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 reorganize these hotel properties under a unified name brand; Hotel PURE, thus increasing their International exposure, recognition, occupancy rates and revenue.
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. Further growth will depend on the number of hotels joining the Hotel PURE network.

