After a strong start to 2005 the growth continues through the second quarter, with a 12% increase in revenue YTD over the same period last year.

As travelers geared up for their summer vacations, the luxury brand saw an increase in both total reservations and room-nights through June by roughly 10% each. Not only were more people traveling, they were paying slightly higher rates. For the month of June alone, the average rate booked through the SLH system reached $326 per night which brought the average rate YTD up to $315 per night.

"We are thrilled to see luxury travel back in full force. We are fortunate to have a great collection of properties around the world and a loyal clientele that seek out the best wherever they travel," commented Ed Donaldson, VP of Marketing, The Americas.

Destination trends for the second quarter have remained consistent year over year with hotels in the U.S. receiving the most reservations and the UK and France following behind as the second and third destinations. Particularly interesting is the increase in travel to Poland. With the 2004 opening of Hotel Le Regina in Warsaw and guests' ability to still find value in Eastern Europe, travel to Poland substantially increased year over year through the second quarter of 2005.

The Club of Small Luxury Hotels of the World continues to be a strong source of bookings for SLH hotels, as the web-based Club, which allows guests to receive extra personalized service and special offers, now has 20,000 members worldwide. Reservations through clubslh.com and slh.com roughly make up 20% of the brand's total bookings. Reservations made through travel agents remain the overwhelming majority with close to 65% of total bookings originating from the travel trade. The remainder of bookings come through SLH's global toll-free call centers, which interestingly produce bookings with the highest nightly rate.

The Small Luxury Hotels of the World brand is a collection of over 330 independently-owned exclusive hotels in more than 58 countries. Carefully selected for their style and sophistication, Small Luxury Hotels feature award-winning properties including spas, country houses, golf resorts, island retreats, city sanctuaries, and game and wilderness lodges. Reservations can be made at any Small Luxury Hotel by calling toll-free on 800 525 4800 or via the Internet at www.slh.com. Travel agents can use the GDS code LX for LuXury.