Hotels & Hospitality News

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ATLANTA, Ga., November 28, 2006 - The U.S. lodging industry continues to benefit from double-digit profit growth in 2006. According to a recent study, the gross operating profit (GOP) for the typical U.S. hotel increased 13.1 percent from the first half of 2005 to the first half of 2006. However, during this period hotel managers continued to struggle to control such costs as salaries and wages, employee benefits, utilities, and maintenance. This analysis is based on data presented in the recently released 2006 mid-year edition of Trends in the Hotel Industry published by PKF Hospitality Research (PKF-HR), an affiliate of PKF Consulting.
"Due to the strength of the economy, U.S. hotels posted healthy increases in occupancy and room rates during the first half of 2006," said R. Mark Woodworth, president of Atlanta-based PKF-HR. "Given where the lodging industry is in the business cycle, the strong gains in room rates were expected, and the sustained growth in occupancy augurs well for continued profit growth. While the resulting 9.7 percent gain in total revenue is certainly welcome, it is the 7.8 percent increase in operating expenses that concerns hotel owners and operators."

"Compared to other industries, the hotel business does not benefit to the same degree from gains in productivity due to automation," Woodworth noted. "Hotels are very labor-, marketing-, and management-intensive. They are 24/7 operations that require a complete re-sell of the inventory each and every day. The 13.1 percent increase in profit over the first six months of 2006 has been achieved because the marketplace has generated revenues that outpaced the sharp rise in these burdensome operating expenses."

The PKF-HR 2006 mid-year edition of Trends in the Hotel Industry presents detailed revenue and expense data for both full-service and limited-service hotels for the periods January through June of 2006 and 2005. For the purposes of this report, operating expenses and GOP are calculated before deductions for management fees, property taxes, and insurance.

Strong Revenue Growth

Total hotel revenue grew 9.7 percent during the first half of 2006, the result of strong sales in most operating departments. The survey sample averaged a 1.9 percent gain in occupancy, along with an 8.5 percent increase in average room rates (ADR). The net result was a 10.6 percent boost in rooms revenue, the main driver of total revenue.

"A benefit of the strong gain in occupied rooms is the contribution it made to increased business in the restaurants, lounges, and other operated departments of the nation's hotels," Woodworth noted. "Except for the telecommunications department, all minor sources of hotel revenue achieved growth in excess of 7.0 percent."

Unallocated and Uncontrollable

Hotel operating expenses grew an average of 7.8 percent during the first half of 2006. This is more than twice the 3.8 percent U.S. inflation rate recorded during the same period.

"When analyzing the data, all expense items experienced strong increases during the first half of 2006," said Woodworth. "A closer look reveals that the greatest increases in operating costs occurred in the areas where management has the least control."

Total operated department expenses grew 6.7 percent in the first six months of 2006, compared to a 9.5 percent growth in undistributed department expenses. Undistributed department costs, such as administration, marketing, maintenance, and utilities, are typically viewed primarily as fixed expenses. In other words, they do not vary as much with business volume as the expenses in the rooms, food, and beverage departments.

"The fact that undistributed operating expenses grew faster than the operating department costs is indicative of the rise in the base cost of the goods and services that hotels must purchase to sustain their operations," Woodworth said. "For example, hotel management has very little control over a sharp rise in utility costs, or increases in royalty payments based on the terms of their franchise contract. On the other hand, operators do have the ability to adjust the staffing of room attendants or bartenders to control labor costs."

Limited-Service Thriving

Through the first half of 2006, limited-service hotels enjoyed greater gains in revenue and profits compared to full-service properties. During the first six months of 2006, limited-service revenues grew 11.1 percent, which resulted in a 17.7 percent gain in GOP. Concurrently, full-service hotels saw their revenues grow 9.5 percent, while enjoying a 12.4 percent increase in profits.

"Limited-service hotels did not experience as severe a decline in performance during the 2001 - 2003 recession, thus positioning the segment a little behind full-service hotels in the long-term business cycle. Limited service hotels are currently experiencing great gains in revenue and profits because their recovery has occurred at a slower pace," Woodworth said. "Full-service properties have already reached the peak of their recovery and are now entering a period of more modest profit growth."

