Tasmania�s icon property Cradle Mountain Lodge is about to undergo a $1.5million refurbishment program which will see P&O Australian Resorts increase the number of premium level accommodations at the celebrated mountain retreat and create the State�s first true alpine spa.

�The 2003 investment program for Cradle Mountain Lodge is part of an exciting two-year enhancement strategy that reflects P&O Australian Resorts� ongoing commitment to Tasmania as a key leisure destination,� explained P&O Australian Resorts� Managing Director, Mark Campbell.

�Since P&O Australian Resorts purchased the Lodge in 1988 we have invested more than $10million, including the ongoing capital investment required to maintain a remote property at the level required to attract international and domestic tourists�, Campbell said.

�Whilst the continual program of upgrade and investment ensured that Cradle Mountain�s original wilderness retreat continued to offer guests a superior Lodge experience, the 2003 works program will see the Lodge reduce guest accommodations to 90 cabins and allow us to reposition the Lodge as a more premium boutique property.�

The $1.5M project which includes the creation of a spa, the conversion of a number of Pencil Pine Cabins into premium suites and some minor refurbishments to the main Lodge, is to be completed late June. The official opening scheduled to co-incide with Cradle Mountain Lodge�s annual food and wine event, Tastings at the Top, which celebrates its 10th Anniversary this year.

�The winter season in Tasmania continues to be a significant challenge,� explained Campbell. �Year-round success is critical to the financial viability of the Lodge. It is envisioned that the new facilities at Cradle Mountain Lodge, in conjunction with the traditional focus on food and wine events, will allow us to boost our ongoing winter marketing efforts.�

�Cradle Mountain Lodge will continue to appeal to the international traveller and domestically, the enhancement program will provide new experiences for the growing short-break market. The new spa complex will also appeal to the leisure traveller who now considers premium spa treatments as an integral part of their holiday�, said Campbell. P&O Australian Resorts created its first signature spa, Dunk Island�s Spa of Peace & Plenty, in 1998 and since that time has developed five unique spa centres.

�Our spa centres take spectacular natural beauty as the starting point and drawing their inspiration from the surrounding environments, provide guests with special indulgences designed to relax the body and revitalise the senses� Campbell said.

�At Dunk Island, Silky Oaks Lodge, Lizard, Brampton and Bedarra islands we have created signature treatments that combine with ancient healings, rituals and natural therapies to allow guests to enjoy spa retreats that harness the power of nature to give renewed vitality � the key ingredient sought by the modern traveller.�

At Cradle Mountain, the pristine wilderness including the impressive collections of Myrtle and Sassafras and ancient King Billy Pines and the dramatic beauty of the surrounding World Heritage area will combine with the legendary warmth and hospitality that is Cradle Mountain Lodge to provide a unique alpine spa experience.

The design brief provided to P&O�s project team was to create a spa facility that would bring Gustov and Kate Weideforer�s original concept of a �forest home� and its classic �where there is no time and nothing matters� into a new age.

�The original Waldheim was built by the now-famous pioneering couple whose passion for this exceptional wilderness area began the heritage movement which eventually resulted in the creation of the Cradle Mountain Lake St Clair National Park�, Campbell explained

�Their �forest home� became the first guest house in the Cradle Mountain area and allowed others to experience the spectacular beauty of the region. It is the same awe-inspiring visions of craggy mountains and towering trees carved by the passing of thousands of years, the mirror-like lakes and the pristine rivers rushing through moss-covered stones that will provide the inspiration for Cradle Mountain Lodge�s Waldheim Alpine Spa�.

The spa building will feature local stone, slate, recycled timber and extensive use of glass opening to dramatic views of the Pencil Pine River and the Cradle Mountain Valley. Oversized open fires, set in feature walls of river rock, will provide crackling log fires that will not only cause stress to melt away in a wave of soothing warmth but act as a centrepiece to a lounge and reception area. Here, steaming cups of herbal teas can be enjoyed in winter and iced-tea made from Lodge-grown herbs will be served in the summer.

An extensive menu of signature treatments is being developed for the Waldheim Alpine Spa, many using Tasmanian alpine ingredients and natural therapy products made by local manufacturers.

With four therapy rooms, including a specialty double treatment room to be used by couples, two wet treatment rooms, a steam room and a large spa bath for hydro therapies, the Waldheim Alpine Spa will allow a new generation of guests to enjoy the restorative powers of the Tasmanian wilderness. King Billy Spa Suites Cradle Mountain Lodge�s refurbishment program will provide for an overall reduction of guest accommodations to 90 cabins and the construction of premium grade accommodations.

As part of the program, Cradle Mountain Lodge will launch two premium suites � to be known as King Billy Suites.

The King Billy Suites, taking their name from the awe-inspiring 1500 year old King Billy Pines that grow near the Lodge, will offer guests secluded and comfortable accommodations with expansive living areas including a large outdoor private deck with a private hot-tub. The interior, based on a contemporary design scheme that highlights premium fixtures and fittings, will have separate sleeping and living areas. The Suites will feature recycled local timbers and hand-made furniture. A king-sized floating bed and an oversized bathroom with a spa of regal proportions are a few of the many comforts guests will enjoy.

The new King Billy Suites will be available from the end of June with tariffs set at $250 per person per night twin share. The rate covers accommodation, sunset canapes and other special inclusions and Cradle Mountain Lodge�s famous full mountain breakfast is also included.

Refurbishment Program Cradle Mountain Lodge�s building program will comply with the stringent environmental regulations prescribed for the ongoing protection of the sensitive environments of the Pencil Pine tourist region. Cradle Mountain Lodge�s existing Environmental Management System (IEMS) which is regarded as Australian best practice, will be employed throughout.

The schedule of works has been devised to minimise impact on both the environment and guests. Cradle Mountain Lodge will trade throughout the 12 week enhancement program with no impact on guests.

The Waldheim Alpine Spa will be constructed behind the Central Lodge, the location allowing for minimal disruption to guest services. As the building will take shape using existing structures and roof lines, it is envisaged that demolition works will be minimal. However, to ensure that guests will not be disturbed by construction activity Cabins located close to the Lodge will be taken off-line during the building program.

The Alpine Spa building program is scheduled to commence in March and will be completed by the end of June - officially opened at the 10th Annual Tastings at the Top event 21-23 June 2003.

Media Contact: Julia Gauci P&O Australian Resorts 61 2 9364 8350 or julia.gauci@poresorts.com

Hi-res images of Cradle Mountain Lodge can be downloaded from the media section of the P&O Australian Resorts website www.poresorts.com Image discs can be provided