Corporate Profile

Corporate Information

To organize the fragmented mid/lower end hotel accommodation sector in the developing countries such as  Costa Rica, Panama, Nicaragua, China, Caribbean countries and other countries in the similar phase, to re-organize these hotel properties under a unified name brand; Hotel PURE, thus increasing their International exposure, recognition, occupancy rates and revenue.

Financial Projections

    Year 1 Year 2 Year 3 Year 4 Year 5
             
Number of Properties   30 70 150 240 360
Initial Set-up Fees   0 0 $600000 $1200000 $2100000
Yearly Royalties   0 $840000 $3600000 $11826000 $24834600
Misc Incomes   $3000 $48000 $120000 $240000 $720000
Sub Total   $3000 $888000 $4320000 $13266000 $27654600
             
Operations Expenses   $480000 $576000 $864000 $1296000 $1944000
Software Development   $260000 $286000 $314600 $346060 $380666
             
Total   -$737000 $26000 $3141400 $11623940 $25329934
Grand Total 5 years Projections         $39384274
             

** Figures above in US dollars

Why is Super 8 hotels (NYSE: WYN), Holiday Inns (NYSE: IHG), Marriott Hotels (NYSE: MAR) Sheratons Hotel (NYSE: HOT), Best Western and other branded hotel chains so successful in the North America continent, the reason is brand recognition. When a traveler walks into a Super 8 hotel, he expects to pay a budget nightly rate and a clean accommodation for his stay. Upon his departure, the head office of Super 8 will receive a “Portion” of his pay to the hotel as royalty. This “Portion” could be as much 15% of the nightly rate for some of the branded hotel chain. So a typical hotel chain property with 100 rooms and charges $90 per night could pay as much as $30,000, based on a 75% monthly occupancy rate, per month to its head office as royalty, multiply that by the number of properties, in the case of Wyndham World-Wide (NYSE:WYN), the head office of Super 8 Hotels, more than 6500 hotels, that is $195 Million USD per month, $2.34 Billion USD per year, that is the revenue for one branded hotel chain.

Operating Hotel PURE, a wholly owned subsidiary of Oriens Travel & Hotel Management Corp (US stock trading symbol: OTHM), the company is concentrating its efforts in the developing countries to develop a similar business model by uniting the fragmented, independently owned small and medium size hotels under a unique name brand: Hotel PURE, thus giving these hotel properties an international brand recognition, increase their occupancy rates and revenue. Oriens will receive from these hotels, booking commissions (20%, average $100 per booking based on a 7 nights booking at $75/night) for rooms booked through its Hotel PURE web site, as well as monthly royalty of no more than 6% of the hotels’ gross sales revenue.

Since inception on August 21, 2007, number of hotels joining the Hotel PURE network has increased to just over 30 properties in the Central America region and growing rapidly. Based on this business model, Oriens projects achieving yearly revenue of $4 Million USD by the end of third year in operation to $25 Million USD by year 5. Further growth will depend on the number of hotels joining the Hotel PURE network.

To ensure a uniform standard when customers stay all Hotel PURE properties, the company has set a strict level of service standard for new hotels joining the PURE network. As a result, some hotels will require assistant in refining their day to day operations and overall appearance. Armed with more than 40 years of hotel management experience, Oriens’ management team is more than qualified to assist Hotel PURE’s franchisees with their requirements.

The other vital challenge every hotel faces today is customers’ source. Simply spending hundreds of thousands perhaps millions of dollars to open a hotel does not automatically guarantee the success of the venture. Customers do not simply show up at the door looking for accommodations. A comprehensive marketing strategy will have to be put in place to ensure steady flow of customers’ base. With more and more people today turning to the Internet when sourcing for hotel accommodations, rather than traditionally calling their travel agents, the success of some of the major online travel booking web sites such as Expedia, Travelocity, Orbitz is evidenced. Having assembled a team of top notch technology development personnel, Oriens has successfully developed a unique proprietary online booking system catering to its Hotel PURE franchisees, allowing people from every corner of the world to book into Hotel PURE’s properties, as well as off line system to help streamline the hotels’ day to day operations. In addition, the Oriens marketing department has also delivered significant results by placing Hotel PURE web site into the second page of search results in Google, number one search engine on the Internet, when searching for hotels in Costa Rica, from page 55 eight months ago. Using these tools as solid foundations, Oriens will help bring a steady flow of customers to its Hotel PURE properties in addition to other sales/bookings distribution channels. Oriens believes this marketing edge will help bring more hotels to join the hotel PURE network.


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