Slower Finish, Yet Still Strong

Due to the impact of Hurricane Katrina on industry performance during the fourth quarter of 2005, as well as a moderation in the nation's economic growth, PKF-HR is expecting a slight slowdown in the pace of performance gains during the later part of 2006. "The lingering Katrina and economic impacts on lodging industry performance during the fourth quarter of 2006 will result in annual revenue and profit gains somewhat less than those achieved during the first half of the year. However, PKF-HR is still projecting that 2006 will mark the third consecutive year of double-digit profit growth for U.S. hotels," Woodworth concluded.

To purchase a copy of the 2006 mid-year edition of Trends in the Hotel Industry, please visit the firm's online store at www.pkfc.com/store, or call Claude Vargo or Brandon Culp at (866) 842-8754.

PKF Hospitality Research (PKF-HR), headquartered in Atlanta, is the research affiliate of PKF Consulting, a consulting and real estate firm specializing in the hospitality industry. PKF Consulting has offices in Boston, New York, Philadelphia, Washington DC, Atlanta, Indianapolis, Houston, Dallas, Los Angeles, and San Francisco.

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WASHINGTON, DC - The U.S. entry process has created a climate of fear and frustration that is turning away foreign business and leisure travelers from visiting the United States - and damaging America's image abroad. But, according to a new global study conducted by the Discover America Partnership, minor improvements in welcoming travelers could yield substantial diplomatic and economic gains.
The study, conducted by independent polling firm RT Strategies and based upon a survey of more than 2,000 travelers worldwide, sought to gauge traveler perceptions of the U.S. visa and entry process, and how opinions of America differ among those that have and have not visited the U.S. The study revealed that, by deterring visitors, the U.S. is missing an enormous economic and diplomatic opportunity. Those that have visited the U.S. and interacted with the American people are 74 percent more likely to have an extremely favorable opinion of the U.S.

"This study should be a wake-up call for the U.S. government," said Geoff Freeman, Executive Director of the Discover America Partnership. "Visiting the United States and interacting with the American people can have a powerful, positive effect on how non-U.S. residents see our country. Unfortunately, perceptions of a "rude" and "arrogant" entry process are turning away travelers and harming America's image."

Among the study's key findings:

* The U.S. entry process is considered the "world's worst" by travelers - Travelers rate America's entry process as the "world's worst" by greater than a 2:1 margin over the next-worst destination area. - The U.S. ranks with Africa and the Middle East when it comes to traveler-friendly paperwork and officials. - 54 percent of international travelers say that immigration officials are rude. - Travelers to the U.S. are more afraid of U.S. government officials than the threat of terrorism or crime. - Two-thirds of travelers surveyed fear they will be detained at the border because of a simple mistake or misstatement. * By deterring visitors, the U.S. is missing an enormous diplomatic and economic opportunity - Those with experience visiting America are 74 percent more likely to have an extremely favorable opinion of the country versus those who have not visited recently. - 63 percent of travelers feel more favorable towards the U.S. as a result of their visit. - 61 percent agree that, once a person visits the U.S., they become friendlier towards the country and its policies. - Negative attitudes about U.S. treatment of visitors are having a much larger effect on keeping travelers away from the U.S. than negative attitudes about U.S. policies in the world. - Nearly nine in 10 travelers tell their friends, relatives about their travel experiences most or all of the time. * Minor changes in the U.S. treatment of foreign business and leisure travelers would yield substantial gains - In every destination criteria but the point of entry experience, international travelers rank America in the top three. Travelers want to come to the U.S. - Travelers are willing to wait an average of 46.5 days to get a visa to visit the U.S - 15 days beyond U.S. State Department standards, but far less than current wait times in many countries. - Travelers expectations include clear communications, respect and courteous treatment.

"Foreign travelers are in agreement: the U.S. entry process is unpredictable and unfriendly to foreign visitors, it is hurting America's image abroad and deterring many from visiting the U.S.," said Thomas Riehle, partner, RT Strategies. "These survey results help to explain the 17 percent decline in overseas travel to the U.S. over the past five years and the 10 percent decline in business travel to the U.S. over the past year."

The Discover America Partnership was launched in September, 2006 by some of America's foremost business leaders. These business leaders recognize travel to the U.S. as an integral aspect of the public diplomacy process and have challenged the U.S. to welcome an additional 10 million more visitors annually. This initiative is undertaking an aggressive, ongoing campaign to draw national attention to the issue, and to push for solutions.

The Partnership is pursuing a variety of initiatives to help the U.S. better compete for international travelers, including:

* A detailed assessment of the U.S entry process, and how the nation balances security and economic prosperity. The study will look at the impact of current point-of-entry policies on the U.S. economy, and what we can learn from other countries. * An ongoing effort to tap into the travel industry's expertise in hospitality to develop new, creative and better ways to welcome visitors to our country. * A worldwide study of how other countries compete for international travelers and how the U.S. can demonstrate its commitment to welcoming more visitors.

