HONOLULU, OAHU, HAWAII -- October 4, 2001 - Outrigger Hotels & Resorts has secured its sixth Queensland property in Australia following an announcement by Queensland's largest listed property developer, Forrester Properties, to develop a 160-unit, marina-front hotel at Hervey Bay, 180 miles north of the state capital, Brisbane.

The US$13.3 million Outrigger Hervey Bay Resort will be built on the waterfront within the established Marina Pacific apartment and marina precinct, located south of Hervey Bay's town center. Construction is expected to commence in late 2001, with completion set for late 2002 or early 2003.
When completed, Outrigger Hervey Bay will be the largest resort in the area, featuring a mix of one, two, three bedroom and dual-key apartments, across two six-level complexes. Other features will include a 200-seat conference center, lagoon swimming pool, retail and restaurant facilities and fully landscaped grounds.

"We are very pleased with the momentum that Outrigger continues to build in Australia and throughout the Pacific," said Outrigger's Vice President of Business Development Bill Henderson. "Our expansion in the southern hemisphere is key to the geographic diversification that we want to balance Outrigger's presence in the international market."

Since the terrorist attacks in the United States on September 11, Outrigger's properties in Australia and Fiji are currently the top performing hotels in the chain with occupancies averaging over 70 percent.

Mr. Dave Lawrence, vice-president Outrigger Australia, said the group's move into Hervey Bay reflects Outrigger's strategic approach to securing prime resorts in maturing tourism centers throughout Australia and the South Pacific.

"We are extremely optimistic about Queensland's tourism industry in prime coastal locations, and will continue to seek other resort opportunities.

"Hervey Bay's proximity to south east Queensland's lucrative drive market is well documented," he went on to say. "Combine this with the eco/soft adventure experiences available to visitors with our ability to tap into our international sales and marketing network, and I believe that the future of Hervey Bay's tourism growth is very positive indeed."

Located just three hours drive north of Brisbane, Hervey Bay draws around 600,000 visitors each year. Of this, around 75,000 visitors visit Hervey Bay to watch the annual migration of the South Pacific Humpback whales which use the sheltered bay and warm waters off the coast to give birth to and nourish their young before returning to the Southern Ocean off Antarctica.

Not only a playground for whales, Hervey Bay's is also the gateway to the World Heritage-listed Fraser Island National Park. The largest sand island in the world, Fraser Island draws thousands of domestic and international tourists each year to experience the island's rich abundance of native flora and fauna.

Since entering the Australian market in 1998, Outrigger has secured properties in Queensland's leading tourism centers of Cairns, Gold Coast and Sunshine Coast.

Outrigger's foray into burgeoning tourism 'hot spots' in Australia commenced earlier this year with its appointment to manage the Outrigger 1770 Ocean Beach Resort at the town of 1770/Agnes Water on the central Queensland coast. 

The 1770 appointment followed an announcement in February this year that
Outrigger's Australian arm would also manage the luxurious Kuendu Beach
Resort in New Caledonia. The group will take control of the property in late
2002 following an extensive redevelopment program, and brings Outrigger's
Australian-managed property base to seven.

Outrigger Hotels & Resorts is division of Outrigger Enterprises, Inc., the largest locally owned lodging company in Hawaii and one of the fastest growing lodging companies in the Pacific.