Preferred Changes to Profit Status

Share this content:
Preferred Hotels & Resorts Worldwide, Chicago, converted its business structure to a for-profit shareholder-owned corporation. The 30-year-old nonprofit organization provides direct marketing programs and reservation services for more than 110 luxury hotels and resorts.


According to Peter Cass, president/CEO of Preferred, the new structure is designed to let the organization raise capital more quickly for development projects and to help promote stronger marketing alliances with other for-profit enterprises.


"Mergers and business alliances have flooded the global hospitality industry with a sea of hotel brands, which makes this the most competitive market we have ever faced," he said. "This also provides us with a better and more professional stance for our company."


Preferred will provide the same services for its members that it did in the past. The company's new name will be Preferred Hotels & Resorts Worldwide Inc. Two classes of stock will be issued. One will serve as the basis of a one-member, one-share, one-vote governance system while the other will serve as a vehicle for raising capital for special development projects. Both will be offered to current members at no cost. Future members, however, will have to purchase shares at a market value determined by the organization's net worth.
close

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above