Arthur Andersen's Singapore Practice Becomes the Hospitality & Leisure Services Centre for the Firm's South-East Asia Operations.

SINGAPORE--(BUSINESS WIRE)--Nov. 10, 1999--

The Practice Also Announces the Latest Industry Performance

Statistics for Asia/Pacific

Arthur Andersen recently announced the establishment of its Hospitality and Leisure consulting services group in Singapore.

The location of the practice in Singapore strengthens Arthur Andersen's presence in South-East Asia while providing truly global hospitality and leisure services to its clients.

Increased local industry activity and the establishment of global clients' operations in Singapore demanded an expansion of the practice. Steven Phan, partner and head of Business Consulting, Arthur Andersen Singapore, states "The hospitality industry has been through major changes in recent times and is moving to the next level. The new millennium will bring greater focus towards improving return on investment, generating wealth and increasing shareholder value. Arthur Andersen is committed to being close to its clients, and providing innovative and strategic solutions to business problems."

The Hospitality and Leisure Services consulting team for South-East Asia will be led by Andreas Flaig. Prior to relocating to Singapore, Flaig had been managing Arthur Andersen's Hospitality and Leisure Services practice in Hong Kong. Before joining Arthur Andersen, Flaig was the Marketing Services and Yield Manager for the Mandarin Oriental Hotel Group in Hong Kong and has over 10 years of international experience in the hospitality industry.

Flaig says that even though Singapore has had some economic challenges with falling room rates and the weaker Singapore dollar, these factors have also made Singapore a better value destination. The most recently released hotel industry benchmark statistics provided by Arthur Andersen indicate that hotel markets in Bali, Seoul, Tokyo and Hong Kong performed soundly during the month of September, all achieving average occupancy rates over 80 percent. Singapore's occupancy performance for September year-to-date was up five percent compared with the same period last year. However, a lower average room rate was recorded, resulting in a drop in revenue per available room (RevPAR) of almost 10 percent. Remarks Flaig, "I think the worst times in Singapore are over. Incredible strides have been made in promoting the hospitality business, and the hotels here are of very good quality."

On the future of the industry, Flaig comments, "The mindset of major players in the hospitality industry is changing towards developing closer relationships with their customer base. As greater emphasis is placed on guest preferences, sophisticated technology is being developed and implemented to improve knowledge management systems throughout the enterprise. Such systems are utilised to generate guest loyalty and brand power, in addition to increasing exposure to various sources of demand and driving profits."

Arthur Andersen will continue to provide hospitality and leisure services practices in Greater China under the direction of Flaig. The other Arthur Andersen offices in Asia/Pacific that specialise in the hospitality and leisure industry include Australia, Hong Kong and Japan.

The range of consulting services available to clients around the region include market demand and feasibility studies, acquisition due diligence, strategic business planning, and information technology.

Arthur Andersen is the leading provider of business advisory services to the hotel, leisure and casino gaming industries, as well as to governments, owners, operators, financiers and investors worldwide. An extensive network of 320 dedicated partners and managers in 107 offices in 60 countries distinguishes Arthur Andersen as the only truly global hospitality and leisure practice. The Arthur Andersen Hotel Industry Benchmarking Survey studies more than 300 hotels across 15 Asian cities. This survey is expected to grow to cover 25 markets and over 500 hotels by the end of 1999.

Arthur Andersen is a global professional services organization consisting of over 100 member firms in 81 countries. A single worldwide operating structure and a common culture that fosters innovation, knowledge sharing and quality service, unites more than 70,000 people. This unique one-firm approach qualifies the people of Arthur Andersen to serve clients by bringing together any of more than 40 services in a way that transcends geographic borders and organizational lines. Arthur Andersen's people provide effective business solutions to more than 100,000 clients around the world. Since its beginning in 1913, Arthur Andersen has realized 85 years of uninterrupted growth. With revenues of over US$6 billion, it stands today as a world leader in professional services. Arthur Andersen is a business unit of Andersen Worldwide.