In October, we spent time with hotel representatives discussing the budgets. Following are some of my observations on some of the budget reviews.

A. The Pan Pacific Sonargaon Dhaka - EJ MacEwan and his team presented their plans with full audio and visual effects. I am pleased to see the team showing confidence in spite of the problems that the hotel is facing, the floods and regular strikes that the city faces. The message is clear, regardless of the situation, the hotel is moving ahead.

B. Palau Pacific Resort - Y. Uemura and Kamaluddin showed a clear picture of the business and future direction of the resort.

C. The Pan Pacific San Francisco - The hotel achieved their highest room rate of US$236 in October. This is a result of revenue management culture that is in the hotel for the last few years.

D. The Pan Pacific Hotel Vancouver - The hotel regained its 5 diamond status, creating a best hotel mentality in town. However, the new developments around the Waterfront may create many challenges for us in the future. We cannot afford to be complacent.

E. The Pan Pacific Hotel Yokohama - The hotel played host to the Japanese Royal family, the Crown Prince and Princess stayed in the Presidential Suite and enjoyed coffee and desserts at Cafe Tosca.

F. The Pan Pacific Lodge Whistler - This hotel has experienced one year operations, I discussed with Desmond and received a clear message. We need to consider each hotel individually as well as part of a group. Some elements of our plans will need to address individual hotel needs to better support that hotel. In Whistler, all 42 associates are sales and guest service agents. Small hotel companies must be flexible and have open systems which big hotel companies cannot have.

We discussed the future functions of this office with team members in San Francisco and Singapore. Firstly, we need to encourage all team members who visit San Francisco to also pay a visit to this office as well. There needs to be more awareness of this office and the role it plays in our company.

Don Dickhens is the new Senior Vice President for Business Development and Pan Pacific ambassador to the industry and community. Shig Onuma is the coordinator between Singapore and San Francisco and person in charge of Tokyu and owners issues. Yolanda provides assistance to hotels relating to finance and human resources issues. Maria Dempsey and Michelle Mariano provide sales and marketing support to the North American hotels in addition to their regional sales responsibilities.

I believe the best way of learning is teaching. In the last two months, this has been practiced between Singapore and Johor Bahru where Lyndall De Marco helped to recreate an exciting atmosphere for the associates. We also encouraged the managers from Singapore to participate and help their counterparts.

Several managers from Singapore, including Anne Tan, Ramli, Kenny, Steven etc went to help but in the process may have learnt more than they taught. This kind of clustering and joint work ensured that both hotels have a better understanding and allowed many associates to gain new experiences. I would encourage and promote similar activities to all other hotels as well.

In Asia, a mood of uncertainties covers the region. The gloomy atmosphere covers almost all countries. However, we see some of our hotels creating excitement in their location whilst other mirror the depression. What is the difference?

The difference is the attitude and culture of our associates, this translates into the attitude and atmosphere of the hotel environment. All hotel guests want to stay in a place with a good atmosphere, a place which oozes excitement.

The "No Regrets" policy should be a part of this culture, and only those with a positive attitude can make this policy work. Those with a positive attitude will see the benefits that can be derived from this policy and those who have a negative attitude will only see the downside. We must think of increasing the volume of business to our hotels and not of just increasing our average room rate.

A few years ago, we emphasized placing importance to the team rather than the individual. This resulted in the elimination of many recognition programmes or awards. Now is the time to reevaluate and create a balance of importance between the two.

In the current difficult business circumstances , each frontline associates make the difference . If so, as a tool of thank you from the management, I suggest that all hotels consider implementing a thank you campaign for your associates.

In today's competitive world, it's becoming more and more difficult to meet the changing needs of our valued guests and bookers. Today's guest are very demanding and does not mind changing from one brand to another. What keeps him/her loyal to a specific property is a combination of reasons, but it's becoming apparent that the primary decision is based on a property's flexibility to meet his/her needs and/or "what type of perks are available?".

Yesterday's guest did not mind calling several hotels in a chain to book reservations for several properties, and repeat his/her requests. However, this has changed. Today, the same guest is more demanding and would like to call one number, book all of his/her requirements and only mention what is required. The same guest, when returning to a property or a sister property in the chain, expects the property to know his needs and honor his/her previous requests.

Yesterday's guest was looking at the discount and service/amenities in the guest's room. Today, he/she is also looking at "what other perks is in it for me?". According to Michael Olsen, Professor of Virginia Tech's Department of Hospitality and Tourism Management, "Guests today are more "fleeting" and his/her brand loyalty is to the highest bidder!" This means that the brand loyalty is for sale. As a results we have seen Frequent Flyer programmes become much more sophisticated and even combining with other programmes.

To assist our Associates in servicing the needs of our guests, PPHR searched for new systems in 1997. As a company, we selected Fidelio-Opera Products, based on what the system provided for Corporate and our Properties. This system consists of a Central Reservations/Customer Information System, Property Management System, and Engineering Systems. Through the efforts of Alison Heraty and our Central Reservation team, the Fidelio Central Reservations and Customer Information System was recently installed in our corporate office in Singapore.

When the individual property installs the Fidelio PMS, it will automatically link to our Central Systems for reservations processing and accessing our Company-wide Guest History System. Other obvious advantages to an internal central reservations system are: generally higher average rate and higher turnover of calls: It is a known fact that Central Reservations Offices generally close the deal at a higher rate and the percentage of converted calls (calls to reservations) is higher than on a property level.

Automatic 2-way interface and eventually full integration, thereby eliminating the need to re-input information into the PMS. The Hotel's availability are automatically updated to the PMS.

Information on Guest Reservations: The information entered for the guest reservations are rather extensive and the beauty of it all, is that all information entered on the CRS reservations are automatically updated to the Fidelio PMS. No manual interventions are required! This will assist the Front Office in checking-in the guest more efficiently and faster.

Cost of the central reservations transaction will eventually decrease with volume. This decrease in cost will be passed on to the property.

Besides this integration between Corporate Systems and the property, there are various other advantages to the Fidelio Property Management System, which our present PMS lacks. Some of these major differences are as follows:

Fidelio "Profiles" and attachment capability: Unlike any other Property Management System, we are able to create different types of Profiles (Guest, Company, Travel Agent, and Source). These profiles are our "permanent" records for the particular accounts. You can then attach different profiles to each other or rate codes depending on what is required. This minimizes the amount of mistakes (wrong rates, etc.) when making a future reservations, etc.

Rate Management: Unlike CLS, the Fidelio PMS has an automated Rate Management System. This enables the property to automatically cut-off rates and/or packages during peak season periods. Under proper supervision and Management involvement, Chain Hotels have reported an increase of revenue of about 2 - 3%.

