|CHICAGO, IL, January 09, 2001 - Taking an initial and transforming
step to strengthen and sustain independent hotels in the crucial competition
with global chains, the recently formed IndeCorp Corporation has acquired
two global hotel groups, Summit Hotels & Resorts and Sterling Hotels
& Resorts, it was announced today by Peter Cass, President and CEO
of IndeCorp and President and CEO of Preferred Hotels® & Resorts
US$200 million for its brands’ member hotels and resorts for calendar year
|Summit and Sterling, acquired from
Pegasus Solutions, Inc. (Nasdaq: PEGS) for approximately US$12 million,
are joining Preferred under the IndeCorp holding company umbrella. The
three subsidiaries, consisting of distinctive wholly owned independent
hotels, will more than double IndeCorp’s resource base to approximately
US$29 million. The added revenues provided by multiple brands will greatly
expand IndeCorp’s ability to offer state-of-the-art shared services in
such essential and costly areas as customer relationship management and
e-commerce, as well as procurement and other back-office functions. IndeCorp,
in turn, is projected to generate revenues of
President & Chief Executive Officer
Preferred Hotels® & Resorts
Summit has 167 independent hotel members in 45 countries; Sterling,
141 in 30 countries. That more than triples the total number of independent
hotel properties under IndeCorp to 418, including the 110 under the Preferred
brand, throughout the world.
“The added resources that come from IndeCorp’s operating scale can make
a defining and pivotal difference for independent hotels competing against
global chains,” Mr. Cass said. “We recognized the opportunity, developed
the strategy based on industry research by PricewaterhouseCoopers, launched
IndeCorp in September with Preferred as the initial brand, and some three
months later are adding our first acquisitions. The world is changing and
independent hotels, while retaining their high standards and charismatic
individuality, are changing with it. We are multiplying their power exponentially
through IndeCorp’s expanded resources, reach, capabilities and technological
expertise. It is a strategy that sustains independents, and builds for
their future. We are looking forward to other acquisitions and/or mergers
in the near term,” he said. “IndeCorp is the structural answer to
increasing the competitive positioning of independent hotel brands,” said
Peter Aeby, Chairman of the Board of IndeCorp. “The high standards
of independent hotels will not change. Their individuality will be preserved.
What will change is the force behind their sales and marketing efforts—enhancing
consumer awareness and brand recognition on a global basis,” he said.
Summit and Sterling are ideal acquisitions for IndeCorp — they add international
value, have complementary cultures and governance, and provide global sales
and marketing resources. Summit is a prestigious brand of independent hotels
and resorts in city centers and major leisure destinations around the world.
Sterling is a reservations/representation company serving a diverse global
collection of independent luxury properties.
Pegasus Solutions, Inc. will continue to provide reservations technology,
call center services, electronic distribution, and commission processing
to Summit and Sterling hotel members. In addition, IndeCorp has chosen
Pegasus to provide these same services for Preferred, effective July 2001.
IndeCorp will manage the vendor relationships for all brands as well as
provide value-added reservations services such as account management, training,
revenue management and data management.
In addition to achieving the critical mass needed to compete in the
global marketplace, the IndeCorp model allows for increased operating scale
resulting in greater efficiencies and savings, the aggregation of capital
for technology, and more attractive financing opportunities. At its core
and through its cumulative strength, IndeCorp provides independent hotels
with the resources they need—and cannot otherwise secure—while fiercely
protecting their independence, individuality and diversity.
Each brand under IndeCorp will have its own quality standards and market
position, as well as its own distinctive culture. IndeCorp will protect
these distinctive qualities while distinguishing, reinforcing and promoting
brand strengths with added resources, including marketing technology.
The benefits provided to independent hotels through IndeCorp include:
At the same time, the multiple brand model works for consumers, preserving
the “culture of choice” vacationers and business travelers want. Consumers
will have access to new, heightened levels of information, and be served
by the most sophisticated Internet and reservations systems. They will
also be able to take advantage of new marketing partnerships and programs.
