The following is a great illustration of why this company is going to be successful:
HOTELS INCREASE PROFITS, DECREASE COSTS WITH eROOMSYSTEM SOLUTIONS
eRoomServ Refreshment Centers and eRoomSafes Offer Bottom-Line Benefits; Users Cite Ease of Use, Revenue-Sharing Plan
LAS VEGAS, Nevada – June 26, 2001 – Hotels are reporting bigger bottom lines and revenue rewards received from their in-room refreshment centers and safes from eRoomSystem Technologies, Inc.
John Stonework, room service manager for the 818-room New York Marriott World Trade Center, said he took a cue from two New York City Marriott properties—the Marriott Marquis and the Marriott Financial Center—that feature eRoomSystem's eRoomServ Refreshment Centers.
"When we heard of the success our sister hotels were having with eRoomSystem Technologies, we opted in April to install their eRoomServ Refreshment Centers in place of our existing honor bars," Stonework said. "The trouble with the honor bar concept is that some of our guests weren't so honorable. They'd take product and either didn't record it on their list or they'd leave before we could get in the room to record what was missing. We were losing a lot of money."
Stonework said in addition to eliminating the problem of unpaid-for mini-bar items, the eRoomServ Refreshment Centers have significantly cut labor costs.
"Our previous mini-bars were very labor-intensive," Stonework said. "We had to have enough staff to inventory all units in our 818 rooms. With the eRoomServ Refreshment Center, I've already been able to reduce the staff needed to service the bars by two people. For our hotel, that represented $50,000 apiece saved in labor, or $100,000 a year. I'm getting ready to make another person part-time, so that will add another $25,000 in labor-cost savings to our bottom line."
Stonework said eRoomServ's refrigeration system will also contribute to similar annual savings.
"Our in-room bars are located in wooden armoires," he said. "With the previous bars, we experienced a lot of water damage to the armoires because the bars' refrigeration system tended to leak. Our engineers had to make repairs and sometimes had to replace the case goods. Because of the eRoomServ Refreshment Center's state-of-the-art refrigeration system, there is no water leakage. I project that will save us another $72,000 to $100,000 a year in labor and FF&E costs."
Perhaps most important, Stonework said, is the eRoomServ Refreshment Center's computerized data-gathering interface that allows him to track product usage and thus boost profits. "It makes the inventory and re-order process easy on management," he said. "One look at my computer and I know what my sales are, what's selling well and what's not selling. That allows me to adjust mini-bar offerings to maximize my profits. Everything‘s right there at my fingertips."
Safe and sound
Easy, "at your fingertips" access is something that Ben Weinstock stated as a big benefit for guests at the 860-room Marriott Crystal Palace in the Bahamas. Weinstock, director of information technology for the Crystal Palace, was referring to the in-room automated safes from eRoomSystem Technologies, installed in each of the property's guest rooms for one year.
"It's important for our guests to have safes in their rooms," Weinstock said. "However, the safes we had previously weren't guest-friendly. They were installed into the back wall of the closet, so they weren't easily accessible. Guests had to get a key from the front desk, which was oftentimes inconvenient. The result--not many guests were using them."
Guestroom safe usage got an immediate boost once the eRoomSafe units were installed, Weinstock said. Not only did usage increase, but eRoomSystem's revenue-sharing program boosted profits as well. Weinstock said the Marriott Crystal Palace is now making money on its in-room safes, in addition to providing hassle-free in-room-safe service to guests. "More guests are using the new safes because they're attached right to the eRoomServ Refreshment Centers, so they're easy to get to and easy to use—no hassle for the guest," Weinstock said. "In addition, the eRoomSafes are big enough so that guests can store their laptop computers—and everybody has laptops nowadays. Our old safes were too small for that."
Spreading the wealth
The revenue-sharing plan also is offered for hotels that install the eRoomServ Refreshment Centers. Gregory L. Hrncir, eRoomSystem Technologies' Vice President of Business Affairs, said hotels' bottom lines and guest satisfaction are the bottom line for all of eRoomSystem's computer-based in-room service centers. "Our eRoomServ Refreshment Centers and eRoomSafes are fully automated profit centers created specifically to benefit hotels and their valued guests," Hrncir said.
About eRoomSystem Technologies, Inc.
Las Vegas-based eRoomSystem Technologies is a full service in-room technological provider for the lodging and travel industry. The company's intelligent in-room computer platform and communications network supports eRoomSystem's line of fully automated and interactive eRoomServ Refreshment Centers, eRoomSafes and eRoomEnergy products and other future applications. Such applications will include information management services, credit card/smart card capabilities for direct billing, network access solutions, remote engineering and maintenance services, and in-room cash advances. eRoomSystem's products are installed in major hotel chains both domestically and internationally. eRoomSystem is a publicly traded company listed on the NASDAQ SmallCap Market as ERMS. The company's complete line of solutions are available on-line at www.eroomsystem.com.
Certain statements in this press release with respect to future expectations and plans may be regarded as "forward looking statements" within the meaning of Section 27A of Securities Act of 1933, Section 21E of Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements, including, but not limited to, statements with respect to future earnings, and all other forward-looking statements involve risks and uncertainties and are subject to change at any time.
Press/Investor Contact:
Name: Gregory L. Hrncir, Esq.
eRoomSystem Technologies,Inc.
Phone: (435) 688-3603
Fax: (435) 628-8611
gc@eroomsystem.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding eRoom System Technologies, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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