Processing of Reservations, Check-in and Check-out: On an average account, the number of keystrokes required to complete the processing of a reservations, check-in or check-out is approximately 20% less. This is due to the number screen accesses required on the CLS PMS.

Flexible Package Plan System: The Fidelio PMS has the capability of creating "add-on" elements, which would allow the hotel to customize a package for individual guest.

Guest Folio: We're able to create a maximum of 4 folio's per guest, under the same account number. Transferring transactions from one folio to another is easily accomplished by highlighting the transaction and moving it to another folio. There is no messy "transfer to" and "transfer from" on the guest's folio.

Frequent Flyer Programme: CLS has a very simple frequent flyer programme but getting information or reporting (via data files) are cumbersome or not possible. The Fidelio PMS has the capability of creating export files for various airline programmes. This eliminates the need for any manual interventions.

Pre-printed forms management: Unlike CLS, Fidelio uses a standard A4 paper with logo for all room division forms. This eliminates the need to order the various forms in the rooms division.

Engineering Management System: This system allows any user to input work order requests for a specific room, which is automatically forwarded to the respective department. This automatically updates the PMS and when the work order is completed, the EMS updates the respective room in the PMS.

These are some of the major benefits of the Fidelio PMS.

To date, installed properties include Malacca, Manila, Sutera Harbour (Kota Kinabalu) and Manila. Our properties in Vancouver and San Francisco will be installing this system late this year or early next year and other properties in 1999 and year 2000.

We are positive that Fidelio-Opera will be able to keep Pan Pacific very competitive in the next millennium. Can your property afford not to convert in the near future?

For those hotels that has converted, let's remember that the system is not on auto-pilot, but it has to be managed, not only by the individual department managers, but also by the Steering Committee and General Manager. It is not only during the setup/installation period, but more importantly on an on-going basis. Without proper management, we're not able to take advantage of the system's capabilities.

You have heard about it, you've seen newspaper articles about it, AND you'll probably hear a lot more about it in 1999. If not prepared, this inevitable bug will become a reality 13 months from now! On December 31st, 1999, when the clock ticks 12:00 midnight, systems all over the world could be affected by either freezing or date changed to January 1, 1900 or January 1, 1980.

What is causing this?? This problem is cause by software algorithm created 20-30 years ago, which calculates the date (dd/mm/yy). At that time, programming was much more rigid and cumbersome so creating a programme which could calculate beyond Year 2000 was very difficult. Programmers then thought "Year 2000 is a long time away! Let's not worry about it as someone else will re-write this before the year 2000". Unfortunately, this software algorithm is still embedded within your hardware and/or software. Oops!

Does this Y2K bug only affect only computers: Primarily yes, but today computers chips are virtually everywhere, so it can/does affect certain elevators, air-conditioning units, etc.

Your Corporate Office, each hotel and Owners are very much aware of this bug and has made provisions to ensure that this problem does not happen within our properties. Earlier this year, each property has conducted an extensive study in each area of the hotel, and has made necessary provisions to upgrade or replace systems. It is our objective to have all properties compliant by the 2nd quarter, 1999.

The positive side of Y2K is that most properties will have to change or update system(s) which is considered to be most state of the art. We are moving into a full Microsoft Windows based environment. Besides being Y2K compliant, we will have systems which are easier to learn and use, make us more productive and efficient and save the company money.

With these new or upgrade systems in place, we are able to celebrate the turn of the century rather than worry about what will happen at 12:00 midnight!

Palau Pacific Resort has always been looked up too by the Palauan community as the "perfect" example in every way. It is a reputation that both the associates and managers of PPR have taken seriously and tries to live up to through education and taking the lead in organizing various projects.

One such project is the "Pick-Up Club", where every month associates and managers volunteer half a day to pick up trash in and around the resort. The goal is to educate the associates in taking pride and ownership of the resort, the community, and Palau as a whole by keeping it clean.

Another is the "Beautification Program", where again associates and managers, once a month, volunteer their time to make the resort beautiful for the guests. Activities so far included: a) going to the rock island by boat to collect coconut trees; b) driving off road to neighboring islands to collect wild plants and flowers; c) going into the jungles for wild bushes (only to be stung by wild bees). Such activities not only have made the resort beautiful but we have received a lot of positive comments for local patrons, as well as, our international guests.

In honoring this year's theme, "The Year of The Ocean", associates and manager volunteers spear-headed two activities. The first being the "Coastal/Beach Clean-Up", which involved the community around the resort to clean it's coastal sides and beaches. The second is the "Giant Clam Planting", which involved hotel guests planting baby giant clams right at the resort's beachfront.

Another is the "Tourism Awareness Week" being organized by Palau Visitors Authority with this year's theme of "Sustainable Tourism Development: For you, for me, for Palau". Again, Palau Pacific Resort has taken the lead in being the only private company with the most associates and managers participating in the various programs. We have associates in the "Out Reach" program to visit 14 of our 16 States to speak to students. We have associates to participate in the November 15th walkathon, and an associate to be the host of the November 19th Challenge Bowl.

Team work, better community support, sustainable clean environment for guests and value for price are the key elements for our survival at this stage of serious Global economic recession and environmental crisis. All the activities are designed for sustainable tourism and environment and provide our guests an unspoiled, clean, beautiful, and pleasing environment blended with best quality of service and product to bring ultimate business excellence. Such activities and many more to come could not have been accomplished without the full cooperation and team spirit of all the associates and managers. Everyone deserves a big pat on the back!

Submitted by

The Awesome Team at Palau Pacific Resort

Bangkok -- A three hour session on "How to handle disciplinary action" was attended by 48 associates . . . 207 associates from various departments attended a class conducted by well known monks on "How to apply the religious lesson to use in working life". . .A two-day performance appraisals workshop involved 16 managers and 24 supervisors. This was to help them understand the concept of performance management in relation to Pan Pacific's values. . . 17 associates attended a total quality management classroom training whilst 7 associates attended First Aid workshop.

Glenmarie -- Team Leaders & Asst. Managers from all depts. attended a one day course on "Improving Communication" conducted by Lingam. . . All associates participated in the launch of "Committed to Service Standards & You" Campaign at the Ballroom. They witnessed the unveiling of the campaign logo by GM John Malins. The campaign stresses on the importance of maintaining, improving & exceeding service standards. With so much competition & during the current economy downturn, we have to strive to achieve the very best which would only benefit all parties in return..The afternoon event also saw the 10 Service Champion nominees receiving a token each. Birthday Babies for the month of Sept - Dec '98 were celebrated with a cake cutting ceremony followed by light snacks & refreshment. . . "Footballers" from various departments participated in an Inter-departmental Soccer Tournament 1998 held at the Rubber Research Inst.

