DALLAS? Wyndham International is considering forming an alliance with a company that has a similar asset-owned structure in order to get more buying clout in the e-procurement arena. That move mimics recent efforts by other hotel companies to accomplish the same goal: Marriott teamed with Hyatt in a ground-breaking alliance, while Starwood went its own way by investing heavily in Zoho Corp. Also in the offing is the possibility of Wyndham?s linking up with competing hotel companies to contribute to the funding of an architectural platform that would ease the way for consumers to book hotel rooms over the Internet. That?s all according to Fred Kleisner, who rose up recently to become the Dallas-based hotel company?s CEO after serving as COO for under a year. Kleisner has played a large hand in Wyndham?s restructuring after the company took a $1-billion cash infusion from an investment group a year ago. ?I think there is an opportunity in front of us to play a part in what form distribution will take in the future,? said Kleisner. ?We are interested in partnering with the opaque providers in our industry and are looking for where else the opportunities are for the customer who wants to find Wyndham on the Internet. We are willing to join with competitors to jointly fund the architecture of such a model.? The idea is not farfetched: In Europe recently Granada Group, Hilton International and Accor announced they have joined forces to sell rooms over a singular website by the end of the year, while here in the United States there is talk of a similar alliance forming that would allow hotel companies to take back some of the business they have surrendered to third-party vendors over the Internet. As for the formation of an e-procurement system, Kleisner said that he called top executives of Hyatt and Marriott Services when he saw the announcement of their joint venture (HOTEL BUSINESS?, June 7, 2000) but that Wyndham is still keeping its options open. He pointed out that Wyndham was the first to sign on to do 40% of its purchasing through GoCo-op. He also said that because Wyndham owns 90% of its assets, it would bring a great deal to the table in negotiating for the purchasing of goods. That?s because Wyndham would be able to direct its hotels to buy certain goods, unlike franchise hotel companies, which can only recommend to franchisees what goods they should buy. As for potential partners who could join forces with Wyndham to create purchasing power, Kleisner said the company ?is looking at who else is similar to us, who owns a lot of hotels and who can join with us and GoCo-op,? he said. Upgrading Pickwick Hotel Wyndham meanwhile is directing its attention to technology in other ways. It recently announced that an unbranded hotel it has owned in San Francisco will be used as a beta-testing platform for technology. Kleisner said that the hotel was originally not in the best of locations, but that with the growth in the number of dot-com companies in San Francisco, it now sits in the heart of a high-tech area called SoMa, which stands for South of Market. The Pickwick Hotel, to be renamed the Wyndham SoMa, will re-open next year with high-speed Internet access in the guestrooms, and wireless connectivity to meeting rooms and lobbies. Plans are for guests to be able to get into their rooms by using their credit cards or Wyndham frequent guest membership card. Once in the room they will be able to tune in to the Internet to check the weather in the next city they?ll visit, as well as look into their hotel and flight reservations. Kleisner also told HOTEL BUSINESS? that the transition plan he and former Wyndham CEO Jim Carreker (who now serves as Wyndham?s ?non-executive chairman?) put into place for Kleisner to assume the CEO reins has ?worked exceedingly well.? Kleisner said he is working in true partnership form with his new COO, Ted Teng, who was recruited from Kleisner?s alma mater, Starwood Hotels & Resorts. Kl
