Hotels have long been a major source of income for anyone that owns or operates them. That being said, they are also a major drain when it comes to the expenses needed to keep them running and operating properly. Recently, Zen Technologies, Inc., a wholly-owned subsidiary of The CHRON Organization, Inc. (OTC: CHRO), announced that it has entered into the first stage of a partnership agreement with three of the largest hotel franchisers in the nation led by Ameristar Hospitality Group, which is based in Houston. The partnership represents more than 300 hotels collectively owned between the three groups.
What is a Multiple Dwelling Unit?
When it comes to any term, it is always going to be best to first define it before trying to understand its impact. A multiple dwelling unit, put quite simply, is any building that houses more than one unit that is meant for private dwelling by individuals. This could mean an apartment building, a college dorm, retirement homes, duplexes, or in this particular case, as it pertains to the deal, a hotel.
What Does Zen Technologies Offer?
It is helpful that when attempting to understand any sort of merger, you first look at what the major party actually does. Zen Technologies, Inc. is a technology company that focuses on providing partners with next-generation technology that helps customers to enhance and enrich their current lifestyles. They provide technologies to help with home automation, energy conservation and security monitoring to make day-to-day life simpler, smarter and more efficient. Zen helps connect families and individuals to their homes and businesses, all while helping reduce their carbon footprints.
Zen offers security options, energy-efficient thermostats and smart controls, and so many other technologies that are geared at reducing the impact that we make on the world. Hotels are notoriously energy inefficient and the new technologies being developed by Zen can help make them far more efficient, both for the comfort of the patrons as well as for the financial comfort of those that are running them.
Basics of the Deal
Zen hopes to offer the hospitality groups and hotels involved in the partnership a chance to take part in their Zero-Cost Program™, a program that is currently being instituted in grocery stores as well. Zen has already begun site surveys on 10 preselected hotels to provide data for a case study in an attempt to gauge just how much money the program could save the hotels that take part.
"Based on the first few site surveys we’ve conducted, we’re estimating that we will be able to save these hotels between 30 and 40 percent of their annual utility costs," said Zen VP of Business Development, Jeff-Bay Andersen. "These groups have done business both nationally and worldwide and we are so excited to have them as partners moving forward."
According to several recent studies, the hospitality industry spends nearly $7.5 billion each year on energy. So, the Zero-Cost Program™ is geared at saving as much money as possible. How are they going to do it you might ask? Zen is offering smart controls for rooms, energy saving programs, and new technology and equipment at no cost to the hotels initially. Instead of charging thousands to upgrade the hotels and outfit them with the newest technology, Zen will install the equipment which is then paid for through the energy savings over a period of five years, after which time the hotels will receive the full amount of savings earned through the technology.
"Energy efficiency is something that has long plagued the hospitality industry, however it was not until we discovered Zen that we found a turn-key solution that would allow us to save money without inconveniencing any of our guests," said Ameristar President Michael Usadayan. "We are so thrilled to have found a group like Zen that shares our vision of smarter, greener solutions."
What Does This Mean for the Hospitality Industry?
In April, Zen is set to attend a trade show in San Antonio, TX that is being hosted by the Asian American Hotel Owners Association. Zen hopes to come in contact with some of the 20,000 hotels that are going to be represented there to find out just what hotels are willing to take part in the program. Zen is working to change the face of hospitality as we know it, to make it more efficient, more conscious about its impact and more cost efficient for hotel proprietors.
About the Author
Stuart Smith is the CEO and Founder of SmallCapVoice.com. SmallCapVoice.com. is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its clients’ financial news releases. SmallCapVoice.com also offers individual investors all the tools they need to make informed decisions about the stocks they are interested in. Tools like stock charts, stock alerts, and Company Information Sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets. To learn more about SmallCapVoice.com and their services, please visit https://smallcapvoice.com/blog/the-small-cap-daily-small-cap-newsletter/