HONOLULU, HAWAII, Feb, 1998 -   Hawaii-based hotel company Outrigger Hotels & Resorts has added the continent of Australia to its growing list of global interests. In an announcement made today, Outrigger said it will form a joint venture with a Queensland, Australia resort group, Paradise Apartments, to market and manage several resort properties in a growing destination: Surfers Paradise on the fabled Gold Coast.

The joint venture will manage, market and provide worldwide sales and reservations services for three resort condominiums, with a total of  496 units. The venture also will provide sales, marketing and reservations for a fourth property�the 311-unit Sun City Resort�which is currently under development.

�For many years Outrigger Hotels has been the brand of choice for Australians visiting Hawaii,� said David Carey, Outrigger's president and chief executive officer. �Because of this history and our high degree of awareness in the market, Outrigger has considered Australia to be one of the highest priorities in our development plans.�

Carey added, �We are looking forward to the opportunity to operate properties in Australia and bring Outrigger�s international marketing network to Queensland. We see a tremendous opportunity in resort expansion on the Gold Coast, paced by a strong local economy and a heightened awareness of Australia's attractions,� Carey said. �We also are pursuing other development or management opportunities in Australia, and are optimistic about the marketing and operating synergies we hope to create for Paradise Apartments and Outrigger Hotels.�

According to Carey, many properties in Outrigger�s growing portfolio�Fiji, French Polynesia and Hawaii�are in destinations popular with Australian travelers. This will create opportunities with the new Australia resorts, which also currently appeal to Australia and New Zealand vacationers. As increasing numbers of Americans seek new vacation experiences, Carey believes that Outrigger�s properties in the Pacific Islands, and now Australia, will continue to attract U.S. travelers through its established marketing network.

A Growing Leisure Market

Paradise Apartments manages properties in Surfers Paradise, a �coastal playground� some 40 miles (64 km.) south of Brisbane on the east coast of Australia, in Queensland. The Gold Coast area is often compared with Waikiki because of its climate, scenery and variety of leisure activities.

Stephen Gregg, CEO of the Queensland Tourist & Travel Corporation (QTTC), said he is confident the visitor market will strengthen in the coming years. �The upcoming Olympic games in Sydney will provide an immense opportunity to promote Australia and its various states throughout the world,� Gregg said. �The QTTC and the other Australian tourism boards are looking at ways to develop appropriate promotional opportunities�not only during the Olympics, but in the months leading up to and following the games. I am pleased that a company with the strength and experience of Outrigger Hotels has chosen to enter the Australia market.�

Paradise Apartments was established in 1985 by Maurice Frawley and his family. It has grown to become one of the most significant apartment operators in Australia's holiday capital, Surfers Paradise.

"We searched many months for the ideal partner," said Frawley, Managing Director of Paradise Apartments. "With Outrigger we have a veteran hotel group with a deep understanding of the Pacific as well as decades of experience managing and marketing highly successful Pacific resorts. They are a family-owned company, just as we are. They also have a clear understanding of how we see our roles and responsibilities as owners and employers. We're confident the new joint venture is a perfect fit," Frawley said.

Resorts Offer Recreation and Amenities

The three Paradise Apartments properties now in operation offer a full range of services and amenities; and the luxurious Sun City Resort, which the joint venture will provide sales, marketing and reservations for when it opens in mid-1988, will also offer complete resort services.

The Cosmopolitan is in the heart of Surfers Paradise, a short walk from the beach. It has 59 one- and two-bedroom apartments with fully equipped kitchens, two swimming pools, and is surrounded by shops, restaurants and nightlife.

The oceanside Paradise Centre, with 192 units, offers one-, two- and three-bedroom configurations. Its two-acre beachfront site has lawns and gardens, two swimming pools, a shopping and dining complex, tennis courts, putting greens, a business center and other attractions.

The beachside, 245-unit Peninsula boasts spectacular ocean and mountain views from its one-, two- and three-bedroom units. All units are tastefully furnished, with fully equipped kitchens and modern amenities. Guests can enjoy three swimming pools, spas, saunas, tennis, squash, a restaurant, and a business center.

Opening in mid-1998 will be the luxurious Sun City Resort, in the heart of Surfers Paradise. The 311 spacious one-, two and three-bedroom suites will provide panoramic views of the Pacific Ocean and beaches of the Gold Coast. Guests will enjoy a swimming lagoon, water slides, exotic fish ponds, theme restaurants and other amenities. A business center, tennis courts, sauna and fitness center will complete the project's offerings.

Outrigger Hotels & Resorts is Hawaii�s largest hotel company and the 28th largest in the U.S., offering 28 hotels and resort condominiums in Hawaii. It has become a major player in the Pacific resort scene, with projects open or currently underway on Guam, Palau, Tahiti, Bora Bora, Fiji and the Marshall Islands. Last year marked the company's 50th anniversary of doing business in Hawaii. Outrigger's affiliate, Outrigger Lodging Services manages nearly two dozen hotels and resorts throughout the U.S. mainland.

For reservations or information, call Outrigger Hotels & Resorts toll-free at  1-800-OUTRIGGER (1-800-688-7444) within the U.S., Guam and Canada. Within Australia, call 1-800-686-939. Outrigger�s toll-free number also is available from 130 countries via AT&T�s new Direct 800© Service. Elsewhere call 303-369-7777. Internet users can access information on Outrigger via the World Wide Web at www.outrigger.com. Outrigger's e-mail address is [email protected]