The Discover America Partnership/RT Strategies study of international travelers was conducted between October 25th and November 9th, 2006. 2,011 non-U.S. resident international travelers were surveyed, representing 15+ countries worldwide. Half of those travelers had visited the U.S. since September 11, 2001; the other half had not visited the U.S. since September 11, 2001.

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BEVERLY HILLS, Calif.--Nov. 28, 2006--Hilton Hotels Corporation (NYSE:HLT) today announced they will create a joint venture company (JV) in India with DLF Limited (DLF). The joint venture company plans to develop and own 75 hotels and serviced apartments over the next seven years. The formation of the joint venture is pending receipt of formal written approval from the Government.
The JV-owned hotels will represent several brands from the Hilton Hotels Corporation portfolio, including Hilton Hotels, Hilton Garden Inn, Homewood Suites by Hilton and Hilton Residences. The JV Company will develop and build these properties, while Hilton will manage them.

DLF will hold 74% in the JV Company, and Hilton will hold the remaining minority stake as a symbol of its commitment to the venture. Over the next five to seven years, Hilton will invest up to USD 143 million in the JV Company, before consideration of debt.

The initial stage of the joint venture will involve 20 hotels in a number of key locations, including Chandigarh, Chennai and Kolkata. A large number of these hotels are expected to be Hilton Garden Inn properties -- a business hotel brand, offering focused service. Beyond the initial 20 sites, the JV Company will continue to identify and acquire sites and undertake new hotel developments.

Ian Carter, Executive Vice President, Hilton Hotels Corporation and CEO of Hilton International Operations, explained the attraction of the Indian market: "India is an outstanding market for hotel development, given its powerful combination of economics and demographics. Hilton will build on its collective experience in India and the opportunity with DLF is a compelling next step to capitalise on the development momentum and build our Hilton Family of Brands in India."

Shakti Singh, Director, Hospitality Business, DLF, said, "We are very excited about this venture with Hilton. We see tremendous opportunities for growth in the hospitality sector in India, given the attractive tourism and business avenues unfolding in the country. Through this strategic partnership, we are confident of bringing world-class hospitality and services across the country, further strengthening the benchmarks that DLF has established as a pan-Indian developer."

Notes to Editor

1. DLF

DLF is one of India's leading real estate developers. Headquartered in Delhi and with significant operations in the National Capital Region (NCR) of Gurgaon, south of Delhi, DLF is engaged in the businesses of developing homes, offices, shopping malls, SEZs, hotels and infrastructure projects. The group has an established track record spanning six decades in developing premium residential, commercial and retail projects. With a strong presence in Delhi and the NCR, the group is actively pursuing an expansion plan spread across several cities in the country to reinforce its national leadership position in the Industry.

2. Hilton Hotels Corporation

Hilton Hotels Corporation (NYSE:HLT) is a leading global hospitality company, with more than 2,800 hotels and 495,000 rooms in more than 80 countries, including 150,000 team members worldwide.

The company owns, manages or franchises a hotel portfolio of some of the best known and highly regarded brands, including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations(TM), Homewood Suites by Hilton(R), Scandic and The Waldorf=Astoria Collection(R).

The Hilton Family of Hotels adheres to founder Conrad Hilton's philosophy that, "It has been, and continues to be, our responsibility to fill the earth with the light and warmth of hospitality." The company put a name to its unique brand of service that has made it the best known and most highly regarded hotel company: be hospitable(R). The philosophy is shared by all 10 brands in the Hilton Family of Hotels, and is the inspiration for its overarching message of kindness and generosity.

For more information about our company, please visit www.hiltonworldwide.com, and to learn more about our be hospitable philosophy, please visit www.behospitable.com.

3. Hilton Hotels Corporation in India

Through its alliance with EIH, Hilton Hotels Corporation has nine existing franchised hotels in India under the Trident Hilton and Hilton brands. Another hotel is currently being developed by EIH and will be franchised as a Trident Hilton under this arrangement. These properties are managed by EIH while Hilton is responsible for international marketing, promotion and reservations through the Hilton global network.

Hilton will manage five additional hotels under development -- Hilton Bangalore, Hilton Residences at Embassy Gold Links Bangalore, Hilton Chennai, Hilton Hyderabad Palace and Shilim Retreat by Hilton.

