TAHL Makes Strategic Expansion Into Northern Territory

Tourism opportunities see TAHL add two hotels in key NT regional centres

26 October 2000: Australia's largest hotel owning company, Tourism Asset
Holdings Limited (TAHL), has acquired two hotels in the key Northern
Territory centres of Alice Springs and Katherine.

They are TAHL's first hotels in the Northern Territory and will expand the
company's network to 48 hotels* and 6,071 rooms in Australia and New Zealand
(*the portfolio includes the purchase of 12 hotels, approved by shareholders
at a recent general meeting, and two hotels under construction).

The Katherine and Alice Springs hotels were purchased for A$7.2 million from
Ferrier-Hodgson, liquidators of the former Frontier hotel group. Colliers
Jardine Hotels & Leisure was the handling agent.

The two hotels are the All Seasons Frontier Oasis Alice Springs and the All
Seasons Frontier Katherine. The properties are currently managed by Accor,
who will be retained as long-term managers of the hotels. Accor is the
largest international operator in the Northern Territory with a total of
five hotels – in Darwin, Alice Springs and Katherine.

Both hotels are considered amongst the leading hotels in the two centres.
The 3½-star All Seasons Frontier Oasis Alice Springs has 102 rooms with a
range of resort facilities, including two swimming pools, as well as
conference and function facilities for up to 100. The 3-star All Seasons
Frontier Katherine has 100 rooms, including self-catering units, restaurant,
swimming pool and tennis court.

The two hotels will be rebranded to Accor's Mercure brand – the largest
international hotel brand operating in Australia, with 41 hotels and
resorts.

Commenting on the acquisition of the two hotels, TAHL Managing Director,
John Hickey, said that the timing of the acquisition was ideal, with all
forecasts indicating strong future growth for both international and
domestic visitor numbers to the Northern Territory.

The Northern Territory in general and Alice Springs and Katherine in
particular have been at the forefront of tourism growth in Australia over
the past year, said Mr Hickey.

Latest statistics showed a 42% increase in visitor numbers to Katherine in
the 1998-99 year compared to the previous year, while Alice Springs recorded
a 17% increase for the same period. All indications are that future growth
of 7% – 10% can be expected over the next few years across the Northern
Territory.

The effect of the Olympic Year, where the Northern Territory received
significant coverage from international media visiting the country, and with
the current Crocodile Dundee advertisements having such an impact in the
USA, we are confident there will be continued strong performance in the
inbound market.

2/ TAHL acquires two hotels in the Northern Territory

In the local Australian market, the largest domestic tourism initiative –
See Australia – is set to be launched next month, with Accor the exclusive
premium hotel sponsor. This will provide a great platform to further boost
domestic leisure travel and conference and incentive business to the
Northern Territory.

Importantly, the top three inbound markets for the Northern Territory –
Europe, UK and North America – are where Accor has its greatest presence.
Accor is also strong in emerging markets in Asia.

The hotels in Katherine and Alice Springs will be part of an Accor network
that is not only the most extensive in the Northern Territory, but also the
most extensive in Australia, which will have an important impact on the
hotels' future performance.

TAHL is listed on the Australian Stock Exchange.

FOR FURTHER INFORMATION CONTACT:

John Hickey
Managing Director
Tourism Asset Holdings Limited
Level 46, MLC Centre
19-29 Martin Place
Sydney NSW 2000
Phone: (612) 9367 0804
Fax: (612) 9367 0499