Starwood Sleeps Better at Night with Fixed
Rate Electricity Contracts
Procurements in Texas, New York and Massachusetts yield
Significant Price Reductions
January 7, 2004 - Citing World Energy’s national
footprint and reverse auction technology, hotel giant Starwood
Hotels & Resorts Worldwide, Inc., chose World Energy
to procure electricity for 20 facilities in Texas, Massachusetts
and New York. These facilities use over 100,000,000 kWh
per year, and in signing 18 and 24 month contracts Starwood
received over $2,000,000 in reduced pricing through the
auction process.
“The Internet has become an integral part of the
hospitality industry, and as a result Starwood has embraced
the concept of negotiating contracts with our suppliers
utilizing electronic RFP/RFI events including reverse auctions.
The use of this technology has already had a tremendous
impact in many areas of our business, including the bid
process of electricity agreements with third party commodity
suppliers. ,” said John Lembo, Director of Energy,
Starwood Hotels & Resorts Worldwide, Inc.
World Energy’s auctions attracted more than 12 suppliers
bidding over 110 times. The auction process yielded reduced
pricing ranging from 14.5 - 24.8%, and enabled Starwood
to lock in commodity pricing for terms ranging from 18 to
24 months.
“In addition to their reverse auction technology,
World Energy’s national footprint attracted us as
a significant value-add. Their expansive market expertise
is a perfect match for a company with properties across
the country. As we continue to centralize sourcing and maximize
the leverage of high-volume purchasing, it is very difficult
for us to monitor the status of deregulation and pricing
trends in each of the utility territories in which we have
properties. World Energy’s expertise, supplier relationships
and knowledge of market rules make it a natural outsourcing
partner for a company like ours,” continued Mr. Lembo.
“Servicing national accounts is a clear strategic
direction for us, and having a success story like Starwood
gives credibility to our national capabilities. We are pleased
that Starwood decided to continue to work with us in Massachusetts
and New York after our success in Texas,” stated Richard
Domaleski, World Energy’s President. “We look
forward to serving them in other deregulated markets as
opportunities arise.”
About Starwood
Starwood Hotels & Resorts Worldwide, Inc. is one of
the leading hotel and leisure companies in the world with
more than 740 properties in more than 80 countries and 105,000
employees at its owned and managed properties. With internationally
renowned brands, Starwood is a fully integrated owner, operator
and franchisor of hotels and resorts including: St. Regis,
The Luxury Collection, Sheraton, Westin, Four Points by
Sheraton, W brands, as well as Starwood Vacation Ownership,
Inc., one of the premier developers and operators of high
quality vacation interval ownership resorts. For more information,
please visit www.starwood.com.
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