourism Board, Malaysia Tourist Promotions Board and Malaysia Airlines. The group was made up of influential travel writers and travel agents.

Glenmarie -- The hotel hosted dinner at Kites restaurant for a German media FAM. group. . . The Marcus Fam. group of media and travel planners were hosted to dinner at the Eagle Suite. Also present were Tourism Malaysia's Director of International Marketing Cindy Lim and celebrity chef Chef Wan Ismail. . . . Liza Kaur went on a trade show organised by Malaysian Tourism Promotional Board in Perth followed by sales calls in Melbourne and Sydney.

Kuala Lumpur -- The hotel hosted the Marcus Associates and PPHR Fam. Group recently. The group was made up of influential journalists and travel planners. . . . Another Fam. Group hosted was the German Press Fam. Organised by PPHR, Malaysia Airlines and Malaysia Tourism Board.

Current Market Trends

Thailand -- The GSM/AIS Promotion campaign was launched to promote tourism during Amazing Thailand 1998/99. The AIS joined forces with 18 hotels and Avis Rent A Car to offer discounts to tourists/foreigners who hold GSM mobile phones. 20% - 50% discount of rooms and car rental for subscribers to any GSM mobile phone network with roaming agreement with AIS.

Japan -- Japan's Prime Minister Ryutaro Hashimoto has stepped down as Prime Minister after the massive defeat of his Liberal Democratic Party in the Upper House election.

Philippines -- The hotel hosted a Centennial Bash in the Pacific Lounge with VIPs, hotel owners, media and celebrities sipped champagne and watched the dazzling fireworks extravaganza from the hotel's helipad.

Malaysia -- About 80,000 foreign tourists are expected to visit the country during the XVI Commonwealth Games in September. The initial projection was between 60,000 to 70,000.

Malacca -- The Mutiara Beach Resort in Malacca has ceased operations whilst the Lion Corporation has sold off its staked in Century Mahkota Hotel Malacca.

SALES PACKAGES

Wuxi -- A special package valid from 1 July ro 30 September offers US$60 net (single) and US$68 net (double) inclusive of complimentary Chinese, Japanese or American breakfast, free entrance to the Fitness Centre and swimming pool.

Singapore -- A long stay programme whereby guests with six consecutive nights stay will enjoy a special package with attractive benefits was launched. . . A new meeting package with accommodation at S$145 per room per night (minimum 8 room nights booking) and seminar rate of S$50 per delegate per day. This package is available from July to September 1998.

Malacca -- A special package of RM198++ (superior room) inclusive breakfast and RM230++ (deluxe room) inclusive breakfast.

Kota Kinabalu -- The Borneo Paradise Package offers a 3 day/2 nights stay at RM430++ per deluxe sea view room including buffet breakfast for 2, welcome drink, late check-out till 4 pm, one free rollaway bed for child under 18 sharing parents rooms and one free bowling game for 2 persons at the Sutera harbour Golf and Country Club. . . . Local Residents Special rate from July is RM119++ per room (Golf view) and RM129++ per room (sea view). . . . The Sutera Golf 1998 package is RM388++ (single), RM618++(twin) on weekdays and RM438++(single) and RM728++(twin) at weekends for Singapore, Malaysia and Brunei residents only.

Yokohama -- The Suite Room package is valid from 1 July to 30 Sept.1998 and offers the Atlantic Suite at Yen 111,111 inclusive service charge and taxes. This also includes free use of sauna, pool and Jacuzzi, in-room breakfast, free mini-bar drinks, morning/evening newspaper, 24-hours stay and a gift. The hotel will also contribute 10% of the revenue from this package to charity.

Kuala Lumpur -- Royal Selangor Pewter is offering hotel guests a beautifully packages hibiscus flower key chain worth RM25. Guests will need to bring the voucher to the Royal Selangor showroom to redeem their gift.

MOTTOS TO LIVE BY....

If at first you don't succeed, then skydiving definitely is not for you...........

A conclusion is the place where you got tired of thinking.......

He who hesitates is probably right.

Johor Bahru -- The E-Run generated overwhelming response from the government, sponsors, official newspapers and the community. The 5,000 target for participants was reached 10 days before the run with many more individuals and companies asking to be allowed to participate. This is the best year in terms of sponsorship and participants; the Chief Minister of Johor flagging off the 5km fun-run on July 26.

Manila -- The UNICEF Youth Career Development Programme was launched in June with 10 children selected from candidates submitted by Pangarap Shelter and the TATAG Foundation. During the first week, the youths received an overview of hotel operations, basic first-aid training, introduction to corporate image and performance guidelines. The second week will involve immersion in housekeeping starting with linens and uniforms. General knowledge in interpersonal skills and English are regular subjects.

