REEF HOTEL CASINO CAIRNS POSTS BEST-EVER PERFORMANCE

Reef Hotel Casino Cairns (Australia) trades 17% above budget and 27% above same period last year on back of strong inbound gains from Singapore and Hong Kong In a remarkable turnaround, the Reef Casino Trust has announced a AUD$6.8 million net profit (after tax) for the year 2000.

At the AGM of the Reef Casino Trust, held in Cairns today, it was announced that the Trust had posted a AUD$4 million profit for the second-half of 2000, following a AUD$2.8 million profit in the first-half.

Reef Casino Trust is a single purpose trust that is listed on the Australian Stock Exchange. Its main asset is the Reef Hotel Casino complex in Cairns, Queensland, which comprises the Reef Casino, the 5-star 128 suite Sofitel Reef Casino, a conference centre, conservatory, night club and various restaurants and bars.

In late-1999, a recapitalisation program was initiated by the new joint-venture partnership of Casinos Austria and Accor, Australia's largest hotel group and part of the global Accor hotel and tourism company.

The turnaround was based on strong results in the second half of 2000, and efficiencies brought about by the installation of the new joint-venture partners.

The positive trend has continued into 2001, with the Reef Hotel Casino trading 17% above budget and 27% above the same period in 2000 for the first four months of 2001.

A number of initiatives have been introduced to improve the performance of the complex. New restaurant facilities, an upgrade of all rooms and suites in the Sofitel, and greater emphasis on loyalty programmes such as the Reef Club and Accor's Advantage Plus scheme have attracted both new patrons and greater visitation from existing patrons.

The Trust has committed to further capital investments in state-of-the-art electronic gaming machines, though Chairman, Ben Macdonald, emphasised "Table games or live gaming is the traditional format in casinos. We are encouraged by the increased activity in this area following a re-focus on the premium player program last year. We welcome patrons at the lower end of the 'high rollers' market drawn from both domestic markets and selected overseas ones, including Singapore and Hong Kong."

The overseas visitors had been attracted by the quality of the Casino and hotel, the attraction of Far North Queensland and the good-value of the Australian dollar compared to most overseas currencies.

The Chairman also highlighted the role of Sofitel in the complex's successful year: "Our accommodation, conference and food and beverage services play an integral role in the overall success of the complex's bottom-line as they are significant drivers of increased visitation and patronage."

In 2001-2002 major emphasis would be placed on attracting the MICE sector, with the destination and hotel complex ideal for incentive and conference groups.

Accor is the largest provider of accommodation in the Cairns region, with six hotels in the city and in Palm Cove.