What’s In FROL’s Wallet? – Oriens Travel & Hotel Management Plans First Formal Valuation of Booking Engine Technology

On October 2nd, Oriens, operator of the HotelPure brand, released information indicating that the company is preparing to have its technology formally valued.  This is great news for shareholders who have been keeping an eye on the stock, but what is it really worth?

Here’s the thing… It seems that what people are generally looking for some kind of obvious banner or stamp that a hotel is actually using Orien’s FROL system in order to say, “yes, I can see the true value in the FROL.”  Interestingly enough, it isn’t that easy.

Riddle this if you will.  How easy is it to name all of the properties using the backend booking engine services of such proprietors as HotelProxy (http://www.hotelproxy.net/), Hotelreslink.com (http://hotelreslink.com/) or even perhaps Open Hospitality (http://www.openhospitality.com).   It may be rather difficult… say, perhaps just as difficult as it is to readily identify all of the properties utilizing Oriens’ technology.  Actually, there appear to be dozens of hotel booking engine back-end service providers competing for a hotel’s affection; suggesting there is a bona fide need for this technology type.  So what then actually makes Oriens’ hotel booking engine and online marketing services so valuable amongst a sea of would be global competitors?

The answer is likely as simple as this.

The greatest advantage that Oriens’ FROL system has over every other back-end hotel booking engine service provider is that the company operates a bilateral business model.   This meaning that on one end, Oriens has the ability to brand, flag, market and manage hotels.   This of course affords Oriens the ability to implement the FROL system directly in HotelPure branded properties.  On the other hand, while although the company has not yet made the FROL system openly available as such search and booking engines like Hotels.com (http://www.hotels.com/), like the aforementioned hotel booking engine back-end service providers, Oriens has provided and proven its back-end booking engine services with a number of properties in several countries; of course the most widely know are those associated with Daystar Properties (http://daystar-properties.com/).   And this is likely where the value comes in.

As the company has past noted, companies like Bookings B.V. and Trivago have sold for $133 Million Dollars and $564 Million Dollars, respectively.   It is very conceivable that is because they were positioned as Oriens’ is today.   Oriens is fortunate enough to have fallen into a situation within a country where its tourism economy is quickly growing and the excitement about the surf and sun amongst travelers is bustling.   Like Priceline’s purchase of Agoda – booking engine mostly isolated to Asia – the FROL, by all accounts from OTHM management, is a booking engine that is quickly securing a foothold in particular regions of Central America.   This possibly making Oriens’ FROL the region’s booking engine of choice.  And with the deal that is currently rumored to be explored between Oriens and one of Costa Rica’s fastest growing property developers, the explosive grow of Oriens FROL is indeed quite possible.

What is that worth?  Your guess is as good as ours.   But if history points to the future…, hundreds of millions of dollars quite possibly; particularly if Oriens operates wisely, grows quickly and secures beneficial prosperous relationships.

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