San Francisco -- Because October was the best month in the history of the hotel, the associates were treated to "WOW DAY" where a special luncheon featuring prime rib of beef was served and 5 minute massages were given in Cafe 500. The overnight associates were treated to the same menu and also received movie gift certificates.

Malacca -- An associate gathering was held to celebrate November and December birthday babies as well to update everyone on current hotel happenings. Each birthday baby will received a birthday mug as gift. Certificates for CPR Course was given out to participants. The achiever for highest up selling for beverages were also announced. . . CPR / First aid training has been extended to 23 frontline associates for a 2 hour session. The educator was Dr Tan Kim Hock, an anaesrthetist from Southern Hospital. . . Conversational English class is held once a week for frontline associates..

Vancouver -- 450 associates will attend Emergency & Safety training in November which includes what to do in case of violence in the work place as well as a fire extinguisher exercise. . . All associates were offered the opportunity to receive a flu shot which attacks many people in the winter months.

KLIA -- All IBU associates underwent a full day training programme on food handling conducted by an external trainer from Guan Institute. Emphasis is on personal hygiene and correct food handling procedures. . . The IBU incentive scheme was introduced on trial basis with about 20% of the managers and associates involved in the scheme. . . The Round Table of Talent for team leaders will be held in December to groom associates towards performance excellence and focusing on leadership skills. This will involve a 2 night stay in for all participants. . . All associates will attend full day training on fire, safety and health training. . . Managers will be evaluated in a 360 degree process by colleagues will be able to provide feedback on them.

Yokohama -- The hotel's first newsletter named "Absolute Care" will be launched soon. The project team of the newsletter hopes its concept to be "Crazy". Many of the properties have already been contacted by the training team of Yokohama to contribute articles. The team appreciates the support from many sister properties. They hope to obtain as much information as possible, so that PPHY's associates and partners can understand more about the sister properties. It will be in Japanese and each property will receive the first copy by early January.

Johor Bahru -- In appreciation of the associates' hard work and dedication over the past year, an Associates' Appreciation Day was held with Steering Committee and Board Of Operations members cooking, serving and cleaning up at both lunch and dinner. The department heads cooked a delicious spread including Rojak, Yong Tau Fu, Roti John, Prawn Sambal, Deviled Chicken Curry, Ice Kacang and Waffles With Ice Cream. Lunch-time entertainment was provided with a Karaoke corner while at dinner, the Lobby Lounge band performed for an hour. The associates truly enjoyed the pampering. . . Banquet Operations Manager, Farid Imran, conducted banquet training for volunteers from all departments to prepare them for upcoming large functions. . . Director Of Education Innovation, Khalid Mat Din, and Education Officer, Monica Fernandez, attended a one-day course on the Human Resource Development Fund in Kuala Lumpur. The workshop gave them greater understanding of how the fund works and how the hotel can use the fund to its best advantage.

Manila -- The Make-It-Happen afternoon was another opportunity to honor associates who have been with the Hotel for a year by awarding them the 1-year service pins.

Kuala Lumpur -- Butler Training has been started with the forthcoming implementation of Pacific Floor Butlers, room service and housekeeping associates have been undergoing cross exposures in housekeeping, room service, laundry and front office. This is to ensure that our associates are familiar with their new roles to be multi-skilled. . .Telemarketing Training was held to ensure all departments conduct telemarketing to boost sales for November 1998 to January 1999. . . Associates attended Basic Japanese language classes to equip them with conversational Japanese skills. . . Bullet Proof Managers Series -equips managers with knowledge in handling conflicts and effective presentation skills. . . Front Line Associates attended Malaysia Host - Frontliners to teach associates to be courteous when dealing with guests. . . Basic Word Lotus Skills was taught. . . Norah Nongchik and Mohd Fadzli attended the Diploma in Hotel Management - F&B Promotions. . . Team Leader in Action 1 was held to enhance associates" knowledge and skills in leadership and communications. . . Grooming classes was held.

Palau -- On November 11th, 20 associates and managers picked up trash in Ngerkebesang, PPR's surrounding community. This was followed by a clean-up of the resort.

Pangkor -- A full fire evacuation exercise was held in November where over 100 associates worked with the Perak fire fighting authorities. Guests also participated.

Whistler -- There is an opportunity for associates to join the Whistler team as a Guest Service Associates. This is a multi functional position responsible for all duties such as front desk, concierge, Service One and bell desk. The team at Whistler is a small, close knit group that enjoys the work and lifestyle there. Interested associates can contact Ryan Sauve at Tel (1-604)905 2999, Fax (1-604)905 2995 or e-mail : whistler@panpacific-hotel.com. . . All associates have undergone training to hone their skills in all aspects of their duties. The team leaders are responsible for the training and expect to improve the quality and consistency of the frontline team.

Kota Kinabalu -- Donna Webster conducted a pre-budget seminar on Edward de Bono's "Six Thinking Hats" principles to encourage creative and constructive thinking from managers and directors. . . Freddie Coleman (People Innovation Manager) presented the "Sports and Recreations" curriculum for Sabah state trainers. The hotel and the Nexus Golf Resort jointly developed this programme. . . The team was requested to deliver a one-day customer service programme in Kundasan (Mt. Kinabalu). This request came from the Ministry of Culture, Arts and Tourism as the hotel is active in education areas of Malaysia Host, Sabah International Hotels Association and BPSM activities. The programme was structured from a traditional lecture format to a more constructive workshop style and feedback from attendees showed that it was a great success.

Mauna Lani -- The executive committee went on a retreat to the top of Mauna Kea for a special ceremony with historian Danny Akaka and then to the volcano for team building activities. . . The "Ohana Time", a weekly newsletter to all departments to review on a daily basis is a part of the standard of the week training programme. . . A pumpkin carving contest was held with the winners - Grounds for the Most departmental spirit ; Accounts for Most Creative and Security for the Best Carved.

Singapore -- The annual Associates Recognition Night was recently held to recognize all associates hard work and service to the hotel. The highlight was the awards presentation for associates who have served three, five and ten years; those who did not take medical leave for a year and security officers for keeping the hotel crime free. . . The two winners of the "WOW" for October were Ms Chua Wai Ling (All day dining) and Ms Wong Giap Nam (Housekeeping). . . Professor Michael Olsen from Virginia Polytechnic Institute and State University launched the Strategic Management Case Study videos on Pan Pacific Hotels and Resorts and The Pan Pacific Singapore. These videos on case study interviews conducted in Singapore and the region will be used during lectures and tutorials in Hospitality and Tourism management studies locally and worldwide. The interviews covered PPHR's strategic management policies, environmental scanning practices and competitive methods etc. The following day, Professor Olsen gave a talk to the hotel management team on the Forces Driving Change in the Global Hospitality Industry. . . To celebrate Deepavali for Indian associates, the associate dining room served Indian cuisine and the room was decorated for the festival.

