Korakia Pensione, Palm Springs
A number of shareholders have asked whether we are still pursuing our hotel sector project.
The answer is yes. We have a continuing relationship with the majority of the properties that started using our products. Those who have not continued have responded to strong inducements by their previous suppliers to “come back”. That tactic has been a hindrance but achieved mixed results for our competitors because our clients do like our products a great deal, on their own merits. The emerging pattern is a triage – a few have gone back entirely, a few have gone back partially, and the majority have stayed.
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Our project manager on the scene in Palm Springs, functioning in the capacity as a distributor, can handle approximately 25 properties effectively on a full service basis, without a next level of investment to support non-local activity with more infrastructure. We would like to expand supply to 100 properties between Palm Springs, San Diego and Orange County.
There are indications from a national franchise test site in San Diego that our positive local experience in Palm Springs can be expanded, however the required service level is not something that the distributor can yet undertake. This is the principal reason for not yet being at 100 properties.
The bottom line is that we have established a foothold in a great sector, and would rather work with our current distributor as he develops the means to service his accounts well non-locally, than rush the issue. The quality of the relationships are good, and referrals are coming. An additional means to reach the 100 location goal will include the supply of a related cateogory – retirement facilities. Good feedback is emerging from test retirement facilities that are local to our distributor. Wherever messes are made, we can be part of the solution. The hospitality sector remains an encouraging area for future growth.