With the satisfaction of having positioned Hotel Carrera among the most prestigious and best known five-star establishments in Chile, but also having observed a sustained decrease in occupation rates over the years because of the gradual shift of the business and hotel district of the capital to the eastern suburbs, Quiñenco opted to accept a US$23.7 million offer from the Chilean government in 2003. The seventeen story, 25,000 square meter Hotel Carrera building will be used as the new headquarters for the Foreign Affairs Ministry.

It is important to highlight the fact that the building, which for 63 years was considered the bulwark of the civic center of Santiago, will remain part of the national heritage of the country, together with the Palacio de la Moneda, the presidential palace, situated next to the Carrera building.

Outside the capital city, Hoteles Carrera owns - or operates - the four-star Hotel Araucano in Concepción and three other hotel establishments in the north of Chile. These include the La Serena Resort and conference center and the Carrera Club Resorts in Iquique and Antofagasta. The rental contracts on the northern hotels expire in 2004.

2003 Results
The Santiago Hotel Carrera was sold in November 2003 pursuant to an agreement with the Ministry of Foreign Affairs of Chile for UF832,000. Prior to its sale, the Santiago hotel was Hoteles Carrera’s main asset, accounting for approximately 60% of consolidated revenues. Following the disposal, Carrera’s activities are limited to operating a wholly-owned four star hotel in Concepción as well as three leased hotels in the north of Chile. The leases on the northern hotels expire during 2004. Hoteles Carrera reported a loss on the sale of the Santiago hotel of Ch$4,713 million, which mostly explains the net loss of Ch$5,315 million reported for the year 2003.