Dhaka -- Training sessions included fire fighting and safety procedures for housekeeping; sanitation and hygiene for F&B; English language class (ILP) for front office, F&B and housekeeping; computer training for all departments; Spirit of Hospitality ; Team Leader monitoring class; English classes for orphans; Executive image for all; cost savings and suggestive selling for all, industrial attachment for Travel and Tourism Institute.

Malacca -- Mr Krishinasamy a/l Murugasan will be in Malacca as the Temporary IBU Chef at Saffron Casual Dining Restaurant for 3 months until February 1999.

Vancouver -- Kelly Murray, Team Leader of Housekeeping at the Whistler Lodge spent time with the Vancouver People Innovation team before assuming her new portfolio.

Johor Bahru -- Chef Koh Boon Seng from The Pan Pacific Glenmarie assisted for two weeks to help with buffet menus and other aspects.

Palau -- Loraine Kloulubak, Security Supervisor, is currently undergoing a month's cross-training in Front Office.

Kota Kinabalu -- Jonathan Badman has joined the Sutera Harbour Resort as Vice President-Business Development and Destination Marketing.

Glenmarie -- Marcia Nicholas joins as the new Director of Education / Innovation effective November. Marcia will be responsible for setting up the school and conducting English classes to all associates amongst others.

San Francisco -- Ann Mitchell has been promoted to Director of Conference Services. Ann started off as a banquet server in the hotel since the opening in 1987. She was promoted to Captain before moving to Conference services three years ago. . . Darin Sturgill, Asst. Reception Manager joins the hotel from Hotel Monaco where he was Director of VIP front office operations.

KLIA -- New team members include Kenneth Lim - Manager, Travellers Bar & Grill; Billy Tan - Manager Credit; Ahmad Bahari - Manager Security; Abd Harris bin Sali - Manager Revenue Audit.

Yokohama -- The newly formed Training and Education team which works together with Human Resources Department in a same office, will concentrate solely on Training and Education of associates. The enthusiastic team consists of Mr. Asami Takasawa, Director, Ms Akiko Tanaka and Ms Kanako Matsukawa, both assistants.

Vancouver -- David Currell has been promoted from Director of Rooms to Director of Operations. Ryan de Cormy joins the team as Y2K project manager, working on the installation of the new Fidelio system with Geoff Bartlett. Jil Larson returns to the hotel as the new Revenue Manager.

Pangkor -- Jessie Nerat is the new Executive Administrator, replacing Daisy Ong who left for the US to join her husband. . . . Nizam Ahmad is the new Asst. Recreation Manager.

- J.W.Marriott, Jr -

Malacca -- The Malacca Hotels' Association met at the hotel on the 5th November 1998 to discuss the upcoming MAHA Nite 98 which will be held at PPLHM on the 10th December 1998. . . The full-day Area General Managers meeting was attended by General Managers of Pan Pacific Hotels in Malaysia and Singapore and members of the corporate team. At the same time, a joint Malaysia business development team meeting was held for all Malaysian Business Development Directors as well as Directors from the Malaysia Sales Offices and Corporate Office.

Yokohama -- His Imperial Highness, The Crown Prince and Her Imperial Highness, The Crown Princess visited the hotel on November 6th and stayed in the Pan Pacific Suite (Presidential Suite) for one night. They attended the National Athletic Meet for Disabled the following day. They enjoyed a Chinese dinner prepared by Chef Wakiya of Turandot in their room and after dinner, tea and coffee in Cafe Tosca. Her Imperial Highness The Crown Princess was particularly pleased with aroma of Cafe Tosca's cappuccino. . . All the Christmas decorations went up in and around Queen's Square Yokohama area. The Queen's Square Yokohama at Minato Mirai 21 is full of Christmas lights and a big singing Christmas tree. . .Our Christmas tree with 95 poinsettia pots went up on the first floor at the hotel. Lots of charity gifts are displayed under the tree. As our concept for Christmas; "Stars and Dreams", a planetarium atmosphere with sound and music on the ceiling of the lobby floor will be created. . . 300 handicapped guests stayed at the hotel to participate in the National Athletic Meet for Disabled at the end of October. For blind people, signs in braille were set inside the hotel. . . In November 2nd issue of the very well-known business magazine, "Weekly Diamond" surveyed all the hotels in Japan. The hotel came in 6th in the Banquet Division compliments on wedding business and services.(Last year 27th position). . . JTB, the major Japanese travel agency, made a survey among those who stayed, rating all the hotels in Japan. The Pan Pacific Hotel Yokohama was rated 90 points for synthetic rating, which is higher than competitor, Yokohama Grand Inter Continental Hotel: 85 and Yokohama Royal Park Hotel Nikko: 89. The average point was 79 and our rate, 90 points will be included in the top 5% of all the hotels.

KLIA -- To improve bilateral relationship between both Malaysia and Singapore, Prime Ministers Datuk Seri Dr Mahathir Mohamad and Goh Chok Tong met for two hours at the KL International Airport. The press conference was held at the hotel followed by lunch in a function room. GM Lloyd Daser escorted both Prime Ministers from the ballroom Porte cochere to the meeting room. They also signed in the hotel's VIP book. . . The Sultan of Brunei's brother, His Royal Highness Mohammed Bolkiah and his family stayed at the hotel. . . The Queen of Belgium lunched in the hotel. She was accompanied by Datin Sri Dr Siti Hasmah, wife to the Prime Minister.

Johor Bahru -- The hotel presented a special cake to the Menteri Besar, Y.A.B. Dato' Haji Abdul Ghani bin Othman, for his birthday recently. The cake was a replica of a badminton court with players on it. Badminton is one of the Chief Minister's favourite sports. . . Popular Malaysian singer, Ziana Zain, made The Puteri Pan Pacific her home away from home when she performed at a concert in Johor Bahru recently.

San Francisco -- Quick thinking on the part of one associate saved the life of a guest who suffered a heart attack while having a snack at the Bar. Steve Goddeau (bartender) notified Security and then he and Ladis Prostredny (Outlet Manager) tried to revive the guest. The guest was transported to the hospital by paramedics, family members were notified and Danile Per (Reception Manager) stayed with the guest in the hospital under family members arrived. Other associates who assisted included Day Gonzalez (Security Officer), Alice Smith and Darren Nakatani (both Engineers). . . Celebrity guests included Kensaku Morita (former actor, now Japanese counselor to the house), Koichi Kawasaki and Toshio Kudou (staff members of Japanese consulate) James Irsay (owner of the Indianapolis Colts NFL football team, Joan Lundgren (TC personality), B-52's (band), Dianne von Furstenburg (women's clothing designer).

