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Hotel Feasibility Study & Example

In over ten years of helping hotels to open and remodel successfully as a Hotel Revenue Management Consulting and Hotel Management Company , we have seen time and again at XOTELS how indispensable a hotel feasibility study is.

We have also seen how many would-be hoteliers simply assume that their vision will succeed, without conducting any notable research on building a hotel business that will be consistently profitable and competitive. 

In this article, we look at the steps involved in carrying out an effective hotel feasibility study and provide practical examples on how to obtain one effectively.

What Is a Hotel Feasibility Study? 

As the name suggests, a feasibility study investigates your hotel, resort, or hostel proposal to see if it is feasible as a sustainable and profitable business model. It does so by considering its viability relating to market, location, costs and financing. Typically, hotel feasibility studies are completed by external consultants who review the overall value and quality of the proposed project from an independent third-party point of view.

Below you will find a template and plan of approach our team of expert hotel consultants takes to put together a comprehensive validation report, based on the financial and market analysis, to determine the viability of a new hospitality project or lodging concept.

The Importance of a Hotel Feasibility Study

A feasibility study and hotel business plan form the cornerstone of your preparations for your new or remodelled hotel. It shows investors how they will receive a return on their investment (ROI, and if you´re able to stand out by producing an innovative hotel concept . It is therefore ill-advised to proceed without carrying out this crucial investigatory and illuminatory step.

How to do a Hotel Feasibility Study (Example)

1. location analysis.

Studying proposed sites for your hotel or resort aims to answer a number of questions critical to the success of your hotel project. 

• What makes the location an attractive site?
• Is there a supply of labour sufficient in number and quality?
• What human resource costs can be expected?
• Is the hotel supported by easy transport links?
• What are the potential risks and advantages associated with the local area?

2. Total Costs Calculation

Starting your own hotel business involves a large scope of expenses that have to be investigated including development and architectural costs that are incurred prior to opening. 

Then there are the operating overheads which the hotel will incur, including:

• Licences (consider government restrictions, taxes, zoning limitations, sustainability requirements)
• Franchising (whether it will be an independent or franchise hotel)
• Amenities (e.g. F&B outlets, swimming pool, spa, parking, and their upkeep costs)
• Human resources
• Inventories
• Electricity
• Future refurbishments

3. Local Hotel Supply and Demand Investigation

This involves analyzing all competition in the local area according to your selected concept type (hotels, resorts, hostels, apartments). Chiefly, their competitiveness. Information can be found on tourist boards, tour operators and travel research groups. Knowing local hotel supply and demand helps in projecting occupancy levels and rates for your hotel, one of the key elements in establishing its economic feasibility. Ask questions about competitors such as: ¨What has their performance been like during the past years in terms of ADR, RevPAR, and occupancy levels?¨.

4. Room Rates and Year-round Occupancy Levels

After establishing hotel supply and demand, your own hotel’s competitiveness, your projected operating costs, desired ROI, and crucially, benchmarking your competitor hotels, you can focus on room rates to see which ADRs (Average Daily Rate) you can anticipate. Year-round projections for demand will go a long way to informing your pricing decisions.

5. Establishing and Projecting Hotel Revenue Sources

The main sources of revenue for your hotel will come from room stays, food and beverage, and events such as conferences and meetings. Using your projections for average year-round room rates and occupancy levels, you can project sales from different revenue sources, including food and beverage, leisure and events (learn everything about these subjects in our online Revenue Management eBook or pdf version of our Revenue Management Book ).

6. Hotel Feasibility Study Projected ROI

One of the most important parts of your hotel feasibility study is the projected ROI. ROI is worked out by using a number of metrics, including internal rate of return ( IRR ), net present value ( NPV ), debt coverage ratios and discounted cash flow ( DCF ), as well as others. They help to show if the investment return is enough to proceed and if you will need to find financing from elsewhere.

If so, will the lenders of this capital be content with the projected ROI? If not, the hotel proposal can be abandoned altogether or it can be altered to make the return on investment attractive enough to proceed, such as changing site, tweaking room rates and reducing costs. A clear and comprehensive report is what banks, institutional or private investors (family offices) will be looking for.

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Hotel Feasibility Study Cost

Assembling a well-written and thorough hotel feasibility study is a comprehensive and time-consuming process. For this reason, feasibility studies don’t come cheap but as they always say: you get what you pay for. Ultimately, cheap means expensive in the long term or can even prevent you from getting your project off the ground since it will be tough to convince banks and other stakeholders that your concept is worthwhile and carries value for them.

Hotel Feasibility Study – The Final Word

As you can see, a hotel feasibility study is extensive, and with good reason. It gives you and all interested stakeholders such as other investors a much clearer picture regarding the costs involved, whether the return on investment is desirable, and helps in deciding how to proceed. 

A feasibility study is largely seen as an indispensable step, and our hotel consultants recommend this vital step is carefully completed for serious hotel proposals and accompanies the business plan in forming a blueprint for success.

Wishing you the best of luck in preparing your hotel feasibility study.

Patrick Landman

PS. Need help writing a solid feasibility study or business plan? XOTELS offers help through a wide range of hotel revenue management consulting services to get your plans on the right track!