Malacca -- The prize giving for the "To My Hometown Malacca, with Love" drawing contest was held at a cocktail party which was attended by the top ten finalists and their families. The first prize was won by 12 year old Yow Wei Teng form the SRK Infant Jesus Convent Malacca. . . . A recycling campaign was launched with the Community Care Committee collecting goods for the Salvation Army and other charitable organisations. Associates have donated clothes, shoes, books etc.

Vancouver -- Over 50 associates represented the hotel at the annual 24 hour running relay raising over $8,500 for the B.C. Lions Society for Children with Disabilities.

Kuala Lumpur -- Hotel associates are currently raising funds for the Asia Region association of Parkinsons disease by participating in the annual walkathon-jogathon in November.

Kota Kinabalu -- 75 associates participated in the Queens' Baton Run through Kota Kinabalu which started in Tawau on the west coast of Sabah to Kota Kinabalu.The run will proceed to Sarawak before moving to West Malaysia to be in Kuala Lumpur for the opening of the Commonwealth Games in September. . . . Associates from the hotel participated on the Sabah International Hotels Association Telematch.

Glenmarie -- The hotel co-sponsored the KL Mutual Funds/New Straits Times Future-Grads Contest in aid of educational projects. The hotel sponsored 12 rooms for two nights for the finalists (11 years old) from all over Malaysia and return transfers to the Subang Parade shopping complex where the competition was held.

CONSERVING FOR THE FUTURE

Yokohama -- The Environmental Committee is made up of 9 representatives from various departments. The main task of the group is to keep the environment clean and organised a project to keep the Minato-Mirai area clean.

TOKYU CORPORATION VIEWS

What is a brand image of Le Meridien Grand Pacific Tokyo like?

The hottest of the latest hot spots in Tokyo is located on a manmade island in Tokyo Bay. Known as Daiba, this northwest area of the island provides a picturesque perspective of Rainbow Bridge connecting the island to Tokyo. Emerging beyond the bridge, the panoramic view from Daiba extends to the spectacular Tokyo skyline of high rise office towers, they in turn crowned by the 333-meter tall Tokyo Tower.

Readily accessible, the island can be reached within just 15 minutes from Ginza by train, or the Haneda Airport by car. Narita Airport is an easy 50-minute drive away. The island's many amenities drew Fuji Television to relocate its Headquarter facilities to Daiba, the resulting structure sensational for its remarkable architecture. Fuji Television's subsequent programs have provided national exposure to Daiba, and the area has become recognizable throughout Japan though many viewers may not be sure of its exact location.

Daiba welcomed another newcomer to its shores; Le Meridien Grand Pacific Tokyo celebrated its Grand Opening in Daiba on 1 June 1998. The 30-story hotel complex houses 884 guestrooms, 12 restaurants and bars, 18 meeting and banquet rooms, and parking facilities. A Tokyu Corporation competitor, Keihin Electric Express Railway Co., Ltd., operates the hotel through one of its group companies as a franchisee of Le Meridien Hotels and Resorts. This latest addition to Daiba has been well received. Designed and operated as a French hotel, it provides its patrons a reflection of Paris.

Le Meridien Grand Pacific Tokyo demonstrates that a straightforward, readily recognized image can be a marketable concept. The hotel advertisements keynote that the Le Meridien, located on the beautiful island waterfront of Daiba in the Bay of Tokyo, Japan is the newest Parisian "Arrondissement", the "21st Arrondissement", to complement the original 20 districts of Paris. The hotel chain itself, Le Meridien, may be unfamiliar to the public but Paris, whether visited or not, is universally recognized. Taking that one simple fact, the hotel portrays "Paris" to the populace. This perception exists even without an actual visit to the hotel.

This envision of the hotel is confirmed in a guest's mind upon entry. This is French. This could be in France. It could be Paris. The main lobby with its warm white columns of marble, the extensive use of luxury fabrics and bright crystal chandeliers provides an elegant and inviting ambiance reminiscent of a living room in a stately European residence. The "Esprit de Paris" theme is carried throughout the hotel. A "Deluxe Twin Room" for example, available rack rate for JY37000, is a room 42m2 furnished with elegant chandeliers, the two beds draped in sumptuous French blue fabric, attractive wood television stand and desk. Electric outlets are conveniently designed to accommodate both Japanese and European appliances.

The hotel offered a special 50% discounted rate on all guestrooms during the first 47-day period following opening. More than 70% of available rooms were pre-sold prior to the Grand Opening. The expectant guests anticipated experiencing European hospitality in a European atmosphere at a reasonable rate.

Le Meridien group has developed more than 90 hotels throughout the world. The connotation of European cordiality and French grace represented at Le Meridien Grand Pacific Tokyo has conveyed the same perception to the hotel chain as a whole. The simple and clear message of "21st arrondissement of Paris" has been well understood and received. A recognized trademark of a hotel creates a loyal following, and a traveller to another city would choose the same hotel brand by preference.

There is always something good to learn in a hotel you visit.

Overseas Division

Tokyu Corporation

(Fax: 813-3496-6773, E-mail: mt01-tkk@t3.rim.or.jp)