Dhaka -- Amongst the VIP functions held in the hotel were the World Bank reception, the Annual General Meeting of Beximco and Americna Express Bank's Dinner & Dance.

Pangkor -- The resort successfully staged the Soccer 7s Tournament with teams from Australia, Japan, Vietnam and Malaysia. Guinness Asia Pacific Breweries sponsored the event with a RM25,000 advertising campaign, giving great exposure to the resort. This was the first Special Event at the resort's oval which was conceived by ex-General Manager Christo Diaman and generated 130 room nights. Future events planned for 1999 includes softball. Touch ball, etc.

Manila -- Andrew McBurnie (General Manager) ; Jack Tuason (Dir. of Operations) and Ping Valencia (Marketing & PR Consultant) and the Butlers of the hotel were the highlights of the famed Oh No! It's Johnny Show in the Philippine top rating television station,ABS-CBN channel 2. The Pan Pacific Manila was featured throughout the show. Exhibit entitled "Songs from Pundaquit" was recently launched in cooperation with Elite Dineplex.

Vancouver -- The team is celebrating their success in regaining the 5th Diamond status with an associates reception where five lucky associates names who were drawn received a 1/4 carat diamond each. There are only about 60 hotels out of the 36,000 in Mexico, United States and Canada who achieve this status. . . VIP guests included James Carville, Chief Spin Doctor of President Clinton and Lloyd Robertson, renowned Canadian television news anchor. . . Ten associates attended the Where Magazine Breakfast Awards honouring employees in the hospitality tourism industry who have been recognised by visitors and guests. Congratulations to Colin Hedderson (Relief Night Manager) who was the winner and Sharon Gabenet (Cascades Lounge) who was also nominated. . . The Five Sails received the Best Fine Dining/Most Memorable Meal Award voted by visitors to Vancouver by the months on June to August. The restaurant also received the coveted Five Diamond Award from the American Automobile Association for the 4th consecutive year. . . Executive Chef Ernst Dorfler and Sous Chefs Michael Brough and Bob Wiles were invited to present a Canadian Food Festival at the Leading Hotel of the world, the Montreax Palace in Switzerland.

Kuala Lumpur -- The hotel came up tops at the recent World Golden Chef Competition "98 held at the Putra World Trade Centre. Lui Pak Thiam, Executive Chinese Chef of Hai Tien Lo, won the Special Gold Award medal and trophy under the Hot Dish category. His winning dishes included Pan Fried Lamb Chop in Chef Lui"s Special Sauce- and Return of the Birds in Spring-. Under the Chinese Dian Xin (Desserts) category, Dim Sum Chef, Chong Cheng Yin, won the Silver medal and trophy. His winning presentations consisted of Peony Flower- and Village Kampong Chicken-. This international competition is a bi-annual affair aiming to promote the standard of Chinese cuisine and contribute towards the building of culinary skills of professional and international Chinese chefs. Participants were judged in two categories, the Hot Dish and the Chinese Dian Xin (Desserts). The winners were awarded cash prizes, Special Gold, Gold, Silver and Bronze medals, as well as the Chinese Cuisine Spectacular trophies.

Bangkok -- The Hai Tien Lo won the first runner-up award for Bangkok's Best Chinese Restaurant award at an award ceremony at the Dusit Thani. The restaurant was nominated by the readers of Bangkok Dining & Entertainment magazine.

Singapore -- The Prime Minster of New Zealand, Jenny Shipley stayed at the hotel during he two day official visit to Singapore on invitation by prime Minister Goh Chok Tong. Deputy Prime Minister and Defense Minister Dr Tony Tan visited her at the hotel to discuss air defense agreement. A joint breakfast meeting was organised by the New Zealand Singapore Business Council and Singapore Regional Managers' Club (South east Asia Business Group) was attended by ambassadors from Chile, Switzerland, Bangladesh, Mexico, Japan, China, Czech Republic, Sri Lanka , Maldives, Seychelles and Slovenia. Her visit was significant as Singapore was ranked the 7th largest foreign investor in New Zealand this year with an investment of S$30.5 million.

Malacca -- The Legacy Team has generously contributed to the fund set up for Erzin, a team professional from Room stay services who needs RM30 000 to finance a hole in the heart surgery for his 3 2 year old daughter, Nadia.

Johor Bahru -- "Leadership by example" that's the battle cry of the department heads as they go down on their hands and knees to clean up the hotel once every week. During these clean-up sessions, the department heads, led by Lyndall De Marco, clean drains, dig under cupboards, clean stoves, wash pots and pans and tidy up the restaurants and kitchens. And what a difference this effort has made!

Kuala Lumpur -- The team held a Deepavali celebration on Nov. 4, 1998 at the Pan Cafe. A variety of Indian dishes were served and a host of entertainment lined up. GM Christo Diamandopoulos officiated the event with the lighting of lights. . . The hotel hosted a Family Day at the TPCA stadium. Family members joined in the fun-filled event with food, games and competitions. Prizes for the various games were given out. The event was officiated by GM Christo Diamandopoulos with the release of balloons.

KLIA --In line with our values, 3-care committee have been formed, Colleague Care, Guest Care and Community Care. They will carry out activities in line with the Pan Pacific values.

Palau -- Congratulations to Robinson Skiwo for winning Employee of the Month of October.

Pangkor -- Shirllay Chong (Manager, people Innovation) in conjunction with GM William McNamara organised a team professionals motivational, bench marking excursion to Langkawi which covered 6 major hotels. The short and long term goals were also discussed, the resorts' motto for 1999 is Go For No. 1.

Kota Kinabalu -- 20 associates came to the aid of the sister of an associate (store & receiving) who require 15 pints of blood for an emergency surgery for a bleeding ulcer. . . The people innovation team arranged a special remembrance day for the pioneer team. . . Year end performance appraisals were conducted recently.

San Francisco -- David Corpus (GRS) presented a clean shirt from his own locker to a guest who had commented that he had forgotten to pack an undershirt. The guest was pleased at the exceptional service.

Kota Kinabalu -- The hotel hosted 32 buyers and 4 journalists from ITC&MA who participated on the Post conference tour of Sabah. They were overwhelmed by the incentive theme set up pn "Monsopoid-Warriors Night" during the farewell function hosted by the hotel, The Magellan Sutera Hotel and Malaysian Tourism held at The Pan Pacific Sutera. . . GM Thomas Mueller, the Wild Man of Borneo has set up his desk in the hotel lobby for easier access by guests. This was well received by guests.

