Room Revenue Guarantee™
CTEX Group provides the finance solution for independent hotel operators, FF&E suppliers and travel distributors in the hotel industry. Our Room Revenue Guarantee™ allows Independent hotels to monetize their annual predictable vacancy to purchase furniture, fixtures and equipment. With few exceptions, most hotels experience predictable annual vacancy of 30% or more.
We are building web–based software that will allow parties involved in the hotel and hospitality business (investors, hoteliers, suppliers, tour operators, etc.) real–time access to a unique revenue management, hospitality purchasing and travel remarketing system.
As our technology platform comes on-line it will use an ERPII solution, for integrating and synchronizing the global “hotelier-supplier-tour operator” process. The system will use an on-line supply chain management service. Since it integrates global supply network operations within a single database, our users will have up-to-the-minute visibility of all processes, such as room inventory positions, outstanding balance, booked and occupied rooms. Hotels enrolling in the program are provided a revolving line of credit based on their annual predictable vacancy. Uniquely, the program provides both the credit for purchase and the means to repay the debt on an annual revolving basis. Bundled capital leases securitize revolving lines of credit to purchase furniture, fixtures and equipment. The hotel vacancy is remarketed in global pre-financing, non-conflicting arrangements to repay the debt.
We consult with management to build a composite picture of needs.
We conduct a detailed analysis of annual occupancy and forecasts, key market areas and performance, rate schedules, use of funds, and financial expectations.
After careful assessment / underwriting of each property we present a detailed proposal, selecting the appropriate program.
Each client assignment is designed to meet the unique performance expectations as identified during the analysis process.
A performance contract and schedule of implementation is agreed.
Upon reaching agreement, the hotel enters into a Private Capital Agreement to provide the credit lines for purchasing, and a Travel Management Agreement to
All transactions including reservations are conducted via CTEX Central Reservations.
The performance of each program is constantly monitored and managed by CTEX in order to meet projected performance levels.
Results are reported each month by statement to the hotel. As instructed CTEX will purchase FF&E to the hotel specification from any source.