Success Stories
Sodexo USA
Situation: Cost saving initiative requires outside energy management support
Sodexo, Inc. is the leading integrated food and facilities management services provider in the U.S., Canada, and Mexico, with $7.7 billion in annual revenue and 120,000 employees. With a client base that spans corporations, health care, long term care, retirement centers, schools, college campuses, government, and remote sites, the company serves more than 10 million customers daily in 6,000 locations. Sodexo, Inc., headquartered in Gaithersburg, MD, is a subsidiary of Sodexo Group (www.sodexo.com).
In 2006, the company's supply management team undertook a cost savings initiative program in order to create additional value for Sodexo and its clientele. One of the key initiatives identified in that program was energy and the associated savings that could be achieved for Sodexo's clients.
Success: The Loyalton Group helps Sodexo stay ahead of the competition
Sodexo tapped The Loyalton Group as their preferred energy management partner and rolled out an aggressive energy management solution for many of their client facilities, with an early emphasis on educational facilities. Program goals and milestones focused on energy and water usage and costs, benchmarking, energy procurement and risk management, facility audits, and carbon footprint reports – all factors critical in managing a client's long-term energy and sustainability needs.
Sodexo's Diane Korpas stated:
"The Loyalton Group was key in helping build our energy management strategy. They have walked side by side with us since the beginning and thanks in part to them, we now have a complete energy portfolio that allows us to develop an overall plan using a number of our vendor partners to construct cost efficiencies, infrastructure improvements, and secure our position of importance to our clients. They are helping us stay one step ahead of our competition."
In 2009, The Loyalton Group was awarded Sodexo, Inc's first annual National Spirit of Progress – Facilities Award. More information on this prestigious award can be found at http://www.sodexousa.com/blog/post/A-Tribute-to-Our-Supply-Partners.aspx.
More information about Sodexo can be found at the company's website www.sodexo.com.
Macerich
Situation: Redistribution of energy costs requires intense cost analyses and budgeting calculations
With a focus on high-growth, attractive U.S. markets, Macerich (NYSE: MAC) is a leading owner, operator, and developer of major retail properties in the U.S. Key markets include Arizona, California, the New York City metropolitan area, and suburban Washington, D.C., with an expansive national footprint.
Macerich's dynamic portfolio includes some of the country's highest-performing shopping centers, including Tysons Corner Center in Fairfax County, VA, Queens Center in New York City, and Scottsdale Fashion Square in Arizona. Total gross leasable area at 72 centers is approximately 75 million square feet.
In addition to providing energy procurement and risk management services, The Loyalton Group spearheads Macerich's environmental cost analyses and budgeting calculations –effectively redistributing utility costs across all tenants. This intensive and complicated work is often developed through engineering load studies, rate allocation methodologies and sub meter readings.
Success: The Loyalton Group exceeds client expectations
During an internal meeting in late 2008, Jeff Bedell, Vice President of Operations, was asked if The Loyalton Group could complete the normal year-ending utility redistribution project two months earlier than previous years. This enormous project would require the individual review and assignment of approximately 4,000 energy calculations for Macerich retail malls and their tenants throughout the U.S.
Jeff explained, "I knew, based upon our long partnership with The Loyalton Group and the proven quality of their work, that they would be able to meet this extremely aggressive schedule. I was able to commit to this aggressive schedule without hesitation and indeed, the Loyalton team delivered an excellent work product on time."
Additional information about Macerich can be obtained from the company's web site at www.macerich.com.
Starwood Hotels
Situation: Rising energy costs result in need for a qualified energy risk management partner
One of the leading hotel and leisure companies in the world, Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) has 960 properties in 97 countries and approximately 145,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator, and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis®, The Luxury Collection®, Sheraton®, Westin®, Four Points® by Sheraton, W®, Le Méridien®, and the recently announced AloftSM and ElementSM.
Faced with the rising cost of energy in their hotels (skyrocketing in some hotels), Starwood's global sourcing and engineering team conducted an exhaustive RFP in their search for a preferred energy risk management advisor. With a goal of stemming all controllable costs and mitigating price fluctuations, Starwood chose The Loyalton Group as their preferred energy procurement advisor for all owned, managed and franchised hotels.
John Chan, Vice President of Strategic Sourcing, led Starwood's efforts and stated:
"Our search lasted several months and included a review of over a dozen energy advisors as we searched for the optimal balance of: (1) strong strategic sourcing capability (to drive lowest energy prices); (2) low fees; (3) best customer service; and (4) hospitality experience. In a trial-bid we conducted during the due diligence process, The Loyalton Group demonstrated its ability to garner competitive supplier pricing and provide thoughtful strategic advice and analysis".
Success: The Loyalton Group contributes to multi-million dollar decline in energy expenses
Today, The Loyalton Group offers Starwood Hotels a comprehensive energy solution that starts with energy procurement and strategic advisory services, and spans through bill reconciliation and payment, existing building commissioning and facility optimization.
"To date, they've not only reduced our energy expenditures by millions of dollars but have seamlessly integrated their team of professionals into our operations" said Mr. Chan.
More information about Starwood can be found at the company's website www.starwoodhotels.com.