Vancouver -- Gail Chapelsky (Front office manager) is responsible for setting up the new Service One department which combines the Communication Centre operators and Room Service order takers.

* * * * * * * * *

Malacca -- The Silk Specialty Restaurant is promoting their Family Set Meal at RM32.00nett per person. Children eat at half-price. The meal also includes standard pouring tea for guests. . . The Saffron Casual Dining Restaurant's Unlimited Feast is gaining popularity with the local community. Priced at RM19.00nett for lunch and RM26.00nett for dinner, the partially served buffet offers a spread of over 50 sumptuous dishes for guests.

Johor Bahru -- The Hai Tien Lo is offering unlimited dim sum at RM18.80 nett. Guests can choose from over 30 types of delectable dim sum. This promotion is available daily for lunch on weekdays only till January 31st, 1998.

Manila -- Adriatico Square, the restaurant podium, launched the grand opening celebration of China House. Guests included top government, business and media personalities. The former First Lady Mrs. Imelda Marcos was also there to grace the affair. New outlets are now operational namely Pub Hime- Japanese Wine Bar, Confiserie-bakeshop and Casa Blanca- Karaoke bar.

Kuala Lumpur -- Spend RM300 and Stay One Night For Free, is valid from Nov. 1 to Dec.31, 1998. This is applicable to all guests who spend a minimum of RM300 in a single bill when dining at Keyaki, Hai Tien Lo and Selera, and it cannot be accumulated. The single bill is not applicable to any form of discounts and the promotion is not valid on Christmas Eve, Christmas Day and New Year"s Eve. . . In conjunction with the school holidays, Selera Restaurant"s is offering a pay for 9 and get 1 for free for its weekly high tea. Targeting schools, high tea is very popular amongst schools organising year end function for a small group. This is valid from November to December.

Palau -- To entice the local market, the "Sunday Breakfast Special"buffet breakfast at a special price of $10.00 inclusive per person was extended from Oct. 31st to Dec. 15th 1998.

Pangkor -- The resort will be organising the X'mas New year Extravaganza with a fancy dress theme, featuring International Cabaret Entertainment from Australia highlighted by a Mardi Gras, fancy dress dinner party for New Year's eve. Bookings have been encouraging.

Glenmarie -- Maria Dempsey of PPHR- San Francisco led a US Fam group of 14 representatives from various corporate companies & travel agents visited the resort for site inspection and a night's stay.

Vancouver -- David Podmore, CEO of Greystone Developments explained at a General Staff meeting the development of the new Convention Centre and expansion of the Cruise Ship terminal over the next three years. He also brought the model of the new project as well as architectural renderings.

KLIA -- The Business Development team will do a month long promotion in the Satellite building of the KLIA involving a hospitality desk with associates handing out cookies and warm towels to passengers arriving or departing. In the evenings, a pianist will entertain travellers waiting for the flights. This is jointly sponsored by The PP Kuala Lumpur and special promotional rates are being promoted via a poster.

Whistler -- Both Whistler and Blackcomb mountains have opened early due to an unexpected early snowfall. Two World Cups will be held in Whistler in December, the Men's World Cup Downhill and Super G followed by the FIS Snowbird World Cup. . . Both Whistler and Vancouver will be pooling efforts n 1999 advertising by creating packages which include stays at both properties.

Malacca -- The Pan Pacific KL organised a trip to Malacca for their Explorer Club members. The group arrived at 11.00am for a site inspection followed by lunch at Saffron Casual Dining Restaurant. The group then went on a half-day tour around Historical Malacca followed by light refreshments at Saffron.

Kota Kinabalu -- The trial opening of The Magellan Sutera Hotel will be in February 1999 with a soft-opening scheduled for March 17, 1999 in conjunction with the 1st anniversary of The Pan Pacific Sutera. The opening will involve operation of about 200 rooms, all-day dining restaurant, Asian style restaurant, lobby lounge and the Sutera Harbour Convention & Exhibition Centre. . . The team declares 1999 as the Meetings and Conventions Year in conjunction with the opening of the Sutera Harbour Convention & Exhibition Centre. The objective is to globally promote the hotel and Sutera Harbour as the premier meetings and conventions destination in Borneo in preparation for Malaysia's AYear of Conventions in 2001. . . The "Loyalty Plus" programme has been designed for all reservations made at corporate and FIT rates only. As a recognition and reward programme, guests will earn points towards redemption of awards like free room vouchers, room upgrades and dining vouchers.

Yokohama -- A Sales Blitz was held for 2 days to promote the year-end package plan and Christmas dinner party on December 24th. 94 associates participated this blitz with 64 associates from other departments joining the Sales team.

Pangkor -- A Family package highlighting the Pandy Panda Kids Club will be available to the market soon. Paul Er (Dir. Of Business Development) and Geoff Napier (Recreation Manager) are negotiating to gain access to 25,000 members of The Pacific Bank's Kids Club for joint-marketing purposes. . . The Star Cruise contract to host about 500 passengers every Tuesday at the resort for the next 12 months has been signed. A reciprocal arrangement will also allow the resort's guests to visit the ship during the day visits, inclusive of an International Buffet Lunch. This would give the resort a potential revenue of RM250,000 per year.

Johor Bahru -- In an effort to boost wedding banquets in the hotel, all associates will now be given a commission of between 5 - 10% of the total revenue when they bring in a wedding function. The commission will be paid to the associate concerned upon full settlement of the bill; however, Sales & Marketing associates are not eligible for this scheme. . . The best meeting packages in Johor Bahru can be found at The Puteri Pan Pacific. A half day seminar is now available at only RM12 nett per person and a full day seminar is priced at RM22 nett per person. For this fantastic price, the package includes tea and coffee, meeting amenities including sweets and ice water, registration table, meeting set-up including meeting pads and pencils, whiteboard with markers and eraser set, and discounted parking rates for participants.

Mauna Lani -- The "Cuisines of the Sun" was nominated for the Best Catered Event produced by the catering department with results to the announced in January 1999. The Mauna Lani Resort golf course received the Gold Medal award as one of the best 18 golf resorts in North America. Mauna Lani was also rated as one of the top ten Tennis Resorts in the United States.

