Hars subsidiary given option to join Executive Inn
Hars Systems Inc HSS
Shares issued 15,796,296 Nov 12 close $0.61
Mon 15 Nov 99 News Release
Also Executive Inn Group Corp (EIG)
Mr. Kelly Blake of VIP International and Mr. Salim Sayani of Executive Inn
Group report
The 3,400 international independent hotels and car rental companies
serviced by Hars Systems Inc. -- through its wholly owned global
reservations subsidiary VIP International Corporation of Calgary -- will
now have the option of joining the Executive Inn brand of quality hotels
after a new investment.
Hotel franchise and management company Executive Inn Group of Burnaby has
agreed to purchase four million new shares (or 19.1 per cent) of Hars for
$2.4-million, an investment that formalizes the companies' working
partnership that began this summer.
"VIP has a long history serving independent hotel and car rental
companies," says Kelly Blake, president of VIP. "With the Executive Inn
brand program, we can now offer these independents a choice -- whether to
remain independent with our reservations assistance or join the Executive
Inn Hotels and Resorts affiliation program and enjoy the business-building
benefits of brand recognition. This deal means VIP can offer its clients
extended and enhanced service and VIP shares in the revenue generated."
Mr. Blake says the deal also provides VIP with a new market and a
significant potential source of revenue: Until now, VIP has not been in a
position to attract prospects desiring both a reservation service and a
brand. "Executive Inn gives us this opportunity," he adds. "Executive Inn
Hotels & Resorts is now the exclusive brand program marketed and sold by
VIP to its prospects and select members of its roster of 3,400 hotel and
car rental clients worldwide."
VIP offers travel-sector distribution and reservation services through
Internet sites such as Microsoft's Expedia, Travelocity and VIP's own
www.carsandhotels.com and through a global central reservations systems
used by 600,000 international travel and sales agents. With the Executive
Inn Group aboard, VIP will offer its 1,800 hotel and 1,600 car rental
company customers exclusive use of a suite of new services including the
Executive Inn Hotels and Resorts brand program, the Executive Reward Club
loyalty program, and the Executive Hotel Management program.
"This is fantastic news for Executive Inn Group and our shareholders," says
company president Salim Sayani. "Our partnership with VIP will help expand
our brand and management services from 10 hotels to literally thousands of
hotels and car rental companies around the world. Executive Inn now has the
immediate potential to become an international brand name that can compete
worldwide in the hospitality industry."
Executive Inn expects to have 250 VIP-serviced hotels operating under its
brand name by the end of 2003. Initially, the key markets will be North and
South America and Europe -- territories where VIP already has hundreds of
hotels under exclusive contract.
"The trend of branding in the South American and European markets lags
behind North America by five to 10 years," Mr. Sayani explains. "Only now
are independent operators in Europe and South America understanding the
benefits of branding and Executive Inn is in an ideal position to offer VIP
customers those benefits."
Hars was founded 20 years ago and trades on the Vancouver Stock Exchange
under symbol HSS. It's subsidiary, VIP International, ranks as the world's
third-largest supplier of hotel reservation services through the Internet
and travel agent reservation systems and the world's largest car rental
reservations company.
Executive Inn Group, which trades on the Alberta Stock Exchange, is a hotel
branding, marketing and management company engaged in the development of
hotel licensing agreements under the Executive Inn Hotels & Suites brand
name. Executive Inn Hotels & Suites is a rapidly growing hotel chain with
more than 1,200 guestrooms. The hotel portfolio can be viewed at
www.executiveinnhotels.com.
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