Silver Spring, MD (August 29, 2002) Worldwide lodging franchisor Choice Hotels International (NYSE:CHH) has entered into an agreement with the Caribbean Hotel Association (CHA) that gives CHA access to the technology, vendor relationships and purchasing power of ChoiceBuys.com, Choices award-winning e-procurement system.
The agreement calls for the creation of CaribBuys.com, an e-procurement system that employs ChoiceBuys.coms technology platform and is available to CHAs 35 affiliated island nation associations and 900-plus hotel membership. Additionally, the agreement is crafted to give CaribBuys.com users access to the leveraged purchasing power of ChoiceBuys.com, and endorsed vendors participating on the Choice site may also elect to participate on the CHA site.
In creating ChoiceBuys.com over three years ago, we essentially built an e-procurement template that can be adapted for use by other organizations, said Daniel Rothfeld, Choices senior vice president, partner services. We are proud to welcome the Caribbean Hotel Association as the first organization to channel the state-of-the-art technology, purchasing power and vendor relationships represented by ChoiceBuys.com for their own benefit.
According to the agreement, Choice will receive revenues via an annual licensing fee, subscription fees from participating vendors and transaction fees. CaribBuys.com is slated to launch in the 4th quarter of 2002.
Importing the ChoiceBuys.com technology to create CaribBuys.com is a turnkey solution that will result in tremendous convenience and savings for our members. Our associations member hotels will be able to find suppliers much more efficiently, and conduct their procurement business on-line directly with suppliers, all while enjoying lower pricing by combining purchasing power with Choice Hotels, said John Bell, CHAs director general & CEO. Were thrilled to offer a new, customized e-procurement marketplace to our membership. And with Choices assistance, we are also working to lower freight costs for products shipped into the Caribbean by endorsing a major freight-fowarding service provider.
Named one of the 200 most promising business-to-business web sites by Forbes.com in 2000, ChoiceBuys.com was launched in April 1999 as one of the industrys first e-procurement systems. To date, more than 250,000 products and services are marketed on the site, with more than 3,200 Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites brand franchisees registered as users. As of June 30, 2002, Choice franchisees had purchased nearly $5 million in products and services via ChoiceBuys.com.
Choice Hotels International (NYSE:CHH) is one of the world's largest lodging franchisors, franchising more than 5,000 hotels in 46 countries under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, MainStay Suites and Rodeway Inn brand names. For more information on Choice, visit the company's Internet site at www.choicehotels.com. For more information on CaribBuys.com, visit www.CaribBuys.com.