“Swiss Quality Hotels“ (SQHI), created on 1st January, 2004, from the former “Top Welcome Swiss Hotels“, is delighted to announce that its highly proactive strategy has led to yet further success. The number of hotels belonging to the sales and marketing organisation has increased to 69 hotels in Switzerland, Germany and Austria.

Amongst the new members are:

Hotel Coronado****, Mendrisio (to open in November 2005

Hotel Acquarello***, Lugano

Hotel an der Aare***, Solothurn (to open in January 2005

Hotel Drachen***, Bale

Garten-Hotel Sandi***, Bad Ragaz

Hotel das Reinisch, Schwechat-Vienna

SQHI is also delighted to be able to welcome the Hotel Das Reinisch****, Schwechat-Wien – its first Austrian member – to the group. “The expansion is progressing at full steam” according to the Managing Director of SQHI, Eva Fischer. Discussions with hotels in, amongst others, Italy, France, Austria and Germany are currently taking place. Two well-known German establishments, the Wittelsbacher Hof in Garmisch-Partenkirchen and the Königshof in Cologne already joined forces with SQHI at the beginning of 2004.

As a result of a new collaboration, members of the TCS and BlueSplash organisations are now also able to benefit from attractive and exclusive offers, with stays at SQHI hotels at preferential rates. The collaboration with the TCS extends beyond Switzerland, including a total of 24 well-known European automobile associations such as ADAC, plus AAA (America) and CAA (Canada). BlueSplash is a platform of the Blue Cross which provides its members with a range of reductions on services such as care hire.

The extension of the distribution network direct via “Cendant” and other worldwide suppliers has also had a positive effect on the business. The dramatic increases in turnover registered at the SQHI headquarters in Stäfa can be traced back in particular to the contracts with these suppliers, as well as to the successful launch on the Chinese market, with more than 300 groups in the current year. Similar pleasing results are also as a result of the SQHI reservations system “QualityOnline” xml-Interface-Link with a range of tour operators worldwide, as introduced this year. A satisfied Eva Fischer also believes the dramatic increase in the volume of reservations is a direct result of this move.

“Swiss Quality Hotels” – created on 1st January, 2004 from the former “TOP Welcome Swiss” hotels has already shown outstanding results in the first 6 months of operation from 01.01.04 to 30.06.04, with an increase in turnover of 60.9% achieved by SQHI for its member hotels. Delighted with the first six months, Eva Fischer sees the extremely pleasing results as clear proof that the move from “TOP International Hotels” was the right one to make. As less money had to be paid to the former licensee, more funds were available to increase sales and marketing activities – one of the main reasons for the pleasing results, according to the managing director of “Swiss Quality Hotels”. The head office of “Swiss Quality Hotels” is also delighted that the former “TOP International” member hotels have remained loyal to the new organisation, in spite of active efforts in July 2003 by “TOP International” to retain its members.

The international partnership with Utell (Pegasus Solutions), the largest hotel provider worldwide, has proved to be an important one for “Swiss Quality Hotels”. As a result of this collaboration, “Swiss Quality Hotels” is registered in a database of around 5000 hotels worldwide, all under one roof (GDS code UI), thus the international aspect so important to the hotel industry has been maintained on a professional basis and remains guaranteed. Furthermore, the move from “TP” to “UI” has had a positive effect on turnover. The head office in Stäfa is very active in all aspects of sales and marketing and also has agreements with a range of tour operators, all able to use SQHI’s own online booking system to make reservations. The use of the latest XML interface to communicate with these tour operators has also helped towards the increase in turnover. Furthermore, Eva Fischer lists individual monitoring of the competition, or benchmarking, by the head office as one of the strengths of “Swiss Quality Hotels”. With personal service and marketing through a range of booking channels, SQHI is more than simply a traditional global electronic GDS system.

The first weeks of the second half of 2004 have also shown pleasing results. Should the world economy remain buoyant and unaffected by potentially negative world events, “Swiss Quality Hotels” looks forward to ending the year with positive results.

Up and running since January 1st, 2004, "Swiss Quality Hotels" has had a good start all-round to the new year. The list of new members also includes two properties in Germany and the new website and the first SQH hotel guide have both received positive reactions.

On January 1st, “Swiss Quality Hotels” took over official operation of the former "Top Welcome Swiss Hotels". The first interim report shows really positive results. The new start under the new brand name saw a smooth and successful transition in all areas of operation. All of the members hotels are now fully integrated and can be booked in the various GDS systems under the GDS code UI, with the additional comment "Swiss Q Hotel".

The “Swiss Quality Hotels” sales and marketing organisation has also been able – within this short space of time – to attract the following new members:

The two hotels in Germany also represent the first step abroad. "Swiss Quality Hotels" is aiming for further expansion in Europe and has thus accordingly increased activity in this area.

Equally as successful was the launch of the newly designed website www.SwissQualityHotels.com. The clear layout and easy to use menu are particularly attractive features of the modern design. Bookings require only a few clicks of the mouse and attractive packages, special offers, seminar and conference information, highlights with seasonal information and offers as well as general news can also be easily found under the various headings.

