Announcement to ASX re Profit Expectations

Announcement to ASX re Profit Expectations

06-Nov-2001

On August 31, 2001, the Group released its Annual Results, which included a statement that there had been a marked reduction in the performance of its hotels in the Sydney market due to the effects of the increase in supply that preceded the Olympics. Since then, profitability of the Group’s hotels has been further affected by the events of September 11 and the Ansett collapse.

Compared to the very strong results over the Olympic period, together with the difficult environment in which hotels generally are now operating, there has been a further decline in September and October this year.

Looking ahead, it is very difficult to forecast Thakral’s results for the full year. Currently our best estimates indicate a profit decline of approximately 20%. It is likely that profit for the first half to December 31, 2001 will be lower than for the second half ending June 30, 2002.

The Company is actively pursing cost mitigation policies and marketing initiatives to limit, as far as possible, the effects of the reduced tourism activity on its hotel business.

The Board has, at this date, not been provided with any definitive information relative to the Thakral Family’s statement earlier in the year that it was investigating the possibility of selling its shareholding.

Please provide us with your confirmation of release announcement.

Yours faithfully,



Andrew Horne
Group Company Secretary

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