Strategic Hotels & Resorts Takes Stake in BuyEfficient Purchasing Management Platform
- Jan 08, 2008
The San-Clemente, Calif.-based Strategic Hotels & Resorts REIT has paid $6.3 million to Chicago-headquartered Sunstone Hotel Investors for a 50 percent stake in BuyEfficient, a purchasing management internet-based software designed for the hospitality industry. It provides increased organization, streamlined purchasing and accounts processing for all hotel paper goods and foods, and hotel amenities. It also manages negotiated discounts, incentives and rebates. Ken Barrett, vice president for asset management at Strategic, told CPN, “When you take a look at the volume of products a hotel buys, whether it’s food, guest supplies and toiletries for the bathroom, linen and terry and light bulbs, renovation supplies, such as paint and furniture, its huge. If you can save 1 percent on what your products cost and you multiply that by 21 hotels, it’s a massive number. If we saw growth and value creation for just our own portfolio, we could have just signed them up as a service. We saw growth and value for the company itself, and feel our shareholders will all benefit.”The deal worked for both companies. Bryan Giglia, a Sunstone vice president told CPN, “Now that we have added Strategic Hotels’ high-end hotels, we will look together to grow the platform and expand our membership.” Added Barrett, “Their solid customer and relationship base with their vendors is where we saw a lot of value.”BuyEfficient presently serves about 600 hotels in the United States and Canada .