KEMPINSKI EXPANDS PRESENCE IN MIDDLE EAST

Kempinski Hotels & Resorts, the luxury hotel management company, adds a new resort property to its growing portfolio, endorsing its expansion plans in the Middle East and following its recent announcements in Cairo and Abu Dhabi.

The Kempinski Old Palace Resort in Sahl Hashish, on the Red Sea, will be located within an integrated development including seven hotels, an 18-hole golf course, a traditional Arabian village and luxury villas. Sahl Hashish is located 40 km south of Hurghada International Airport and offers a beautiful coastal location, with sandy beach, combined with exceptional diving opportunities. The owner, Rowad Misr Red Sea Hotels Company (a joint venture between the Egyptian Government and private investors) has invested US$ 22 million in the project and opening is scheduled for early 2003. Construction began in November 2000 and work is currently on target.

The Kempinski Old Palace Resort will be built in Arabic and Islamic style, representative of the ornate palaces found in the region. The property will have 220 rooms and suites, three restaurants (traditional Arabic, international buffet and fine dining) and two bars. A unique selling point is an authentic reproduction of the Sunken City, to be built directly in front of the hotel with diving depths up to 20 metres, rendering it suitable for both scuba diving and snorkelling.

This announcement increases Kempinski's presence in Egypt to two hotels, adding to its recently announced new-build hotel within the Cairo Financial Centre (also scheduled to open in 2003). The company also operates a luxury resort in Ajman, United Arab Emirates, which opened in 1998.

Kempinski Hotels & Resorts` portfolio comprises over 30 distinctive properties in Europe, the Middle East, Africa, South America, Asia and Australasia. Each offers superior standards of service combined with a style which reflects the individuality of the property and it`s location.