Proven brand management from a company with the highest average production
per independent hotel member;
Proven reservations account management;
State-of-the-art e-commerce solutions, customer relationship management
and sales management technologies;
Expanded global marketing and sales coverage; and *Successful and innovative
brand partner programs.
that includes an annual, third-party unannounced audit of 1,600 standards
and practices. Preferred generated more than US$100 million in revenue
for its hotels and resorts in the fiscal year ending June 30, 2000. Headquartered
in Chicago, the company has sales offices in New York, Los Angeles, San
Francisco, London, Paris, Milan, Zurich and Frankfurt.
| Travel agencies will find important
efficiencies and convenience through a centralized, consistent commission
payment program, while streamlined negotiations procedures across the board
will enhance corporate purchasing programs.
Meeting planners and others booking facilities for groups will have
access to the broadest range of options from a single source through IndeCorp-level
sales representatives. Clear lines of communication and accountability
will also greatly facilitate meeting an account’s special needs.
At the heart of the strategy and serving all audiences is the significant
variety and greatly expanded number of properties and destinations available,
coupled with brand-level standards of quality and service.
The Preferred Board of Directors approved the IndeCorp business model
on July 23, 2000, and Preferred shareholders unanimously approved the creation
of IndeCorp as an umbrella holding company on September 20, 2000.
Headquartered in Chicago, IndeCorp is designed to protect and sustain independent
hotels and independent hotel brands through a range of state-of-the-art
shared services for its wholly owned subsidiaries.
Established more than 30 years ago, Preferred Hotels® & Resorts
Worldwide is a global brand of more than 110 of the world’s finest independent
luxury hotels and resorts. To qualify as a Preferred hotel or resort, each
property must adhere to Preferred’s Standards of Excellence ™, an exhaustive
quality assurance program
Geoff Andrew Appointed Managing Director
of Summit Hotels & Resorts
London (May 2000) - Summit Hotels & Resorts has appointed
Geoff Andrew as its new managing director, following Summit’s acquisition
by Pegasus Solutions in April this year.
Andrew, who will take up his new position in London on
July 1st, is responsible for the global positioning of the Summit brand.
He is also a senior vice president of Summit’s new parent company, Pegasus
Solutions. Andrew replaces Summit’s outgoing managing director, Michael
Commenting on his new role, Andrew said “In the ten years
since Summit was established, it has evolved into a luxury brand with its
own style and personality and is recognised as a unique collection of the
world’s finest hotels. We intend to build on this to establish Summit’s
international reputation as one of the world’s premier brands and marketing
providers for independent hotels”.
He added “Summit is in a strong position to achieve this
through our new association with Pegasus Solutions, bringing unparalleled
access to some of the most cutting-edge technology-based products and services
in the hotel industry.”
Prior to his new appointment, Andrew was senior vice president
in the Americas for Summit’s former parent company REZsolutions. His responsibilities
covered revenue management in the North and South American region, hotel
account management, hotel development, and technology sales and travel
industry initiatives throughout the region.
He joined Utell in 1989, first in London as marketing
information manager where he was instrumental in establishing market research
as an integral function of the company’s marketing planning process, as
well as the strategic development of Utell’s brand identity. In 1993, he
transferred to the Americas head office in Omaha as director of marketing
for Utell, and was named vice president business
operations in 1995, responsible for reservations, data
management and customer service for the region. He subsequently joined
Anasazi Travel Resources (at that time a REZsolutions business unit) as
vice president, worldwide account management based in Phoenix.
Summit Hotels & Resorts, headquartered in London, is a collection
of 167 luxury, independently owned hotels located in more than 125 city
centers and resort destinations worldwide. Each individual property in
the Summit brand has an established reputation as being among the world’s
finest hotels, offering exceptional levels of service and facilities.
Sterling Hotels & Resorts is a collection of 141 independent luxury
hotels in 30 countries, located in key business and resort destinations
throughout the world.
Dallas-based Pegasus Solutions, Inc. is a leading provider of end-to-end
reservation distribution solutions to the hotel industry worldwide.