As of January 12, 1999, the Danubius Hotels Group has been operating in a changed organizational structure. Of its two subsidiaries specialized in two different activities, Hungária Szálloda-Ingatlankezelő Rt. is engaged in the management, development and letting of real properties, while Danubius Szállodaüzemeltető és Szolgáltató Rt. is engaged in the operation of leased hotels.

Advantages expected from the reorganization:

• The accelerated improvement of the achievable profitability is expected of the individual management of the two different activities.
• The Group can utilize its full strength in areas such as marketing, purchasing and information technology.
• The executives of the various fields can focus on the maximum exploitation of the assets of the Group, on the one hand, and on the provision of highest quality services and operation in the hotels, on the other hand.
• Efficiency may be further increased and costs may be further cut within the whole Group.
• It provided a possibility for the establish-ment of new business activities within both the operating and the real property management companies.