Philips Signs Multi-Million Dollar Eco TV Deal, Industry's Largest To Date
If you're looking for true green innovation in the world of HDTV's than you don't have to look any further than Philips. Remember the Eco TV? After Starwood Hotels and Resorts, the name behind brands like Sheraton and Westin, realized that the average user of one its hotel rooms left their TV on for 6 to 8 hours per day, they decided to sign a 3-year deal worth up to $100 million with Philips. To, you guessed it, have over 80, 000 Philips SmartPower2 TV's as the Eco TV is known commercially, installed in their hotel rooms. Estimated to save Starwood more than $12 million over the expected 7 year lifespan of the equipment, the Eco TV installation will also cut energy consumption by 40% compared to the TV models currently in use.
This is supposedly the biggest 'green TV' deal to date, and impressive considering Philips is considered to be a second-tier home theater brand in our consumer world. Looks like the Netherlands-based company may have found a niche where they can be number one.
Via PR, read the full release after the jump.
NEW YORK --(Business Wire)-- Oct 27, 2008 Philips Electronics (NYSE:PHG, AEX:PHI) today announced the signing of an exclusive three year agreement with Starwood Hotels and Resorts, Inc. (NYSE:HOT) to provide Philips' latest range of SmartPower2 energy efficient televisions to Starwood's 460 properties across North America. The deal, which could be worth up to $100 million with existing opportunities and expected growth, will see industry-leading energy efficient televisions installed in new hotels and existing Starwood properties looking to convert to LCD TV technology for the first time.
In what is believed to be the biggest 'green TV' deal to date, this agreement is also expected to save the premier global hotel company more than $12 Million dollars in energy costs over the seven year lifetime of the equipment, and reduce energy consumption by up to 40 percent when compared with the televisions currently in use.
Philips will immediately begin installing these televisions, which are also available to consumers as the 'EcoTV'. Taking the recently announced growth targets of Starwood North America into consideration, at least 80,000 Philips SmartPower2 TVs will be installed over the course of the next three years.
This partnership impacts such well known Starwood brands as St. Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton, Four Points by Sheraton and Aloft. These 'Green' TVs will also be included in Starwood's newest hotel brand, Element, which is at the forefront of green hoteling, having recently announced that each of its hotels brand-wide are required to pursue the U.S. Green Building Council's LEED certification.
"This is a defining agreement for us, and is indicative of the fundamental change in mindset we have implemented around procurement and sourcing, and the partners we want to work with to achieve this," said Paul Davis, Senior Vice President of Global Sourcing at Starwood. "Philips has shown us that it is easy to simultaneously provide our guests with the very latest technology while making a sound business decision that significantly impacts costs and reduces energy consumption."
Televisions were an important area to address for Starwood in its search for energy efficiency. Starwood estimates that the average hotel television is operating for six to eight hours every day. Anecdotal evidence highlights that guests regularly leave their hotel rooms without switching off their television, while many hotels also like to welcome guests with a personalized message on the television screen in their room.
This deal continues an already successful relationship between Starwood and Philips, which has also been the exclusive provider of energy efficient lighting to the hotel group for more than two years. This lighting includes compact fluorescent (CFL) light bulbs for hotel rooms, as well as other energy efficient lighting for areas such as lobbies and building beautification.
A comparison of hotel rooms reveals some staggering saving numbers. While configurations differ for each hotel, there is on average one television and three light bulbs in each room, using approximately 455 Watts of energy daily. Replacing these with the Philips SmartPower TVs and Philips energy efficient Compact Fluorescent light bulbs, and energy consumption is reduced to 153 Watts, just one third of existing energy needs.
Philips currently has more than 6 million TVs installed in hotels worldwide, its success largely due to product built specifically for the Hotel TV market. The segment has consistently grown for Philips over the last 25 years, and is of increasing importance as Philips leverages its combined professional and consumer expertise to offer integrated solutions for this industry.
"This partnership with Starwood highlights Philips' ambitions to become a major sustainability and global innovation partner for the hotel industry," says Willem Houck, Head of Global Business Key Account Management for Philips Electronics. "Whether it be lighting lobbies around the world or choosing the right television when it is time for a replacement, we demonstrated to Starwood that there was no need to compromise on product quality in its goal to reduce the company's carbon footprint and achieve important environmental goals."
"For years we have been educating consumers around the world about how a simple switch in lighting can make a big difference to both their utility bill and the world's energy crisis. Now this simple switch is also available in the form of environmentally friendly televisions."
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified Health and Well-being company, focused on improving people's lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 128,000 employees in more than 60 countries worldwide. With sales of USD 42 billion (E27 billion) in 2007, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter.
About Starwood Hotels & Resorts
Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) is one of the leading hotel and leisure companies in the world with approximately 900 properties in more than 100 countries and 155,000 employees at its owned and managed properties. Starwood Hotels is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis(R), The Luxury Collection(R), W(R), Westin(R), Le Meridien(R), Sheraton(R), Four Points(R) by Sheraton, and the recently launched Aloft(SM), and Element(SM). Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwoodhotels.com.
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Posted by Justin Davey at October 27, 2008 11:13 AM