4. Hilton Garden Inn

Hilton Garden Inn is the award-winning mid-priced brand throughout North America and Europe that features complimentary wired and wireless high speed Internet access in guestrooms and public space, as well as innovative guestroom offerings, like the Garden Sleep System(TM) bed and ergonomic Mirra(R) chair from Herman Miller. Hilton Garden Inn locations offer a complimentary 24-hour business center; the Pavilion Pantry(R), where guests can purchase snacks, beverages and microwaveable items, as well as various sundries; a full service restaurant serving cooked to order breakfast and dinner room service; flexible meeting space; and a complimentary workout facility. For more information about Hilton Garden Inn properties, please visit www.StayHGI.com.

5. Homewood Suites by Hilton

Launched in 1989, the Homewood Suites by Hilton brand today has 189 hotels open in the Unites States and Canada, with another 120 in the pipeline. Beyond its spacious suites and home-like amenities, Homewood Suites offers on-site Suite Shop(R) convenience store, exercise facility and guest laundry at most locations. Guests can also enjoy a daily complimentary Suite Start(R) hot breakfast and a Welcome Home(R) reception featuring a complimentary light meal and beverages Monday-Thursday evenings. Additional guest services at Homewood Suites by Hilton hotels include a complimentary grocery shopping service and a complete business center at most locations.

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Hotel investors seeking the highest risk-adjusted returns should now focus their attention on the second-tier hotel markets, according to Hotel Investment Strategies, LLC, a lodging investment advisory firm based in New York.
On a risk-adjusted basis, a portfolio of second-tier hotels outperforms a portfolio of top-tier hotels in the mid to later stages of the up-cycle, whereas the top-tier portfolio outperforms the second-tier portfolio in the contraction, recession and early stages of the up-cycle. "Now that we are in the mid to later stages of the up-cycle, a portfolio of small city full-service hotels is a valuable addition to a large-city-only portfolio, both as a return enhancer and a risk diversifier," said Ross Woods, Principal of Hotel Investment Strategies. "Conversely, a portfolio of large city full-service hotels is a valuable addition to a portfolio of mainly small city full-service hotels in the contraction, recession and early stages of the up-cycle."

The firm back- and forward-tested both the top-tier and the second-tier hotel portfolios to determine the historical and forecast portfolio returns by assuming that each market is equally weighted in its respective portfolio. "On a five year rolling basis, the top-tier hotel portfolio generated a marginally higher average annual RevPAR growth rate at 3.5% for the period 1992 to 2005 compared to the second-tier portfolio at 3.2%". However the top-tier hotel portfolio experienced higher average risk at 4.4% per year compared with 3.6% for the second-tier hotel portfolio. Therefore, on a risk-adjusted basis, the second-tier portfolio marginally outperformed the top-tier portfolio," said Mr. Woods.

"Over the next four years the top-tier portfolio is likely to provide higher RevPAR growth rates but be burdened with higher risk. On a risk-adjusted basis the second-tier hotel portfolio is likely to outperform the top-tier portfolio for the remainder of the decade."

Mr. Woods said the key to higher returns over the next few years is to spot those small cities that will grow much faster than average. "The challenge for investors is to find suitable hotel assets in the second-tier markets. While the country has about 4.4 million hotel rooms, 19.5% are full service in the top 25 markets and only 6% are full service in the next 25 markets. The biggest issue facing investors in the second-tier hotel markets is illiquidity and this should be factored into the purchase price."

In the same way that many stock investors rotate between sectors based on their assessment of the state of the business cycle, hotel investors should do likewise. "The idea is to shift the portfolio more heavily into markets that are expected to outperform based on forecasted risk-adjusted returns," said Mr. Woods. "Sector rotation, like any other form of market timing, will be successful only if an investor anticipates the next stage of the hotel cycle better than other hotel investors."

"Smaller hotel markets are less correlated with large markets, making them excellent candidates for diversifying a large-market-only portfolio," said Mr. Woods. "Furthermore smaller hotel markets have low correlation with themselves which means that even when a hotel fund is of limited size, a well diversified portfolio can be constructed because there are a large number of full-service hotels in smaller markets."

While the competition for large city hotel assets has been intense in recent times, many REITs have targeted smaller cities. "It appears that hotel REITs own more properties in these markets compared with their private counterparts. While small hotel markets are attractive to many REITs, they are being overlooked by many institutional investors who have been concentrating their acquisitions in the top 20 metropolitan areas in the country," said Mr. Woods.

