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GHM Ltd. Loses 2 Bali Hotels

Sudden End to Management Contract at Chedi and Serai Properties.

(8/5/2002) General Hotel Management (GHM) Ltd. has made an 11th hour announcement declaring that their management of the Chedi Ubud and The Serai Manggis will end on August 1, 2002.

Alila Hotels

Living up to its name which derives from the word "surprise" in Arabic, Alila Hotels have taken over the properties in the course of a few days between the announcement of the change and the actual handover.

The 60-room The Chedi and 58-room The Serai Manggis are being re-launched as the Alila Ubud, Bali and Alila Manggis, Bali, respectively.

Both companies insist the decision to change management was amicable and mutual.

Personnel Changes

Ms. Alison Fraser, current General Manager at the The Chedi will be moved by GHM to lead the The Andaman, Langkawi, their newest property in Malaysia. She will be replaced in Ubud at the Alila Ubud, Bali by Frederic Flageat-Simon, who is also Managing Director of Alilia Hotels.

Ms. Amanda Pummer has been retained by Alila Hotels to remain at the Alila Manggis, Bali in her current capacity as General Manager for the east Bali resort.

Business as Usual

Alila Hotels, who assumed control effective 01 August 2002, have vowed to maintain the high standards in place at both properties while introducing innovative improvements over time. All existing contracts with overseas travel partners will be honored. The re-branding process of both hotels is expected to be completed by late October 2002.

Alila Hotels, an Indonesian owned management company, also operates the Alila Jakarta in Indonesia's capital, just blocks away from the National Palace.

GHM retains its management of The Legian and The Legian Club, and is reported to be actively seeking new management contracts on the island.