Global Reservation System; Starwood Anticipates
Savings of $15 million to $20 million Annually
on its Technology Operating Costs
|PALO ALTO, Calif.-- Oct. 26, 2004 -- HP (NYSE:HPQ)(Nasdaq:HPQ) and
Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced
a broad technology agreement that will enable Starwood to deliver an improved
guest reservation experience to its customers around the globe.
As part of a seven-year, $100 million contract, the companies are pooling resources and expertise to build a new global reservation system that will be managed by HP. In addition to vastly improved functionality, Starwood anticipates savings of $15 million to $20 million annually on its technology operating costs.
Under the agreement and in collaboration with HP, Starwood will completely re-design, deploy, manage and support a new hotel reservation system based on HP servers, the HP-UX and Linux operating systems, and industry-standard HP ProLiant servers. Anticipated to handle millions of guest transactions each year, the new reservation system will roll out in all of Starwood's distribution channels, including its world-class global customer contact centers, its proprietary websites, as well as its 750 hotels worldwide.
One of the world's largest hotel and leisure companies, Starwood is a leader in the hospitality industry, in which competitive success is based on a number of factors to attract and retain guests. Through adoption of HP's Adaptive Enterprise strategy linked with Starwood's advanced technical approach and innovative business practices, Starwood anticipates gaining competitive advantage by synchronizing business and IT to capitalize on change and flexibility.
Starwood believes this will enable the company to increase occupancy rates in its properties, enhance its Starwood Preferred Guest customer loyalty program, and significantly reduce operational expenses.
"Starwood selected HP as our technology partner for this engagement based on its vision, expertise, flexibility and understanding of the consumer market, as well as its broad portfolio of consumer and enterprise technology and services offerings," said Robert Cotter, president and chief operating officer, Starwood.
The new system will replace Starwood's legacy, mainframe-based applications, allowing for an improved reservations process and enabling Starwood to better fulfill Starwood Preferred Guests preferences and special needs. Web reservations will be able to be booked in numerous languages, further expanding Starwood's reach in the global marketplace.
"HP is unique in that unlike our competitors, we offer highly flexible, collaborative and cost-effective services and solutions that deliver a richer consumer experience, a more innovative platform and the ability to ensure that customers such as Starwood can synchronize business and IT, all part of achieving an Adaptive Enterprise," said Jack Novia, senior vice president, Customer Solutions Group, and managing director -- Americas, HP. "We look forward to partnering with Starwood to develop and collaborate on the next generation of hotel IT to create new guest experiences and help elevate and differentiate Starwood's brands."
HP also will operate Starwood's messaging environment, provide network management services, assist with application development and integration, and support Starwood's multi-vendor server environment, including storage management. In addition, HP will build the infrastructure for and host Starwood's branded websites.
The global hotel reservation system will extend and comply with Starwood's service-oriented architecture model used across the enterprise. Starwood will supplement its resources with HP software engineers, developers and quality assurance resources to design, build and deliver the new reservations environment. HP also will take over the operational aspects of Starwood's core computing complex and provide a dramatically improved and robust disaster-recovery facility.
The commitment between the companies is intended to eventually allow Starwood to redeploy capital into its core business-building and marketing initiatives while increasing its ability to respond rapidly to changes in market conditions or customer demands and achieving a better return on investment.
About Starwood Hotels and Resorts Worldwide
Linux is a U.S. registered trademark of Linus Torvalds.
This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements and assumptions.
|Also See:||Unique Value Drivers Determine Hotels' Technology Choices / Deloitte & Touche / July 2003|
|Starwood Hotels Names Mr. Robert F. Cotter President and Chief Operating Officer/ November 2003|