News for the Hospitality Executive
LAS VEGAS, Nov. 1, 2011 -- Oriens Travel and Hotel Management Corp. (OTC - OTHM.PK), www.OriensCorp.com, announced that its rapidly growing portfolio of properties flagged, operated and/or managed under its Hotel PURE brand (www.HotelPURE.com) is right in line with sentiments echoed by industry leaders such as Accor Hotels, InterContinental Hotel Group and DiamondRock Hospitality Co.
From the time Oriens' secured its first hotel property in November of 2007, the company's Hotel PURE brand has emerged -- swift and stealth -- as a possible player on the larger hospitality stage. By the end of 2010, Oriens' portfolio had effectively grown an average of 238% per year. Year-to-date, 11 new hotel properties have been added to its portfolio with close to 30 additional properties expected to be closed and integrated by year end.
Known for its advanced Online-Internet Hotel Booking Technology and specialized e-marketing ability offered to boutique hotel property owners, Oriens seems on track to maintain or even outpace the acquisition growth of the past 26 months.
"Despite international crisis and mixed messages regarding the hospitality industry's stability, the overall market for hotels is beginning to recover well and we have certainly been the benefactors," stated Mr. Ken Chua, President and CEO of Oriens Travel and Hotel Management Corp.
Similar thoughts on the market's recovery were made in the recent past by Denis Hennequi, Accor Hotels CEO. Hennequi told CNBC, "The summer has been extremely strong...as far as we can see October is going well as well."
Andy Cosslett of InterContinental Hotel Group's sentiments were analogous, stating, "We're much more positive today than when we posted results in February...the recovery in the hotel market has been led by China."
LaSalle Hotel Properties reported Q3 increases in occupancy, ADR and RevPAR (revenue per available room) and DiamondRock Hospitality Co, CEO, Mark Brugger, whose hotels are operated by various hoteliers such as Hilton and Marriott, mentioned having seen good improvements in the third quarter as well, with more people booking rooms and causing room rates to rise, reflecting "strong lodging fundamentals."
Mr. Chua continued, "The crazy thing is, it was the economic fallout and decline in the hospitality space that actually secured our timely entry into the marketplace. Without that, we could have never gotten on the playing field and established such a presence so quickly; as well as we did. That market decline allowed us to attract the very same boutique hotel properties that major flags like the Sheraton or Holiday Inn were de-franchising (de-branding) regularly. Why the de-franchising? Because these properties simply couldn't afford the ongoing Property Improvement Programs (PIP) demanded by these franchisors to upgrade the properties to the brand's interpretation of industry standards. Many of these improvements are frivolous and may not affect the customer's lodging experience in any way. These PIPs place a huge burden on the property owners, only adding insult to injury when you factor in the previous state of the economy -- ultimately leading to lower yearly net revenue. We do not believe that such aggressive PIPs are necessary for the hotel's stability nor our bottom line. And now that hotel owners have gradually gotten to know who we are, witness our ability to deliver guaranteed room reservations via our Hotel PURE brand and our superior e-marketing solutions, they now have an alternative to working with overpriced hotel brand operators.
"Our internet booking engine technology is top shelf and extremely competitive. You take our advanced electronic reservation system and add the internet marketing services we provide hoteliers and you'll find why we seem to be outpacing ourselves. Hotel property owners want premium services at much lower costs -- with much better results if possible. Hotel PURE makes that possible."
Oriens indicates it has seen growth and stabilization of revenue amongst its portfolio hotels. With the use of its proprietary tools, internet marketing and software solutions, properties signed on with Hotel PURE have seen substantial increased room reservations and stabilized P&L. In some cases, room sales of its portfolio properties have increased by as much as 37% within 90 days of a hotel joining Hotel PURE; 42% increase overall.
Mr. Chua concluded, "However, it is the oncoming recovery within both the economy and hospitality industry that is affording us the ability to effectively execute on our business model. Given the opportunity, we will continue to prove to boutique hotel operators globally, as well as investors, that Oriens Travel & Hotel Management and our Hotel PURE brand are real contenders in this arena."
The company has experienced faster growth in hotel acquisitions than anticipated. In addition to the 11 properties added to the company's portfolio year-to-date, Oriens currently has its sights on immediately integrating a California beach front property, a destination hotel in Orlando, FL, as well as over 20 Luxury Bed & Breakfast locations in North America by year-end 2011. If successful with all of its new acquisitions by the end of this Q4, Oriens will have secured close to 70% of the 2012 target number (100 hotels flagged, owned, operated and/or managed under the Hotel PURE brand) -- theoretically, positioning the company to surpass 100 hotels during 2012.
People close to the company suggest that growing the portfolio this quickly is well within reach for Oriens. The brand has now mounted a foothold in the hotelier/hospitality space by offering affordable premium flagging and operational services and is quickly becoming a formidable competitor as an internet marketing and hotel booking engine service provider. Oriens can afford to be more agile and nimble than larger market participants such as hotelier Sheraton or booking engine Hotels.com. This gives management the freedom to aggressively pursue and execute on its business model internationally, at seemingly the most opportune time... during the hospitality market's oncoming recovery.
About Oriens Travel & Hotel Management Corp. (www.orienscorp.com)
(PINKSHEETS: OTHM) engages in the operation of hotels and resorts primarily in the United States and Central America under the Hotel PURE brand. The company also operates Friendly Reservations Online, a proprietary and sophisticated online booking system designed to execute reservations capture through Hotel PURE consumer facing websites, as well as individual hotel websites operated by Oriens on behalf of hotels branded under the Hotel PURE brand. Oriens is based in Las Vegas, Nevada. For more information visit their corporate fact sheet http://orienscorp.files.wordpress.com/2011/10/othm-fact-sheet.pdf
Safe Harbor Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.
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