Higgins Purchasing Group Launches Spin-off Company, Boxport

Business Editors/Travel Writers/High-Tech Writers

Hospitality Design Show

LAS VEGAS--(BUSINESS WIRE)--April 29, 2004

Boxport Provides Hospitality Industry's First Complete Outsourced

Solutions for Hotel-Branded Retail Sales Programs; and Replenishment

of Operating Supplies and Consumables

Higgins Purchasing Group, the world leader in procurement services for the luxury hospitality industry, today formally launched Boxport, an HPG spin-off company that works with luxury hotel companies to create significant new revenue streams and substantially reduce operating costs. Boxport provides the industry's first start-to-finish solutions for outsourcing hotel-branded retail sales programs; as well as for managing the ongoing purchasing and re-supply of hotel operating supplies and consumables. Boxport solutions combine world-class product development and procurement with expert management services, logistics support and hosted software applications. The Boxport team includes experienced hotel operations executives, as well as specialists in product development, retail marketing, procurement, re-order and web-based systems. Though formally announced today, Boxport has been quietly in operation for more than a year, and counts among its clients such luxury hotel companies as The Regency Hotel New York (A Loews Hotel); RockResorts (A Vail Resort); St. Regis Monarch Beach Resort & Spa, The James Hotel; among others.

"People want to buy the things they experience at top hotels for their homes -- the bedding, the personal care items, the towels, the furnishings. After all, luxury hotel products are among the 'best of the best' in international design," said Steve Higgins, visionary founder of Boxport, and principal of Higgins Purchasing Group. "Most people have to call the hotel concierge to ask how to buy these items. Now they can pick up an in-room catalog or visit a hotel-branded Web store -- managed transparently, start-to-finish by Boxport. And the hotel can generate new revenue and extend its brand without having to become a retail expert."

"Operating efficiency is becoming more important than ever in the luxury hotel segment, and the re-order of operating supplies and consumables is a huge expense for most hotel companies," said Cary Schirmer, president of Boxport. "Boxport's procurement expertise, aggregated purchasing power, inventory management capabilities and web-based software solutions offer hotel companies an efficient and cost-effective outsourced alternative to managing their re-order operations in-house."

Boxport Retail Program Solutions

Hotel Design for the Home is fueling a decorating and lifestyle revolution, while creating exciting new revenue and branding opportunities for the luxury hotel industry. Combining program planning, product development, branded Web site and catalog development, site hosting, product procurement, warehousing, customer service, fulfillment and delivery -- Boxport offers the industry's only complete outsourced solution for enabling luxury hotels to sell furnishings, accessories, amenities and custom premium products to guests and consumers.

"We want our guests to have a very memorable experience when they stay at the Regency Hotel, A Loews Hotel in New York City, and the time we've taken to design and furnish our rooms are a big part of that," said Stuart Schwartz, managing director, Regency Hotel, a Loews Hotel. "Often, our guests want to buy the things they live with while they're here -- from the robe, to the spa amenities, to the pillows, to the bed -- it's the upscale travel souvenir. Working with an experienced hotel industry solution provider like Boxport is the most effective way for us to provide a very professional in-room catalog and Web storefront, and to extend our brand beyond each stay into our guests' homes."

According to Kent Allen, research director, Aberdeen Group, "Boxport has emerged with a comprehensive outsourced solution that offers the luxury hospitality industry a smart new way to create new retail revenue streams and build customer loyalty -- all without having to build and manage their own product development, retail sales, inventory management and fulfillment infrastructure."

Boxport Re-order Solutions

One particularly big expense in back-of-the-house hotel operations is the re-supply of operating supplies, consumables and breakables -- everything from soap, shampoo and lotion -- to dishes, robes, lampshades, etc. In the U.S. alone, luxury hotel supplies and consumables are a $1.5 billion business. Many hotels manage the re-order function in-house, but that is not always the most cost-effective approach. Boxport builds on the more than 15 years of procurement expertise, purchasing power and software systems of Higgins Purchasing Group, to provide the hotel industry's only start-to-finish outsourced solution for re-order processes. From product definition, to purchasing, vendor relations, inventory management, centralized ordering and sophisticated reporting, Boxport re-order programs offer significant improvements in efficiency and cost savings.

"Boxport provides a complete purchasing solution that centralizes all of our operating supplies and equipment replenishment processes and reporting. It eliminates duplicated effort, aggregates our purchasing power, and helps maintain our brand standards," said Ed Mace, President of RockResorts. "Outsourcing to a trusted provider like Boxport results in significant savings and efficiency improvements -- and frees us to concentrate on our core mission -- serving our guests."

About Boxport

Boxport provides the luxury hotel industry's first start-to-finish solutions for outsourcing hotel-branded retail sales programs; as well as for managing the ongoing purchasing and re-supply of hotel operating supplies and consumables. Boxport solutions combine world-class product development and procurement with expert management services, logistics support and hosted software applications. Boxport hotel clients include top luxury hospitality brands such as The Regency Hotel, New York, (A Loews Hotel); Rock Resorts, (a Vail Resort); the St. Regis Monarch Beach Hotel and Spa; The James Hotel, and others. The Boxport team includes experienced hotel operations executives, as well as specialists in product development, e-retailing, procurement, re-order and web-based systems. Boxport is a spin-off of the Higgins Purchasing Group, an international leader in FF&E and OS&E procurement services for the hospitality industry, with over $400 million in annual purchasing volume. HPG has provided procurement services to over 1,500 of the world's top luxury hotels, resorts, spas and developments worldwide for more than 15 years. For more information, please visit www.boxport.com, email Boxport at inquiry@boxport.com, or call 415-772-1670.

COPYRIGHT 2004 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning