Under the agreement, which began Jan. 1, the Shaner Hotel Group provides all accounting functions including daily revenue reporting, accounts payable, treasury management and monthly financial reporting for the 18 hotels either owned or managed by the Essex Partners. 

Plato Ghinos, Shaner's Vice President of Development, said the new alliance demonstrates how Shaner, a privately held hotel management and development company, can assist other hotel management groups with a variety of back-of-the-house services. 

"We have the technology to handle many more hotels and we are looking to expand our outsource services," Ghinos said. "In a tough competitive environment, high quality accounting information delivered in a timely manner is essential. Our accounting data gives hotel managers time to react to the market and make adjustments."

The Shaner Hotel Group has invested in developing custom hotel accounting software that allows the company to manage billing and reporting functions for dozens of hotels easily. J.  B. Griffin, Shaner's Chief Financial Officer, heads up a 16-member accounting team that now handles accounting for more than 40-full and limited-service hotels. 

"We offer efficient, accurate service that many small to mid-size hotel operators cannot match," Griffin said. "We could easily add 10 times the number of hotels we are currently serving and still offer the same high level of service."

It was that commitment to superior technology that caught the eye of Essex Partners, whose portfolio includes more than 1,800 hotel rooms. 

Barbara Purvis, President and Chief Operating Officer of Essex looked at trying to duplicate Shaner's accounting system, but the company decided it would be better to outsource the work.

"This alliance allows us to get all of our accounting information in a timely, cost effective manner � without a huge capital outlay," said Purvis. "This alliance also frees up our administrative time, so we can focus more on operating our properties and increasing the size of our portfolio."

The Shaner and Essex alliance also includes the companies working together to examine strategic growth opportunities as each company looks for quality new third-party management options. 

"This partnership works because the two companies are compatible," Purvis said. "We are looking to grow in the limited-service market, while the Shaner Hotel Group wants to expand in its full service hotels. So we are not competing for the same opportunities."

About Essex
Rochester, New York-based, Essex Partners Inc. is a full service hotel company with capabilities in acquisition, development, financing and management. Essex has been involved in the development and management of hotels representing brands such as Courtyard by Marriott, Homewood Suites by Hilton, Hampton Inn, Ramada Inn and Microtel Inn. It currently owns and manages 18 hotels in six states in the east and Midwest. 

About Shaner Hotel Group
Shaner Hotel Group is a lodging company that owns and operates 22 hotels in 15 states. Nine upscale brands make-up the Shaner portfolio.  Shaner is currently developing a new Courtyard by Marriott at the University of Delaware, Newark, Del., a new Fairfield Inn and Suites in Jacksonville Beach, Fla. and a new Spring Hill Suites by Marriott in State College, Penn.  It manages hotels and provides management services to other hotel companies.