PREM Group upgrades its IT infrastructure in order to provide Internet, movies and electronic billing services to its hotel guests in Belgium.

Overview

PREM Group
Ghent, Belgium
www.premgroup.com

Industry
• Travel & Transportation
Products and services
• IBM System x® 3400
• IBM Global Financing
IBM Business Partner
• VDA Benelux




Challenge
Upgrade its Belgium hotel properties with a wireless network that provides guests with in-room digital services

Solution
Secured financing through IBM Global Financing, making the upgrade a financially feasible project

Benefits
• Positions the company’s Belgium hotel chain for higher classification ratings
• Enhances its offerings to attract a broader spectrum of guests
• Preserves normal credit lines, reserving finances for other business-related investments

“With our new multimedia offerings built on the IBM System x platform, we’ve been able to dramatically improve the quality of service we provide to our valued guests.”- PREM Group

Founded in Dublin in 1989 by a group of Aer Lingus pilots, PREM Group currently owns and operates hotels and apartments across Ireland, the United Kingdom, France and Belgium. With 37 properties and 3,440 rooms, PREM Group is now Ireland’s largest hotel operator. The company’s mission is to exceed its customers’ expectations in everything it does by empowering a committed team of people to work creatively for the benefit of all of its stakeholders.

A European expansion
In 2006, PREM Group began considering expansion onto the European continent and acquired existing properties in France and Belgium. But in order to provide the quality of service the brand was known for and to differentiate itself in the marketplace, PREM Group wanted to offer its guests digital in-room services such as wireless high-speed Internet, movies, music, electronic billing and digitized guest books.

Making the numbers work
IBM Business Partner VDA Benelux was engaged to design, install and maintain a digital media system in ten hotels in Belgium and one in France. The systems are built on IBM System x® 3400 servers that run the video-on-demand, content media and Web applications. In order to finance the extensive project, which included both IBM and non-IBM equipment such as Philips digital interactive monitors, PREM Group turned to IBM Global Financing. Because the services were already leased by VDA Benelux, PREM Group was able to fund the infrastructure project with a five-year lease contract.

Four star benefits
PREM Group has been able to upgrade its hotels in France and Belgium, making them more attractive to business travelers and visitors looking for higher quality services. The upgrade also makes the properties eligible for higher ratings and improves the image of the overall portfolio. Finally, the system can display tourist information and local advertising (e.g., restaurants), which not only benefits the guests but also provides extra income to PREM Group.

IBM Global Financing offered PREM Group an attractive lease contract that is the same five-year term of the depreciation schedule, enabling the hotelier to keep its cash flow positive. The financing doesn’t impact the company’s credit lines, enabling it to use its financial resources for other business-related investments. While return on investment (ROI) will be calculated in the long term on this project, the company has improved its brand image and strengthened its overall portfolio of properties.

For more information
To learn more about IBM retail solutions, contact your IBM representative or visit:

ibm.com/financing/be