Investment Conference; Edging Ahead with
Aptech Business Intelligence Tools
|PITTSBURGH, June 18, 2002 – Wall Street passed judgment on the hotel
industry at this year’s annual New York Hospitality Investment Conference
and named two top performers by virtue of their success in raising profit
margins through controlling expenses. Starwood Hotels and Resorts
(NYSE: HOT), with more than 740 properties in 80 countries, was tapped
by Wall Street as one of the most respected companies in the segment thanks
to its effective reduction in expenses since 9/11. Host Marriott
(NYSE: HMT) was also said to be an outstanding REIT by virtue of holding
its value through cost control. Both use high-level accounting and
business intelligence tools to target operating areas where expenses could
be trimmed. One thing held in common by Starwood and Host Marriott
is that each has installed the Execuvue® enterprise business intelligence
system from Aptech Computer Systems, Inc.
Held from June 2nd to 4th at the Marriott Marquis Hotel in New York City, the conference, always an excellent place to candidly take the industry’s financial temperature, was well attended by investment analysts from Ernst & Young LLP, PricewaterhouseCoopers LLP, Merrill Lynch, Goldman Sachs & Co., Morgan Stanley, as well as leading operators and investors.
Rex Warren, Starwood’s Vice President of Finance for North America said recently, “The hospitality industry has to take a fresh view of things in the current economy. One of our biggest challenges is learning to rely less on annual budgets, and perform more on our real-time revenue stream. Starwood is way ahead of the industry in this.”
Warren also noted that access to better information has caused Starwood’s senior operational executives to think more proactively. Tools like Execuvue enable this. “The typical financial thinking says ‘Here’s the way our system can show the numbers, so here’s how you’re going to get them,’” said Warren. “With Execuvue we flipped that on its head and said to our senior executives, ‘We can present the data any way you want.’”
Host Marriott also chose Execuvue to help understand operational costs of $8 billion in total assets at Host Marriott’s 126 upscale properties. During Phase I of the implementation, underway now, Execuvue will combine and standardize Smith Travel Research data that Host Marriott corporate executives in operations and sales already have in separate databases. Without re-keying data, Execuvue will be used to standardize property evaluations enabling the company to categorize markets and equalize performance measures. Host Marriott currently monitors key “top markets” for ranked performance reporting. Aptech’s Execuvue stimulates ad hoc queries and reporting, and dramatically collapses the time and cost of rapid decision making by managers from the regional level to the executive suite.
Other top management firms, such as Concord Hospitality Enterprises Company and American Property Management, are also demonstrating the value of enterprise business intelligence.
Concord Hospitality controls costs with daily financials
Mark G. Laport, president and CEO of Concord Hospitality Enterprises Company, explains, “With Concord’s hands-on management style instant business analysis is essential to our strategies and decisions. It is a critical part of the engine driving our company’s growth. Every night Concord compiles its financial data after receiving each property’s numbers via an Internet download using Webvue®, an application from Aptech Computer Systems, Inc. Since we operate with a daily accounting close, the numbers are always same-day, and executive oversight and corrections take place in real-time rather than month-to-month. We put all our data in an Aptech Execuvue business intelligence system to analyze operating trends as they happen. With Concord, it’s all about spotting trends early enough to be proactive. This allows us to control costs.”
American Property Management saves $3,000 per month using the Internet
Last year, controllers at American Property Management’s 28 properties were maintaining their own books, running daily audit reports, and then sending the information back to headquarters in massive envelopes for consolidation. “We did not have our corporate operational picture until the middle of the next month,” explains Kim Dailey, American Property Management’s vice president of hotel accounting. “To turn things around we implemented the Webvue Internet delivery system from Aptech. Now we are turning around our consolidated financials in under seven days. The savings in FedEx courier costs alone is $3,000 per month. We also use Execuvue, Aptech’s business intelligence system, to compare property performance, locate trouble spots and control costs. The new technology makes American’s inter-company communications much smoother and more timely, and does away with the paper-filled packets of daily numbers. Aptech’s Webvue Internet delivery system allows American to design its own on-screen data template that permits properties to enter daily numbers quickly and easily. Hotel financials are then automatically sent to headquarters for consolidation.
About Aptech Computer Systems, Inc.
For more information, visit booth number 1130 HITEC, or contact: Aptech Computer Systems, Inc. 135 Delta Drive, Pittsburgh, PA 15238; (412) 963-7440; FAX (412) 963-9799; or access their Web site at www.aptech-inc.com. BOOTH NUMBER 1130 at HITEC.
Attend a live presentation at HITEC, entitled “Flash! - Handheld Business Intelligence Rapid Response to ‘Hot Spots’” by Jay Troutman, president of Aptech, on Wednesday, June 26 at 1:30PM in room S102-D.
Execuvue and Profitvue are registered trademarks to Aptech Computer Systems, Inc. All other trademarks are owned by their respective holders.
Aptech Computer Systems, Inc.
412-963-7440 x 304
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|Survival Tactics; New Technology Directions Surface in Business Intelligence Survey / November 2001|
|Aptech Opens Business Intelligence Door for Small to Mid-sized Management Firms / October 2001|