Owner of the Lanesborough, Lanesborough Management Limited, Dropping Rosewood for St. Regis Hotels & Resorts / May 2002

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Owner of the Lanesborough, Lanesborough
Management Limited, Dropping Rosewood
for St. Regis Hotels & Resorts

May 14, 2002 - Rosewood Hotels & Resorts said today its relationship with The Lanesborough in London, will end May 29. It has managed the renowned hotel since it opened in 1992. The announcement was made by Jim Brown, president, Rosewood Hotels & Resorts.

"The Lanesborough is a truly unique hotel that fit especially well within the Rosewood collection," said Brown. "When you are running a business, however, there sometimes comes a point where you have to think with your head and not just your heart. We recently reached that point with the owners of The Lanesborough, and we had to face the fact that we could not agree on terms that made business sense for us," he added.

Brown said that Rosewood's business strategy for the future is to enter only into long-term management agreements, not shorter arrangements such as the 10-year contract it has had with The Lanesborough.

The Rosewood president said his company still enjoys a good relationship with Lanesborough Management Limited, which he said he admired for making a commitment to own one of the finest hotels in the world. He also expressed pride in Rosewood's contribution to establishing The Lanesborough as the preeminent hotel in London and one that has achieved the highest revenue per available room (REVPAR) in Europe year over year.

"Because of our stewardship during the past decade, The Lanesborough is well positioned to continue as a leading European hotel," Brown said. "Rosewood is proud of what we have accomplished in London, and we look forward to returning there with a new property in the near future. We wish The Lanesborough well, and we eagerly await the time when we can become friendly competitors.'

Brown also said that in appreciation of the hard work and achievements of the hotel employees, Rosewood will extend its complimentary room policy to all staff of The Lanesborough through 2003.

While Rosewood was managing The Lanesborough, it was an annual recipient of the world's most prestigious hospitality industry and consumer travel awards, among them a host of first place listings in 2001 including, #1 in the UK by Zagat Hotels & Resorts Survey; #1 in Europe by Institutional

Following the expiry of the initial management contract with Rosewood Hotels and Resorts, the owner of the Lanesborough - Lanesborough Management Limited - held a competitive tender for the continuing role.

They have now signed an agreement with St. Regis Hotels and Resorts to manage this landmark hotel as from May 29th, 2002.

Lanesborough Receiving Offers of UKpound 75 million Up to 120 million / April 2001

Five Former Rosewood Hotels Executives Join Mankarios at St. Regis Hotel Chain / August 2001

Investor; #1 in the UK by Harper's Hideaway; #1 in England by Conde Nast Traveller UK.

At the same time Rosewood's relationship with The Lanesborough is ending, it has entered into management contracts with three new properties, bringing the collection total to 16, with additional projects to be announced by the end of the year.

Rosewood Hotels & Resorts, headquartered in Dallas, Texas, manages properties on five continents worldwide, including The Carlyle in New York City, Badrutt's Palace in St. Moritz, Switzerland, Las Ventanas al Paraiso in Los Cabos, Mexico, and Hotel Seiyo Ginza in Tokyo. Each property is pre-eminent in its region and artfully designed with local inspiration to create a sense of place(R). Throughout its 22-year history, Rosewood has delighted guests and elevated hospitality to a new level by providing discrete, personal service and demonstrating remarkable attention to detail.

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Contact:
Rosewood Hotels & Resorts
Julie Zirbel
+1-214-880-4232
[email protected]
http://www.rosewoodhotels.com

Louise Johnson
Aspect Communications
Unit 2, Stable Yard
16 Balham Hill
London SW12 9EB
T: 020 8673 2020

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