SWAN Realigns Business Units To Focus On Core Competencies

"Historically, the most difficult economic times present the greatest opportunity for Richfield to create value for hoteliers," said Richfield Senior Vice President John Lambert, a 29-year veteran with the company. "Richfield has a proven track record of assisting owners and operators who are experiencing increased performance concerns relating to the repositioning of their asset in its competitive market, as well as improving profitability flow through."

Lambert said based on new contracts in the pipeline, 2002 should prove to be a robust year for Richfield.

Projections for SCEPTRE are just as promising, according to Mark Ozawa, SCEPTRE Vice President.

"In the current environment, hoteliers recognize that they need assistance in identifying the appropriate channels for reservations distribution to capture the best rates and increase revenues," Ozawa said. "Our customers are very excited about the channel-management services and distribution expertise we provide to each client, such as our ability to track results of the hotel's electronic distribution strategy and make improvements on a constant basis."

Last month, SCEPTRE increased its client base by 15 percent overall, Ozawa said, noting that as growth and momentum continue, 2002 will be a healthy year for SCEPTRE.

SHIELD also is expected to follow Richfield and SCEPTRE in large growth margins in 2002, according to SHIELD VP Gail Wilson.

"Even before the catastrophic events of September 11, the insurance landscape was changing," Wilson said. "As insurance premiums skyrocket and carriers become more selective about which hotels they will continue to insure, hoteliers are turning to SHIELD for answers and assistance. Not only will SHIELD assist owners in reducing potential losses, but we protect hoteliers from buying substandard or incomplete insurance in the first place."

Wilson said SHIELD also provides 24/7 on-line risk management services, including risk audits and claims management processing that will add value in years to come.

As part of the refocus, Scott W. Anderson resigned as President and CEO, effective February 15. Aik Hong Tan will replace Anderson as President.

"When SWAN brought me on board, I was challenged to launch a new company and grow its SHIELD, SOURCE and SOLVE business components," Anderson said. "Based on the current refocus of the organization, a mutual decision was made between myself and Vincent Yeo, CEO of City E-Solutions (CES), SWAN's majority owner, to step down as President and CEO."

In the interim, Anderson will head High Country Hospitality, a hotel management and technology-consulting firm headquartered in Telluride, Colo., where he resides.

Aik Hong, a CES executive, was assigned to assist with the company's launch last year and has been working with the SWAN team for several months.

Anderson said he met Aik Hong one year ago and recommended that CES hire him for his business savvy, integrity and knowledge of integrating e-business strategies with existing operations.

"I have great respect for Aik Hong and I know that I am leaving SWAN in capable hands," Anderson said.

Yeo said he respects Anderson's decision to resign from his post, and attributes SWAN's progress to Anderson's vision and leadership, stating: "Scott and his management team positioned the company for stability and growth during this recession."

"We sincerely appreciate Scott's efforts and we wish him all the best for the future," Yeo said.

SWAN Inc. is a global provider of one-stop integrated e-business solutions to hotels, backed by strong customer service levels. The company's core competencies span a comprehensive palette of on-line and off-line hospitality services, including: hotel management, reservation distribution, insurance and on-line risk management, and on- and off-line procurement. In addition, SWAN makes available a host of software products in an affordable Application Service Provider network, delivering property-management, sales-and-catering, yield-management and human resources functionality.

Headquartered in Denver, the company has approximately 2,000 employees and will operate initially in the United States, offering extensive services to the U.S. operations, followed by global operations, of Millennium Hotels & Resorts. Millennium & Copthorne Hotels plc, a U.K.-based company, is an investor in SWAN. Hong Kong-based City E-Solutions Limited (CES) is majority owner.