Kuala Lumpur -- Khairiah Mohd Ikwan and Yatie Tahir made a sales trip to Kota Kinabalu and Miri. Khairiah Mohd Ikwan also made a sales trip to Singapore. . . Ananth Ganesh and Mathew R attended Guerilla Selling- seminar at The Pan Pacific Hotel Kuala Lumpur. . .Site inspections were conducted for Middle East Agents organised by Mayflower Travel and Tours, US Corporate/Travel agents organised by RSO San Francisco. . . The team also hosted dinner for Avianca Airline Captains and Crew; UK Agents organised by Kuoni UK; lunch for Indian Travel Agents who attended IT&CMA ; co-hosted cocktail reception for British Post Graduate organised by the British Council. . . Yatie Tahir and Khairiah Ikhwan attended the Malaysian Arab Travel Exchange (MATE) 98 held at the Crown Princess Hotel. . . The hotel was one of the official hotels for IT&CMA held at the Putra World Trade Centre. The hotel participated in this trade show under the Diamond Triangle banner, as well as under Pan Pacific Hotels and Resorts. . . The sales and marketing team installed a Lucky Bell in the sales department. This is to encourage all sales colleagues to ring the bell for the number of rooms sold each day to create excitement and certainly increase confidence and morale in the sales department.

Singapore -- Fisher Rosemount conducted a high profile selling skills seminar for their sales team in Asia Pacific and also attended by the Senior Vice President of the company. . . The annual International ECDIS (Electronic Chart Display and Information System) Conference was held for the first time in Asia. . . The hotel hosted a Fam group led by Maria Dempsey for a group of senior travel managers from large multi-national corporations located in Silicon Valley. The group was given the full VIP treatment as the majority of the hotel's North American business which represents 15% of the total market comes from the IT industry in Silicon Valley.

Palau -- A Japanese Cable TV, "Shoku" catalogue by SKY Perfect TV, spent 6 nights at the resort taking shots of the property and it's outlets for their 30 minutes program that will run from Dec. 17, 1998 to Jan. 31, 1999. . .Mike Musto of Trip N Tour, the biggest U.S supplier, escorted a group of 19 pax, representing major U.S. dive shops, on a Fam Tour to Palau for 6 nights stay. . . Continental Airlines organized key persons from broadcasting companies on a Media Fam Tour to Palau to increase market share from Chubu, Japan.

Malaysia -- Chain vs. Independent - Hotels sporting names of international chains are common in Malaysia. While certain standards are associated with those worldwide chains, bearing an international branding helps when it comes to attracting frequent travelers who usually choose hotels they recognise. Hoteliers interviewed concur that hotels of worldwide chains are usually more easily marketed compared to independent hotels, with workings of a central reservation system, referrals from others in the network, onwards reservation recognitions and reward programmes . Still, independent hotels have their own mechanisms where they can buy into reservation systems like Leading Hotels in the World and Prima Hotels. They rely more on travel agents and the internal sales team. 60% of their guests can come from travel agents and the rest corporate clients.

Government service tax may be doubled - The Malaysian Government is considering doubling the service tax to increase revenue and for tourism promotion. However, there was no indication on when this would be enforced. Special Functions Minister, Tun Daim said that not enough was being done to promote Malaysia as a tourist destination, compared with Thailand and other neighbouring countries.

"We recognise that tourism is the engine of growth and more needs to be done to promote the sector in Malaysia" he said. The Malaysian Tourism Board, Malaysian Airlines and the respective states should streamline their promotional efforts instead of working independently.

Subang Airport set to become a world-class trade centre - Terminal One of the Sultan Bad Aziz Shah Airport in Subang is set to become a venue for international conferences and exhibitions. To be known as the Subang International Trade & Exhibition Centre (SITEC), it would be the largest venue for such activities in Asia.

SITEC is unique as the area within an 8km radius is a duty-free zone. It also has bigger space, including the apron, which can be utilised for airshows & exhibitions. The indoor space is the largest among all exhibition centres in Asia - 48,600 sq metres, while another 130,000 sq metres of outdoor space at the apron would be available for other activities. The first event will be held from Dec. 5 till 13, 1998, the Motorsport '98 exhibition.

STAR-LRT set to be fully operational - The 27km Star-LRT (light rail transit) system build over two phases, will be fully operational by early December. This was made possible with the completion of the northern route which connected the city centre to Sentul. The 3.2 km extension which stretches from the Sultan Ismail station to Bandar Baru Sentul via Jalan Tun Razak, is the final section of Phase Two of the Star-LRT project. There are four stations - PWTC (opposite The Pan Pacific Hotel Kuala Lumpur), Titiwangsa, Sentul and Sentul Timur - along the route.

Government help for tourism industry - The government will increase its allocation for the tourism industry to step up promotional activities and boost the industry. The moves to increase tourist arrivals will include increasing campaigns in the Arab countries and easier visa approvals for visitors from India and China.

Thailand -- To boost tourism in Thailand, the Amazing Thailand Grand Sales Promotion will run from mid November to mid December. . . A light and sound multimedia cultural show will be held in front of the Sala Sahathai Association in the Royal Palace to celebrate the 72nd birthday of His Majesty the King of Thailand. Celebrations will last from 15 Nov to 30 December.

Dhaka -- Valid only for local residents and expatriates, the Weekend Local Plus Package offers a deluxe room at US$65 (single/double) per night with check-in on Thursday/Friday/Saturday for a maximum of two night stays. This includes breakfast at Pacific Lounge and use of swimming pool and health club. . . "Shoppers Rate" for short term staying guests at deluxe room US$45 for up to 4 hours, US$55 up to 6 hours, US$65 over 6 hours. Check in and out between 7 a.m. to 9 p.m. , 7 days a week., inclusive of use of health club and swimming pool. . . "Value Plus Package" for long stay guests offer US$15++ per night per person for breakfast at Cafe Bazar or private dining and laundry/dry cleaning. All packages valid till Jan.31, 1999.

Malacca -- A STAY 3 PAY 2 PACKAGE@ offers on weekdays - RM 198nett per night. (min of 2 nights, 3rd night free) for a Superior Room inclusive of breakfast for 2; weekends - RM218nett per night (min of 2 nights, 3rd night free) for a Superior Room inclusive of breakfast for 2. Optional package of RM220nett per Superior Room per night includes breakfast for 2. Package valid until 30th June 1999.