The top twenty-five hotel markets include markets such as New York, Chicago and Los Angeles as well as markets such as Denver, Detroit, Baltimore and San Diego. The second-tier includes markets such as Austin, Cleveland, Indianapolis, Omaha and Richmond.

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White Plains, N.Y.-Starwood Hotels & Resorts Worldwide is combining Starwood Vacation Ownership with its Global Development Group, which includes the company's Real Estate Group.

Raymond "Rip" Gellein, president of the Global Development Group since July, will lead the combined group.

The move is intended to "improve our ability to better meet the needs of our owner/developer community as we continue to aggressively expand our footprint around the globe," according to a statement from the company. The decision was "designed around Starwood?s brands, which are the foundation of our value proposition and the driver of our growth and momentum," the statement said.

The new structure in North America will include three development groups responsible for new business development and key account management:

- A select-service team, which will support Four Points, aloft and Element, led by Paul Sacco, senior v.p, select hotels development;

- A full-service team, which will support Westin, Sheraton and Le M?ridien, led by Tony Larino, senior v.p. for full-service development; and

- A luxury team to support W, St. Regis and Luxury Collection, led by Amar Lalvani, senior v.p. for Luxury and W Development.

Serge Rivera was named president of real-estate development. He will be responsible for mixed-use development and architecture, design and construction, in addition to his current responsibilities with SVO. Matt Avril will continue in his current responsibilities for SVO while leading a team that will provide central services to all of the GDG in his new role as president, real-estate operations.

The new organization also includes an expanded marketing and analysis function, which includes brand focused marketing, pricing and deal program management led by Sara Schiller, senior v.p., real-estate marketing and analysis.

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Settle Inn LLC, a 14-year-old regional hospitality company with franchise operations in five states, said today it has purchased GuestHouse International Inns, Hotels & Suites, a leading upper-economy brand of more than 70 franchisees with operations in 22 states and China.
Brendan Watters, president and CEO of Settle Inn LLC, said the purchase is effective December 1, 2006, and includes absorbing the majority of existing employees of the GuestHouse International franchise system. GuestHouse International, based in Hendersonville, TN near Nashville, is a subsidiary of ShoLodge, Inc.

"We are extremely pleased to announce the completion of this purchase," Watters said. "Both Settle Inn and GuestHouse International have built a history of success and growth through the hard work and expertise of excellent staff and leadership."

Watters said the headquarters of a newly formed parent company will be based in the existing GuestHouse International offices in Hendersonville. "This brand has experienced great success in recent years due principally to the strength of its strong field based franchise support system," Watters continued.

Tim O'Connor, Settle Inn's senior vice president of brand management, said the two brand's complimentary market segments offer opportunities for more efficient and strategic growth in the mid-scale and upper-economy sectors, and a broader array of development opportunities for both new construction and conversion. "Settle Inn and GuestHouse International give owners entrepreneurial freedom and deliver personalized, essential services without the cost or inflexibility that is common in today's lodging industry," O'Connor said.

Last year, GuestHouse International announced the conversion of 11 franchised hotels to the GuestHouse brand. Earlier this year, the Company announced the opening of the first truly international property in China (GuestHouse International Hotel Sanya) and reported plans to convert another property in Beijing. The Company's present franchise hoteliers have more than 5,000 rooms in operation.

Terry Kline, Settle Inn's senior vice president of franchise sales and development, will manage development for both brands. He said that the Company will add a minimum of 20 new properties to the Settle Inn brand, while adding 30 to GuestHouse in 2007.

"We expect to continue the proven strategy set forth during the past four years," Kline observed. "We will support the strategy of quality growth instead of quantity growth."

James M. Grout, president and chief operating officer of ShoLodge, Inc., said the GuestHouse International brand "is in excellent hands. The Settle Inn management organization is acclaimed in the industry for developing a new standard in fair franchise agreements. The Company recently earned a near-perfect rating (99.3%) in fair franchising by the American Association of Franchisees and Dealers," he noted.

Watters explained that the new company plans to bring its quality resources to the "already strong franchise programs created by GuestHouse International. We're committed to building relationships based on trust and respect. Since the formation of Settle Inn 14 years ago, we've developed an outstanding regional brand and poised for substantial growth."

"Our philosophy in franchise support is identical to the successful philosophy exhibited by GuestHouse International since ShoLodge acquired that brand in 2002," Watters said. "Our strategy will be to maintain that philosophy through great employees who deliver legendary service that rewards our guests like no other brand in our industry sector."

