Hotel and resort chain launches IT subsidiary

March 20, 2002
March 20, 2002--The Net Effect, a subsidiary of MeriStar, will provide technology consulting, project management, and hardware acquisition services.

MeriStar Hotels & Resorts (www.meristar.com) has launched a new subsidiary that will specialize in information technology consulting and telecommunications services tailored for the hotel industry.

The new subsidiary, called The NetEffect Alliance, is designed to provide a full range of services, including technology consulting, project management, hardware acquisition, e-marketing and other Internet-based services. In addition, NetEffect will offer most major-carrier telecommunications services at costs lower than individual hotels or smaller management companies could purchase on their own.

"Our strategy is to take advantage of the buying power and technological expertise of the world's largest independent hotel management company," says Brian Garavuso, MeriStar's chief technology officer, who also will lead NetEffect. "Because we have worked through most, if not all, of the IT scenarios and problems for our own managed hotels, we can provide hotel owners, asset managers or other hotel management companies with customized hardware and solutions that work for virtually any hotel segment or location-type at a highly affordable cost."

"Internally, establishing a separate IT subsidiary offers certain advantages," Garavuso continues. "Most important, it enables us to maximize the investment we already have made in our technology infrastructure."

The NetEffect is designed to handle everything from Web design for an individual hotel or resort, to designing, installing and maintaining a complex property management system. "Because we work with nearly 300 hotels, we have seen just about every type of situation and continually are pushing the envelope to find new, improved and more cost-effective ways to operate hotels through enhanced IT services. We will provide proven, tested solutions," he says.

Garavuso notes that in the area of long-distance costs, MeriStar's volume discounts can provide savings for The NetEffect clients. "Moreover, the additional volume from our clients, when added to ours, also lowers costs for our managed properties. It's a win-win situation," he says.

The NetEffect will offer services from offices in Washington, DC; Fort Myers, FL; and Dallas, TX.

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