Yokohama -- The Yokohama Bay Stars Package is being promoted at KEYAKI Japanese restaurant Pan Pacific hotels in Singapore, Glenmarie, Kuala Lumpur, Bangkok and Jakarta for Japanese residents living overseas. This is to celebrate Yokohama Bay Stars' baseball championship for the first time in the last 38 years. The package offers 46% discount on rack rate and this 46 came from the honored pitcher, Mr. Sasaki's saved point. * Executive Twin(Double/Single) at Yen45,000++/24,300++ *Valid till March 31, 1999, excluding December 20-25,31; January 1,2. . . The Winter Shopping package is valid from November 13, 1998 to December 30, 1998 excluding the period of December 20-25. The package offers * For Sunday-Fridays, Yen 29,000 (single/double), Saturday and eve of public holidays - Yen 38,000 including service charge; excluding tax. Benefits: *Choice of breakfast or lunch *Late check-out till 1:00 p.m. *5% discount coupon at Queen's East department store *Gift- Original Tea Leaf set and Queen's East original notebook *24 hours complimentary parking *Kids Square special discount .

Kuala Lumpur -- D.A. Package (Nov.1 to Dec.31, 1998) offers RM216 nett per room per night single/double, inclusive of buffet breakfast and free meal worth RM48 per day, non-accumulative. . .The School Holiday Special (Nov 20, 1998 to Jan 3, 199) priced at RM198 nett per room per night, single or double, inclusive of buffet breakfast, and children sharing same room as parents stay free.

Yokohama --. The annual Christmas Charity Gift Campaign so far sees 266 gifts donated by hotel associates. These gifts are for children at orphanages in the Yokohama and Kanagawa area. Last year, the team was successful in touching the lives of 850 children by being their Santa Claus. This year, our target is 2000. This news was aired through TV Kanagawa during lunch time and evening news broadcasts the same day. Also, an article was featured in The Asahi Newspaper, Mainichi Newspaper and Yomiuri newspaper.

Mauna Lani -- The American Breast Cancer Society sponsored a walk-a-thon to raise funds for breast cancer research an publicise the need for early detection. Malu Vega, an associates from GRS alone raised more than $300 for this worthy cause.

Johor Bahru -- Eighty orphans from the Darul Hanan home were 'adopted' by hotel associates for a day during the Family Day. Held at the Hutan Bandar Recreational Park Camp Site, the kids had an opportunity to enjoy a day of fun as part of the Pan Pacific family. They participated in outdoor games, a colouring contest and treasure hunt. They also visited the Children's Adventure Park nearby. They won lots of prizes, had a lot of fun and loved the food!

Manila-- General Manager Andrew McBurnie gave a talk on career preparation and career management to graduating students from St. Paul's College, College of the Holy Spirit and from the University of the Philippines, the leading state university. He addressed a total of 1,000 students. The talk was well received by both students and faculty members in all the schools. Through this activity, the team is able to meet and address the needs of our students to better prepare them in their chosen career.

Kuala Lumpur -- The hotel invited 20 charity organisations in Selangor and Federal Territory to participate in a Charity Carnival held on November 21, 1998. Representatives from these charity organisations attended a meeting (cum high tea) chaired by the hotel to discuss the event.

Dhaka -- The hotel held a reception in honour of the two finalists of the Wills International Cup Cricket - South Africa, the Champion and West Indies, runners-up. West Indies captain Brian Lara and South African captain Hansie Cronjie thanked the hotel for their warm hospitality. All nine teams participating in the event stayed at the hotel. . . The hotel was a sponsor at the Captains Cup Golf Tournament held at the Kurmitola Golf Club where 300 local and foreign dignitaries participated. The hotel sponsored the exclusive refreshments centre at the 9th hole.

Pangkor -- The "Kids for Kids Christmas Charity project was launched by GM Bill McNamara. The project includes a X'mas gift collection for 100 under privileged children in the Puchong estates and villages plus a Card Making contest where children are invited to make greeting cards for the less fortunate kids. 50 children with the most attractive cards will be invited to the Pandy Panda Kids Club children party at Star Hill Centre on 20 Dec.

Palau -- In line with this year's Tourism Awareness Week, 175 students from the four high schools in Koror visited the resort for tours. There was a lot of interest in the Palau Pacific Hotel School.

Kota Kinabalu -- The team coordinated the children activities for participants from the Kinabalu International School in conjunction with the "Environmental Awareness" exhibition in the hotel lobby.

History of Tokyu's International Hotels

Part 2

Before we continue with the history, as you might notice in spite of the fact that Pan Pacific Hotels and Resorts belong to Tokyu Corporation, the name Tokyu does not appear. The two domestic chains that are Tokyu Hotel Chain (THC) and Tokyu Inn Chain both carry the Tokyu name. We completely divided domestic hotels and overseas hotels on account of wanting to be a truly international hotel operation company. We thought that relying on the Japanese Market would act against us. And if we were to mention one more reason, it would be because securing a capable Japanese national hotelier was sad to say very difficult.

THI (Tokyu Hotels International) was established on March 30, 1972. This new company immediately took over from THC all assets and liabilities relative to TMDC, RHI, Sarinitokyu Hotel and Seoul Tokyu Hotel. They rented 2 units of an apartment building in Tokyo and converted it to an office space.

Relationship with THC and RHI was that RHI would manage those hotels THC developed overseas. But when THI was incorporated it became confusing. THI did not act as a pure owning company as THC did. It had the function of managing and operating hotels as well. There were now two companies with the same objective.

When THI was incorporated the management agreement of Guam, Seoul, Hawaiian Regent and Indra Regent was transferred to THI from RHI. That left RHI Fiji, Kuala Lumpur and Geneva, which they obtained through their own efforts. RHI opened its Tokyo office in the same department building with THI in November 1, 1972 to have closer communication. This was an indication that the communication between the two parties was not excellent.

There was a big transaction this year when THI bought over Hawaiian Regent from AITS (American International Tourist Service) Hawaii Inc. RHI had the management agreement dated March 24, 1972 and coordinated the sales of the property to Tokyu. When Tokyu acquired this property they established a company called THI Hawaii Inc. as the holding company.

At the directors meeting held on August 14, 1973 in Hawaii it was decided that THI transferred all its shares of RHI to RHI, and RHI would transfer the management agreement of Hawaiian Regent and Indra Regent and the shares of Chamora/Pacific Management Company to THI.

Joint venture with RHI was terminated after about 2 years since the company was established. From this time Regent went all by it self but they continued to provide sales promotion service for Hawaiian Regent Hotel and Indra Regent Hotel for 3 years from September 1, 1973.

In March 1975 THI transferred all shares of THI Hawaii Inc. to Tokyu Corporation and Tokyu Tourism Company and remained just as the operator of the hotel.

THI Hawaii expanded its property in 1979 and the total number of rooms became 1,346. The company grew to the level that it could undertake the management of Mauna Lani Bay Hotel and Emerald of Anaheim. In 1981 the company changed its name to Emerald Hotels Corporation to show distinction from THI.

(To be continued)

Please contact: kazuyoshi.shimojima@tkk.tokyu.co.jp