Settle Inn and Settle Inn & Suites are hotel brands designed for hoteliers by hoteliers. The Company is based in Aberdeen, South Dakota, and currently has seven locations in Kansas, Iowa, Nebraska, North Dakota and Wisconsin.

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Cleveland - Boykin Management Co. is pleased to announce the appointment of Joseph Smith to the position of President at its headquarters, located in Cleveland.
"I am pleased to announce the promotion of Joe Smith to the position of President of Boykin Management Company. Joe has brought a wealth of knowledge and years of experience to the Boykin organization, and his strong management skills and command over the day-to-day operations will further strengthen our market leading position," commented Robert Boykin.

Most recently, Joe served as Chief Operating Officer of Boykin Management Company with operational responsibility for the company's managed hotels and resorts.

Mr. Smith began his career with Boykin in 1985 at the Beachwood Marriott as Director of Restaurants. He subsequently served as General Manager of the Columbus Marriott East and Columbus Marriott North hotels before serving as Corporate Food and Beverage Director. During his tenure with Boykin Management Company, Mr. Smith has held the position of Regional Vice President, General Manager, Corporate Director of Food & Beverage, and Food & Beverage Director, among others. Prior to Boykin, Joe held various positions within both T.G.I. Fridays and American Airlines, adding additional hospitality and travel related experience.

Mr. Smith received his Bachelor's of Science degree from the University of Wisconsin and has been a member of the Hotel Asset Managers Association (HAMA), National Hotel/Motel Assn., and Hotel Electronic Distribution Network Assn. (HEDNA). He and his wife, Liz, reside in Avon Lake, Ohio with their daughters, Kelsey and Haley.

About the Company:

Founded in 1958, Boykin Management Co.operates branded and independent first class and upscale hotels, condominium hotels, and resorts throughout the United States. Boykin has built a leadership reputation in the hotel industry with a solid foundation of experience in hotel operation, management, and development. Boykin is nationally recognized for its expertise in providing superior services to institutional, high net worth, private equity funds, developers and other hotel ownership groups.

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PALM SPRINGS, Calif. - December 4, 2006 - The Spa Resort Casino, Palm Springs and Agua Caliente Casino, Rancho Mirage have been honored with high marks from the readers of Palm Springs Life's annual "Best of the Best" Readers' Choice Awards 2006. The winners are published in the December 2006 issue.
Agua Caliente Casino and Spa Resort Casino were voted Best Casino and runner up in the Best Casino category by readers for their non-stop gaming excitement. Both full-amenity casinos feature the newest slot and video machines, blackjack, Hotwater Craps and a High Limit Gaming area.

Famous for its natural healing waters, the Spa Resort Casino was voted Best Spa as the ultimate destination for relaxation, rejuvenation, and health and wellness. The full-service Spa features saunas, steam, aromatic inhalation and tranquility rooms, private mineral baths, and relaxation and spa cuisine lounges.

In the category of Best Sunday Brunch, Spa Resort Casino?s Oasis Buffet also earned a top spot. The buffet features active cooking stations for custom-ordered entrees and an expansive international menu that includes Mediterranean, Latin, Regional American, World and Pacific fare.

Indian Canyons, the Tribe's four canyons that were featured as Shangri-La in Frank Capra's 1937 film Lost Horizon, also received kudos from Palm Springs Life readers for "Best Hike."

Palm Springs Life's "Best of the Best" is an ongoing series of readers choice polls and surveys, independent studies, and editor's choice features that deliver valuable, service-oriented information to readers throughout the year.

Agua Caliente Casino is located at 32-250 Bob Hope Drive in Rancho Mirage, California. Home to 1,000 slots, 49 table games, 11 poker tables and Bingo. Agua Caliente Casino also offers many delicious dining venues including the Steakhouse, Sage Bar and Grill, Grand Palms Buffet and the Desert Eatery Food Court. In addition, the valley's best live entertainment can be found inside its Cahuilla Showroom and Canyons Lounge. For more details, call the Agua Caliente Casino Information Line: 888.999.1995, or visit the web site at www.HotWaterCasino.com.

