Newport Beach, CA, and Dallas, TX – November 10, 2008 – BirchStreet Systems, a leading provider of e-procurement and back office automation solutions, today announced it has further strengthened its presence in the travel technology arena by appointing John F. Davis III as Chief Executive Officer. Headquartered in Newport Beach, California, BirchStreet’s Web-based systems are used by more than 1,800 hotels in more than 25 countries.
Davis recently retired from Pegasus Solutions, Inc., which he launched in 1989. Under his leadership as Chairman of the Board, Chief Executive Officer and President, Pegasus became the world’s largest hotel technology provider, with more than 2,000 employees, 2007 revenues of $175 million, and customers that included nearly every hotel company in the world.
With this new appointment, BirchStreet Systems company founder and current CEO Douglas Sanborn becomes President and Chief Operating Officer.
“Over the last 20 years, John Davis has played a major role in the worldwide hospitality industry by automating what can be considered the ‘front end’ of a hotel company’s operations: reservations processing and distribution. We believe he can help us achieve similar success in our space, which is considered the ‘back end’ of hotel operations: purchasing and procurement,” BirchStreet COO Sanborn said. BirchStreet offers the only enterprise eProcurement system designed specifically for the hospitality industry, offering comprehensive business process automation that covers procedures from procurement through payment, also known as “Procure-to-Pay” (P2P) technology.
“We’ve come a long way since forming BirchStreet in 2002, and have had extraordinary success establishing the company as the leader in providing back-office technology to the hotel industry,” Sanborn continued. “However, as co-founder and a major stockholder I’ve decided that in order to take the company to the next level it’s time to hand over my reins as CEO to a world-renowned hospitality technology veteran and entrepreneur that can help us further penetrate the marketplace.” BirchStreet is privately held and has offices in Newport Beach, California, and New Delhi, India.
Davis said, “BirchStreet is in a great position for growth. It has carved out a unique market niche with its Web-based procurement technology, and has had incredible success in helping the hotel industry recognize the potential of back-end optimization as a means to provide significant improvement to a hotel’s bottom line.
“Its client list, which includes Hilton, Hyatt, Omni, and Interstate Hotels, is a testament to that success. I’m excited about growing the company and leveraging its technology and platforms to create ever more products and lines of business,” Davis continued. “I feel so strongly about BirchStreet’s potential that I’ve decided to invest in the company. As a major stockholder and CEO, I am deeply committed to building BirchStreet’s presence in the hospitality industry worldwide. I believe that every hotel in the world could benefit from the cost savings that BirchStreet’s technology can provide.”
Currently, more than 1,800 properties in more than 25 countries utilize BirchStreet to access and manage more than 130,000 suppliers, processing nearly $1.5 billion in purchasing transactions annually. The system helps hotel chains/brands, management companies, individual properties, franchisees/owners, and restaurants leverage collective buying power, improve operations and lower costs by streamlining purchasing, inventory, food-cost management and accounts payable functions across a variety of geographic regions and property types.
Considered a long-time well-respected industry visionary, Davis has a history of entrepreneurial success creating “industry firsts.” In 1989, he launched the first hotel distribution switch technology that enabled hotels around the world to be booked via the global distribution systems (GDS), such as Sabre and Galileo, and ultimately Internet sites around the world. In 1992, he launched the industry’s first hotel commission clearing house for payments to travel agents. In 1996, he led the launch of the Web’s first hotel online booking service. Prior to these technology developments at Pegasus Solutions, in 1982, he co-founded the world’s first toll-free floral ordering company, which later became known as 1-800 Flowers. For more information about John F. Davis, III, please visit John’s bio.
About BirchStreet Systems
As a recognized leader in the Hospitality market, BirchStreet delivers its web-based platform to some of the world’s most recognizable companies including; Hilton Hotels Corporation, Hyatt Hotels, InterContinental Hotels & Resorts, Omni Hotels, Interstate Hotels and Resorts and Carlson Hospitality. Their solutions enable increased supply chain visibility and gives customers closed-loop insight into their global spend. Customers can control the complete procure to pay cycle — from strategy to execution — and help them make and execute decisions that align with corporate strategy by optimizing supplier selection, compressing cycle times, and building sustainable, workable supplier relationships. Headquartered in Newport Beach California, the company is managed by a team of enterprise software veterans. For more information, visit their website: www.BirchStreetSystems.com.