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Over 5,000 Rooms Contracted Under Hotel Investment Model in First 5 Months of 2009 |
In return for purchasing the LodgeNet system, hoteliers are
guaranteed an expedited installation of their system as well as receive
greater control of programming content, pricing, and customization.
Once installed, the hotel's LodgeNet system becomes a revenue producing
asset, enhancing the overall value of the property. As a part of this
expanded program, LodgeNet has also made arrangements with 3rd party
financing sources to allow customers to finance their system purchase.
LodgeNet offers the Hotel Investment Model for its full line of
interactive TV platforms including HD Advanced (coaxial or IPTV),
HD-Ready and VOD Basic. Speaking today at the Noble Financial Emerging Growth Equity
Conference, LodgeNet Chairman and CEO Scott C. Petersen said that the
company's Hotel Investment Model contracted base represents a variety
of hotels across a range of brands and market segments. Major
properties contracted under the Hotel Investment Model this year
include the Trump International Hotel (Hawaii), the Omni Shoreham Hotel
(Washington, DC) and the Sheraton Fallsview Hotel (Niagara Falls). The
company has previously installed its interactive television system
under this innovative business model at the Venetian Hotel in Las Vegas
and in Macao, China. "Sales of interactive television systems under the Hotel
Investment Model are an important component of our strategy to grow and
diversify our revenues," said Petersen. "During the First Quarter of
2009, LodgeNet generated revenues of $51.6 million, or 40% of total
revenue, from its strategic growth initiatives, which represented year
over year growth of 27% from non-guest entertainment sources." Petersen explained that LodgeNet launched the expanded Hotel
Investment Model late last year in response to high demand from hotels
for HDTV installations and upgrades. "In the challenging economic
environment, all companies are looking for alternative approaches to
how they conduct business. We have outstanding relationships with our
customers and based on their feedback are pleased to be offering this
new business model," he said. "Our Hotel Investment Model has been well
received and allows us to meet demand for our advanced television
solutions beyond the confines of our traditional model. In addition,
this business model is part of our business strategy to generate
greater cash flow without capital investment." About LodgeNet Interactive LodgeNet Interactive Corporation is the leading provider of
media and connectivity solutions designed to meet the unique needs of
hospitality, healthcare and other guest-based businesses. LodgeNet
Interactive serves more than 1.9 million hotel rooms representing
10,100 hotel properties worldwide in addition to healthcare facilities
throughout the United States. The company's services include:
Interactive Television Solutions, Broadband Internet Solutions, Content
Solutions, Professional Solutions and Advertising Media Solutions.
LodgeNet Interactive Corporation owns and operates businesses under the
industry leading brands: LodgeNet, LodgeNetRX, and The Hotel Networks.
LodgeNet Interactive is listed on NASDAQ and trades under the symbol
LNET. For more information, please visit www.lodgenet.com. LodgeNet is a registered trademark of LodgeNet Interactive
Corporation. Other trademarks are the property of their respective
owners.
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Ann Parker, Director of Corporate Communications of LodgeNet Interactive Corporation, +1-605-988-1000, [email protected] |