Also out on time was the first "Swiss Quality Hotels" guide. This comprehensive 100 page 2004 hotel guide includes detailed descriptions of all member hotels, as well as important and useful information such as details about SQH partners, the tour operator booking engine "QualityOnline", the Q seal of quality, etc. The SQH 2004 hotel guide can be obtained, free of charge, from the SQH offices in Stäfa.

Swiss Quality Hotels offers a wide range of hotels in well-known cities such as Basle, Berne, Geneva, Lugano and Zurich, as well as in famous holiday resorts such as Davos, Grindelwald, St. Moritz and Zermatt.

As the first hotel cooperative in Switzerland, Swiss Quality implemented its own strict hotel classification criteria in 2001, providing a clear idea of the products right from the start. The Swiss Quality classification of its member hotels is as follows: “Swiss Q Economy”, Swiss Q Value”, “Swiss Q Superior” and “Swiss Q Excellence”.

Swiss Quality Hotels represents individual hotels with a wide range of facilities and varied price structures. This, together with the stamp of quality from Switzerland Tourism, ensures our common goal – satisfied guests!

Swiss Quality Hotels has also signed an agreement with the largest worldwide hotel provider - Pegasus Solutions' Utell Services. As of December 4th, Swiss Quality hotels can be booked in the various GDS systems, using the GDS code UI (formerly TP).

All member hotels are listed under the main brand “Swiss Q” (see GDS example below):

• Amadeus: HAZRH/HN-SWISS Q

• Worldspan: HLZRH1FEB2FEB/A/H-SWISS Q

• Galileo: HOAZURICH/N-SWISS Q

• Sabre: HOTZRH/1FEB-2NT2/N-SWISS Q

This agreement with Utell also enables Swiss Quality Hotels to work with “TravelCom”, a commission payment system with numerous advantages for hotels and travel agencies, such as consolidated monthly payments and reconciliation information for non-revenue transactions (i.e. cancellations, no-shows).

The creation of “Swiss Quality Hotels” (SQH), has provided Switzerland with a new hotel sales and marketing organisation – a move unanimously decided upon by the members of TOP Welcome Swiss Hotels at the recent special general assembly. The board of directors and the management of the Swiss cooperative “TOP Welcome Swiss Hotels” were also able to negotiate an early release from their current five year licensing contract with TOP International Marketing Ltd. in Germany.

Comprising of the 70 members of TOP Welcome Swiss Hotels, Swiss Quality Hotels will start operating on December 3rd 2003. As of December 3rd, GDS bookings can be made using the GDS code UI (until then using TP). The newly founded organisation has also succeeded in signing a Global Distribution Systems (central reservation systems) agreement with Pegasus Solutions’ Utell Services, one of the best known partners around. “Swiss Quality Hotels” are convinced that in Utell – which enjoys a high level of recognition worldwide, uses the latest technology and provides attractive conditions – they are able to provide their members with an optimal solution. Together with Utell, marketing activities such as roadshows, workshops, newsletters, travel agency incentives, fam trips, etc. will be worked on and provided.

A new website – www.SwissQualityHotels.com – will go online on January 1st 2004 and will feature numerous changes, improvements and booking aids, as well as a special section for travel agencies. To clearly position its hotels in the market, “Swiss Quality Hotels” uses its own SQH classification categories of Swiss Quality Hotel Excellence, Swiss Quality Hotel Superior, Swiss Quality Hotel Value und Swiss Quality Hotel Economy.

The idea of a potential expansion across borders involving the inclusion of hotels in other countries into the organisation has been positively received by the members of the organisation.

TOP International Hotels of Switzerland has been able to terminate ahead of schedule its license agreement with licensor, TOP International Marketing GmbH of Dusseldorf. In particular, the sale of the license for the TOP International Hotels brand to Golden Tulip Hotels in Amersfoort (NL) meant that the Swiss association was no longer able to enjoy a win-win situation. Eva Fischer pointed to the differences between the corporate cultures at the two companies as one of the major factors behind the change. The manager of TOP International Hotels Switzerland added, “The situation was no longer acceptable to us as a non-profit organization, and we are therefore pleased that our objective of becoming independent by 31 December 2003 has been achieved.”

At the General Meeting on 15 and 16 April 2003, the Board of Directors of TOP International Hotels Switzerland openly informed its members of the difficulty of the situation. As a consequence, those present instructed the Board to find a possible solution. This has now been achieved in the form of the early termination of the license agreement mentioned above, while the seeds for a successful future have also been sown. On 1 January 2004, a new, independent international organization will begin activities with the brand name "Swiss Quality Hotels" (SQH). Following thorough evaluation of the various providers in the electronic distribution segment, SQH has already signed a cooperative agreement with Pegasus Solutions' Utell Services, the world’s largest provider in this business area. Switzerland will continue to constitute SQH’s domestic market, with currently 70 independent, 3-5 star hotels. The company will also continue to pursue the successful marketing strategy implemented so far, although the strengthening and expansion of current activities will definitely be targeted. It has also become clear today that the president of TOP International Hotels Switzerland, Beat Krippendorf, will carry out the same function in the new organization, and the experienced team at headquarters in Stäfa will continue to work for SQHI. Eva Fischer was pleased to announce that, “Thanks to these prompt decisions in terms of the management and personnel, the continuity required for a smooth transition to the new company at the end of the year has been ensured.”