Spa Resort Casino is located in the heart of downtown Palm Springs, California, at 401 E. Amado Road. Casually elegant, the Spa Resort Casino offers the best in gaming with 1,000 slots, 30 table games and a private high-limit gaming room. The property offers the best dining choices, including the Steakhouse at Spa Resort Casino, the Noodle Bar, the Corner Deli, and the 300-seat Oasis Buffet. Cascade Lounge, Palm Springs' hottest nightspot, is where you'll find live entertainment and dancing nightly. The Hotel at Spa Resort Casino is home to 228 luxury rooms and the world-famous Spa and Well Spirit Fitness Center.

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CARROLLTON, Texas (December 6, 2006) - Accor North America, one of the largest hotel chain owners and operators in North America, was recently recognized as an Energy Star Leader by the U.S. Environmental Protection Agency (EPA) for improving energy efficiency across its Red Roof Inn, Studio 6 and Motel 6 properties. Energy Star Leaders are recognized as part of the EPA's Energy Star Building Challenge, a program encouraging building owners and managers to reduce energy use by 10 percent or more. As part of the Energy Star Building Challenge, Accor North America joined 20 others as Energy Star Leaders recognized for improving the energy efficiency of buildings.
"We are very proud of our accomplishments in energy management and are honored to be acknowledged as an Energy Star Leader by the EPA," said Dan Gilligan, vice president of utilities. "Energy efficiency has long been a priority for Accor, and we take great pride in developing energy management initiatives that help protect our environment everyday."

To become an Energy Star Leader, a company must have energy efficiency improvements of 10, 20 or 30 points above the organization-wide baseline or have an average rating of 75 points or better portfolio-wide. The points are based on a number of factors including building size, location, number of occupants and number of computers. These factors are then coupled with the energy input documented by the organization or company and compared to energy consumption of similar buildings. Fifty points is the average energy performance, with 100 points equaling the most efficient use of energy. Accor North America obtained its EPA honor by achieving a rating over 75 points, which is considered a top performance.

Having joined Energy Star in 2000, Accor North America has developed initiatives that require sharing, implementing and monitoring energy management standards throughout each of its hotel brands, including Red Roof Inn, Studio 6 and Motel 6. Accor North America also uses the Energy Star rating system to maintain its low energy consumption, as well as to identify exemplary hotel properties.

Businesses and organizations must first become an Energy Star Partner before being considered for the honor of Energy Star Leader. Once an Energy Star Partner, the EPA must be able to rate two or more of the partner's facilities using its national energy performance rating system.

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Sabre Holdings (NYSE:TSG), Silver Lake Partners and Texas Pacific Group (TPG) today announced that they have signed a definitive agreement under which Silver Lake Partners and TPG will acquire Sabre Holdings for $32.75 per share in cash.

The transaction is valued at approximately $5 billion, including the assumption of approximately $550 million in net debt. The price represents a premium of 30 percent over the Sabre Holdings average closing share price during the 60 trading days ended December 8, 2006.

The board of directors of Sabre Holdings approved the definitive merger agreement and recommended its approval by stockholders.

"After a thorough assessment, we concluded that this transaction represents a compelling outcome for our shareholders, customers and employees," said Sam Gilliland, Chairman and CEO of Sabre Holdings. "We are excited about the ability to deliver substantial value today to our shareholders, and we look forward to a strong future, partnering with two preeminent investment firms that are closely aligned with our strategy and long-term objectives. This transaction is a clear endorsement of our business model, our industry leadership and the hard work and dedication of our talented people around the world."

Greg Mondre, a Managing Director of Silver Lake Partners, said, "Sabre has a remarkable track record of pioneering and delivering best-in-class technology solutions for the global travel industry. We look forward to working with Sabre's talented management team as they continue to deploy technology as a source of competitive advantage and value-add for customers."

"We are excited by the opportunity to invest in Sabre given its leadership position in travel technology and distribution and the strength of Travelocity and its other leading online brands," said TPG Partner, Karl Peterson. "Sabre is well positioned to continue innovating and we look forward to helping management profitably build upon this strong franchise."

Sabre Holdings does not expect changes to its current executive management team, and the company said its corporate headquarters will remain in Southlake.

The completion of the definitive merger agreement is subject to customary closing conditions, including receipt of stockholder and regulatory approval. The closing of the transaction is expected to occur by early in the second quarter of 2007. There is no financing condition to the obligations of TPG and Silver Lake Partners to consummate the transaction, and equity and debt commitments for the full amount of the merger consideration have been received. It is anticipated that the company's outstanding 2011 and 2016 Notes will remain outstanding.

