The hotel market has developed very favourably during �99 in most markets where Radisson SAS Hotel & Resorts have hotels.  In the Nordic countries (with the exception of Norway),  Belgium, The Netherlands, Germany and south of Europe both room rates and business volume have continued to increase.  The market for Norway was very strong in the first part of the year, but turned softer in the latter part.  For the UK, we experienced a slow-down in the beginning of the year, but the market picked up during the Autumn.

Total operating revenue for �99 reached MNOK 2795 (MEUR 336), representing an increase of 5% for comparable units over �98, while Income before taxes more than doubled from MNOK 221 to MNOK 513 (MEUR 62).  The gross profit margin for �99 was 33%.

Revenue per available room (RevPAR) increased with 3.5% to NOK 557 (EUR 69), while the average room rate was NOK 811 (EUR100), which is 2.5% increase compared to �98. Average occupancy for owned, leased and managed hotels in increased from 68% to 69%. 

As part of an overall strategy, Radisson SAS has sold the real estate of the Radisson SAS Hotel Amsterdam and the Radisson SAS Portman Hotel London. Both hotels continue to be operated by Radisson SAS under long term management agreements.  These transactions generated a capital gain of MNOK 269 (MEUR 33).

Kurt Ritter, President & Chief Executive Officer says: � During the last five years we have committed ourselves to becoming the leading full-service, upscale hotel chain in Europe and the Middle East.  Our greatest achievement has been to be able to match the rapid expansion in the past 5 years from 29 to 125 hotels with improving operational and financial performance. We now cover the globe from above the Arctic Circle to below the Tropical Capricorn.� He adds:� I am optimistic about the company�s future growth plans and financial development.�

In �99, 16 hotels have been opened and/or converted to the Radisson SAS brand.  These hotels are located in Denmark (2), Finland (3), Sweden (4), Iceland (2), Germany (1), Norway (1), Russia (1), The Netherlands (1) and Oman (1).

Agreements to operate or licence 22 additional hotels have been entered into during �99.  This includes the Joint Venture agreement for the management of 3 hotels in South Africa.

One of the highlights of the year includes the addition of a new growth territory, namely South Africa. The signing of a joint venture agreement with TBB Leisure Africa of Cape Town sees the joining of two hotels in Cape Town and possibly one hotel in Pretoria. The hotels will be re-branded Radisson and managed by Radisson SAS, during 2000.  

In addition, Radisson SAS has added the world�s most northern hotel on the island of Spitsbergen to its portfolio, the 99-room Radisson SAS Polar Hotel Spitsbergen, halfway between the North Cape and the North Pole.

Radisson SAS Hotels & Resorts has signed contracts for the management of three new first class, full service hotels in Glasgow, Leeds and Nottingham. This is part of the company�s strategy to develop the UK as a new home market. With the addition of these three properties, the group has now doubled it presence in the UK.

Knut Kleiven, Senior Vice President and Chief Financial Officer comments:� I am particularly happy with the performance of our newly opened airport hotels in Oslo, Manchester and Amsterdam.� He adds:� Besides a strong financial development, I am also glad to announce that we have successfully increased guest satisfaction and employee satisfaction, ensuring the success of our business.�
 

Background Information, Radisson SAS Hotels Worldwide Radisson SAS Hotels Worldwide is a wholly owned subsidiary of Stockholm-based Scandinavian Airlines System (SAS). SAS is owned partly by the three Scandinavian Governments of Norway, Sweden and Denmark, and partly by the private sector interests in those countries. SAS Hotels began life with the opening of the first hotel in Copenhagen in 1960. The airline's hotel operations were initially part of SAS Catering, an in-flight catering company, which later became SAS Catering and Hotels. In 1985 the company was reorganised and renamed SAS International Hotels (SIH), a fully owned subsidiary of the SAS group. Expansion of the hotel network was a key objective, and in 1989 SAS bought 40% of Inter-Continental Hotels, an interest it held for the next three years. This was sold in 1992.        Radisson SAS Polar Hotel Spitsbergen  Longyearbyen , Norway  In 1994, Brussels-based SIH concluded a marketing agreement with Radisson Hotels Worldwide in which no equity exchange took place but which placed SIH in a new and strong position within the marketing, sales and distribution network of the USA-based Carlson Companies, a major player in international travel and tourism, founded by Curtis Carlson, a first generation Swedish-American. As a result of this arrangement, SIH's hotels have been brought under the Radisson SAS brand and has a 30-year agreement to be the head franchisor for Radisson in Europe, North Africa and the Middle East. Radisson SAS owns, operates, manages, leases and franchises hotels and resorts.

The final audited annual accounts will be available from March 13th, 2000.