Case Study: Transitioning from Hotel Management Company to Owned Brand in Seven Days
Property
Location: Sydney CBD
Type of Accommodation: Luxury Apartments
Number of Rooms: 90
Opportunity
A luxury serviced apartment provider located midway between the airport and city centre and in the process of exiting their agreement with an existing hotel management company when RevenYou were called in to help.
The property had new owners who wished to trade independently under a new name. As a result of this change of ownership and new commercial direction, the hotel was, fundamentally, starting from scratch – having to implement new technology platforms across revenue management and channel distribution while considering how their sales representation would be undertaken moving forward – all services that had been provided by the previous management company.
Actions
RevenYou visited the property to meet the new owner and spend time with the onsite team to understand the full scope of the project and determine what would be the best strategy moving forward – understanding that the client had a seven-day window to undertake a project that would normally take four-six weeks.
· After the visit, we completed the following activities:
Sourced a PMS, channel manager and booking engine suitable for the style of property, within the owner’s budget and could be implemented within the extremely short lead time of seven days.
Created all that is required to build a new PMS: create the room type names, descriptions, and source codes, identify their primary market segments, develop the property’s pricing strategy, and establish a comprehensive rate plan schedule.
Built the systems and had them live within the seven-day timeframe, whilst also training the onsite team.
Updated all third-party distribution partners to ensure the property’s new name was visible and mapped to the new channel manager with the new room types and rate plans.
Built Power BI reporting for increased visibility of revenue strategies and performance.
Implemented a sales strategy that contacted all current hotel clients and guests to ensure their continued business under the new ownership and name.
Implemented an ongoing revenue and distribution strategy that was designed to deliver a profitable return to the new owner.
Outcomes
Had the PMS, channel manager, booking engine and OTAs live within seven days of the change of ownership – establishing a new record with the PMS provider normally taking four-six weeks to set a system live – demonstrating what can be achieved with skilled and knowledgeable project managers involved.
Exceeded previous RevPAR, Occupancy and ADR figures within two months of change
Next Steps:
With plans to purchase additional accommodation providers in the coming years, and as an integral part of their team, we will continue to work with this property and the owner as they seek to consolidate and grow their new brand in