Goldman, Sachs & Co. and Morgan Stanley serve as financial co-advisors to Sabre Holdings. Bear, Stearns & Co. provided a fairness opinion in connection with the transaction. Latham and Watkins LLP serves as legal adviser to the company in connection with this transaction.

Deutsche Bank and Merrill Lynch serve as financial advisors and financing providers to Silver Lake Partners and TPG, and Cleary Gottlieb Steen & Hamilton LLP serve as their legal advisor for this transaction.

About Sabre Holdings

Sabre Holdings connects people with the world's greatest travel possibilities by retailing travel products and providing distribution and technology solutions for the travel industry. Sabre Holdings supports travelers, travel agents, corporations, government agencies and travel suppliers through its companies: Travelocity, Sabre Travel Network and Sabre Airline Solutions. Headquartered in Southlake, Texas, the company has approximately 9,000 employees in 45 countries. Full-year 2005 revenues totaled $2.5 billion. Sabre Holdings, an S&P 500 company, is traded on the NYSE under the symbol TSG. More information is available at http://www.sabre-holdings.com.

About Silver Lake Partners

Silver Lake Partners is the leading private equity firm focused exclusively on large-scale investing in technology, technology-enabled, and related growth industries. Silver Lake seeks to achieve superior returns by investing with the strategic insight of an experienced industry participant, the operating skill of a world-class manager and the financial expertise of a disciplined private equity investor. Silver Lake's mission is to function as a value-added partner to the management teams of the world's leading technology franchises. Its portfolio includes or has included technology industry leaders such as Ameritrade, Avago, Business Objects, Flextronics, Gartner, Instinet, IPC Systems, MCI, NASDAQ, Network General, NXP, Seagate Technology, Serena Software, SunGard Data Systems, Thomson and UGS. For more information, please visit www.silverlake.com.

About TPG

TPG is a private investment partnership that was founded in 1992 and currently has more than $30 billion of assets under management. With offices in San Francisco, London, Hong Kong, Fort Worth and other locations globally, TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. TPG seeks to invest in world-class franchises across a range of industries, including travel (America West, Continental, Hotwire), technology (Freescale Semiconductor, Lenovo, MEMC, ON Semiconductor, Seagate, SunGard), financial services (Ariel Reinsurance, Fidelity National Information Services, LPL Financial Services), industrials (Altivity Packaging, British Vita, Grohe, Kraton Polymers, Texas Genco), retail/consumer (Debenhams, Ducati, J. Crew, Neiman Marcus, Petco), media and communications (Findexa, MGM, TIM Hellas), and healthcare (IASIS Healthcare, Oxford Health Plans, Quintiles Transnational), among others. Visit www.texaspacificgroup.com.

About the Transaction

In connection with the proposed merger, Sabre Holdings will file a proxy statement with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS ARE STRONGLY ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy statement (when available) and other documents filed by Sabre Holdings at the Securities and Exchange Commission's Web site at http://www.sec.gov. The proxy statement and such other documents may also be obtained for free by directing such requests to the Sabre Holdings investor relations department at 866-722-7347, or on the company's website at www.sabre-holdings.com/investor.

Sabre Holdings and its directors, executive officers and certain other members of its management and employees may be deemed to be participants in the solicitation of proxies from its stockholders in connection with the proposed merger. Information regarding the interests of such directors and executive officers is included in Sabre Holdings Proxy Statement for its 2006 Annual Meeting of Stockholders filed with the Securities and Exchange Commission on April 4, 2006, and information concerning all of Sabre Holdings participants in the solicitation will be included in the proxy statement relating to the proposed merger when it becomes available. Each of these documents is, or will be, available free of charge at the Securities and Exchange Commission's Web site at www.sec.gov and from the Sabre Holdings investor relations department at 866-722-7347, or on the company's website at www.sabre-holdings.com/investor.

Statements in this release which are not purely historical facts or which necessarily depend upon future events, including statements about the completion or timing of the proposed merger or the operation of Sabre Holdings after the merger, or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Sabre Holdings on the date this report was submitted. Sabre Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to: the merger not being consummated because Sabre Holdings stockholders do not approve the merger or either party fails to meet closing conditions described in the merger agreement, or the merger being delayed or not being consummated because the parties are unable to meet specific conditions required to obtain regulatory approvals. Sabre Holdings may not succeed in addressing these and other risks. Further information regarding factors that could affect Sabre Holdings financial and other results can be found in the risk factors section of Sabre Holdings most recent filing on Form 10-K with the Securities and Exchange Commission.