NEW YORK - May 20, 1998 - Hospitality Worldwide Services Inc. (AMEX:HWS) Wednesday announced that its wholly owned subsidiary, Parker Reorder Co., has signed a two-year contract with Servico Management Corp. under which Parker Reorder will provide procurement services and its proprietary online procurement software, Parker FIRST (Fully Integrated Reorder System & Tracking).
Scott Foos, president and chief executive officer of Parker Reorder, said that eight of Servico's 75 hotels are included in the first phase of the program, with the remainder expected to be online by the end of the third quarter. He said that Parker Reorder will install its Parker FIRST software in each participating hotel.
"Our software includes a custom database of frequently ordered products, and enables the hotel staff to efficiently create purchase orders and track order status. Orders and product information will be exchanged daily with Parker Reorder via the Internet. Parker Reorder combines the purchasing volume of all of its customers to negotiate favorable pricing with vendors," Foos said.
"Servico is a strategic customer given the number of hotels it owns and the diversity of the properties it manages," Foos continued.
"Like many management companies, REITs, franchise companies, owners and operators in the industry, Servico is looking for ways to streamline operations and reduce operating expenses. By outsourcing various procurement functions to Parker Reorder, using our computer technology, and taking advantage of our buying leverage, Servico will realize bottom-line savings," he added.
Robert Berman, chairman and chief executive officer of Hospitality Worldwide Services, said: "We are pleased to establish this strategic partnership with Servico, a leader in the hotel management industry.
"This is an important milestone in the roll-out of Parker FIRST, and it moves us a step closer to realizing our vision for HWS as the one-stop shop that provides our hospitality industry customers all of the services they need to develop, equip and maintain their properties."
Parker Reorder completed the second release of its Parker FIRST software in March 1998 and has installed the system in nine other hotels as it launches its full-scale marketing campaign.
"Parker Reorder is an established procurement organization that will operate as an extension of my corporate staff. I am confident that their services and software will deliver tangible savings," said David Buddemeyer, president and chief executive officer of Servico.
Servico Management owns or manages 75 hotels with more than 15,600 rooms in 23 states and Canada. The hotels are primarily full-service, providing food and beverage service as well as lodging and meeting facilities.
Substantially all of Servico's hotels are affiliated with nationally recognized hospitality franchises, including Holiday Inn, Crowne Plaza, Hilton, Omni, Radisson, Sheraton and Westin. With assets in excess of $675 million, Servico is one of the largest hotel owner/operators in the United States.
Servico's pending merger with Impac Hotel Group is expected to add 55 hotels, giving the entity, to be known as Lodgian, a total of 140 hotels. Parker Reorder has headquarters in Miami and has been serving the reorder needs of the hospitality industry for more than seven years.
Through its subsidiaries, Hospitality Worldwide Services provides comprehensive development and management services to the hospitality industry, including project evaluation and management, development and construction, procurement, logistics and transportation, and interior and exterior maintenance and renovation.
The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties, including, without limitation, demand and competition for the company's services, and other risks or uncertainties detailed in the company's Securities and Exchange Commission filings.