The New Leaders Club Marks First Anniversary with Peak Numbers

Loyalty Progam of The Leading Hotels of the World, Ltd. Reaps Highest ADR in the Industry

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. October 14, 2008

NEW YORK, NY, September 6, 2006. Last summer, The Leading Hotels of the World, Ltd. launched its new Leaders Club program. The results have been nothing short of extraordinary. One year later, the company and its member hotels are reaping enormous rewards, with substantially increased reservations activities and ADR that far outpaces any in the industry.

The redesign of the Leaders Club was based on extensive research into what discerning international travelers want most. The studies conclusively determined that the company's customers did not want a point-based loyalty program, which many said they believed to be off-brand and inappropriate for a luxury name such as The Leading Hotels of the World. The factors that are clearly most important to them are recognition, exclusivity and privilege.

Marshall Calder, senior vice president of marketing, noted, "Rather than trying to compete with organizations like Starwood, whose programs count membership in the millions, The Leading Hotels of the World, Ltd. elected to keep its Leaders Club program small and exclusive."

He continued, "The numbers speak for themselves. With just 30,000 members, sales are up 125% over last year. In the first half of 2006, reservations by Leaders Club members generated USD 21.2 million, up 63% over the same time period in 2005.

"Company-wide for Leading Hotels, ADR was USD 435," he said. "Leaders Club reservations produced a remarkable ADR of USD 566, the highest of any of our other customer groups, and far higher than any other in the industry. For Leaders Club Unlimited members, it was a record USD 712."

Mr. Calder went on, "The program is on target to generate USD 75 million in incremental business for member hotels this year, up from USD 25 million for all of 2005. Nearly 80% of the business from Leaders Club members has come in the form of a first-time visit to a given hotel."

"Our Leaders Club members are passionate, highly motivated international travelers. They have responded enthusiastically to what the new program offers, and we are committed to providing them with exceptional levels of service and satisfaction."

Leaders Club is a three-tiered program. At all three levels, members receive room upgrades, early check-in, late check-out, and welcome gifts. A primary benefit is a personal information registry, which is shared among all Leading Hotels to ensure that every hotel can deliver custom-tailored service, with every stay.

Other benefits include shipboard credits when sailing with Crystal Cruises, and rebates of up to 5% on trips arranged through the Adventure Collection.

At the fee-based Access and Unlimited levels, guests are assured of guaranteed upgrades at the time of booking - something unique in the industry. They also receive benefits when staying at Relais & Ch^ateaux hotels. This represents an unprecedented degree of recognition across two of the world's most highly acclaimed brands in luxury hospitality.

Access and Unlimited members are also entitled to the services of the Leaders Club Concierge, to assist with special requests, reservations, tickets to elite events, access to exclusive places and experiences... and more.

Mr. Calder concluded by saying, "Leaders Club is not just a hotel program. It is a program that engages our best customers with The Leading Hotels of the World, and it is the key source for their luxury travel and lifestyle needs."

"In short, the new Leaders Club is all about customer care and service. Whether it is a guest's first visit to a Leading Hotel or the 50th, Club members will be recognized and acknowledged across the entire The Leading Hotels of the World brand."

The Leading Hotels of the World, Ltd. is the prestigious luxury hospitality organization representing more than 430 of the world's finest hotels, resorts and spas, and is the operator of www.lhw.com - the online source for your luxury lifestyle. As the largest international luxury hotel brand, the firm maintains offices in 24 major markets across the globe.

Since 1928, the company's reputation for excellence derives from the exacting levels of quality it demands of its members, each of which must pass a rigorous, anonymous inspection covering 1,500 separate criteria.

High resolution images of member hotels are available for downloading at www.lhw.com/press. For reservations and information, visit www.lhw.com or telephone toll-free from the USA, Canada, Puerto Rico and the US Virgin Islands, (800) 223-6800.

Contact: Karen Preston, Public Relations Manager

Tel: (212) 515-5631

E-mail: [email protected]