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Home > Publications > Hotel Feasibility Study Methodology

Hotel Feasibility Study Methodology

A hotel feasibility study is generally required by the mortgage lender or investor before a developer or organization is able to move forward with constructing a new hotel. Typically completed by an independent third-party consultant who specializes in analyzing hotel projects, a feasibility study determines whether a proposed hotel development is economically feasible and if the value of the proposed project equals or exceeds the development costs when completed and operational. The hotel feasibility study will analyze revenues, expenses, and net income to determine the value of the proposed project compared to its projected development costs.

Given the economic and health concerns from COVID-19 in 2020, it remains imperative to consider the current development climate. A feasibility study will take into account the ramifications of the COVID-19 induced economic downturn and provide projections not only for market recovery, but also how the proposed development will perform after opening

This overview highlights the major components of a hotel feasibility study that should be analyzed as part of determining the potential success of a hotel.

Major Components of a Hotel Feasibility Study

The following major components should be included in a market feasibility and financial analysis study for a hotel project:

• Area, Demographic, and Neighborhood Analysis
• Site Review
• Proposed Development Recommendations and Costs
• Market Analysis
• Proposed Development Occupancy and Average Daily Rate (ADR)
• Financial Analysis
• Feasibility Analysis
• Comparison of Value Created to Projected Costs
• AREA, DEMOGRAPHIC, AND NEIGHBORHOOD ANALYSIS

The area, demographic, and neighborhood analysis evaluates the local economy surrounding the proposed hotel. The area analysis focuses on the social, economic, governmental, and environmental forces that influence the performance and valuation of a hotel property. Demographic information, including population, households, income levels, employment levels, etc., should be reviewed in detail to calculate the number of people and potential customers who live within the local and regional areas. The following are some questions the study should answer:

• Population trends: What is the area population and is the number increasing or decreasing?
• Household growth:   How large is the typical household?
• Household economics: What is the unemployment rate?  What is the median income? How much disposable income do area households have?
• Area economics: Which large corporations are based in the area? Who is growing or shrinking? What is office vacancy rate?
• Attractions: Are there tourist attractions in the area?  What are the demand generators for leisure and group travelers?
• Area transportation: How is access to airports, interstate and local highways, and rail stations compared to competition?

A neighborhood analysis of nearby commercial and tourist establishments is important since many successful hotel projects are proposed in areas with complementary real estate uses. Successful hotels are developed in neighborhoods where overnight guests are already traveling and looking for places to stay.

• SITE REVIEW

The site review evaluates the subject parcel’s size, access and visibility, topography, availability of utilities, and other site-related attributes necessary for a successful hotel project. The hotel’s proximity to demand generators is an important consideration since hotel guests appreciate convenient access from area highways, employers, and their destinations. The following are some questions the study should answer:

• Site: Is the site large enough to support the planned hotel?  Is there room for future expansions?
• Amenities: Are there nearby amenities that would complement the proposed project?
• Governmental impacts: How do the subject’s ad valorem taxes, zoning, sales history, governmental restrictions, environmental regulations and other factors affect the subject property?
• PROPOSED DEVELOPMENT RECOMMENDATIONS AND COSTS

The consultant will review plans for the facility, the scope of the development and projected costs to make recommendations for the proposed hotel. The scope of recommendations includes the number of guestrooms, number of restaurants and lounges, amount of meeting space, recreational and aquatic features, retail shops, spa and other amenities to include.

The consultant may estimate a range of costs for the proposed development based upon recently-constructed projects, or the client may hire an architect and/or engineer for formal cost estimate for the proposed hotel. The following are some questions the study should answer:

• Physical plant information: Have any architectural plans been developed?
• Facility size: How many rooms should the hotel offer? How many food and beverage outlets should be developed within the hotel?
• Branding: Should the hotel have a franchise affiliation or be an independent property?
• MARKET ANALYSIS

A thorough market analysis of the local and regional hotel market is essential as the projections of financial performance will depend heavily upon the data gathered. The consultant will analyze occupancy, average daily rate (ADR), and revenue per available room (RevPAR) of a market area. A hotel market report from STR and interviews with management of competitive hotels will help the consultant gain a greater understanding of the state of the hotel market. Additionally, the consultant will identify all new hotels that are proposed, under construction, and in development that could compete with the proposed resort project. The following factors are critical to the market analysis:

• Hotel competitors:   How many competitors are in the market and to what degree are they competitive in terms of amenity offerings, affordability, etc.?  How have they performed in past years in terms of occupancy, ADR and RevPAR?
• Employer analysis: Who are the major employers that utilize hotels in the market? What are their training needs? Are there many meetings in the market?
• Recent hotel openings:   How many hotels have opened in recent years and how have they impacted the market?
• Potential hotel openings:   How many hotel projects are in the works?  What types of hotels will they be?  How many rooms will they have?  What is their projected impact on the current supply and demand in the market?
• Market segmentation and market penetration: What is the market segmentation and penetration of each competitor in the market?  The consultant will review all market segments, including corporate, leisure, group, and contract markets. Hotels in the area that garner the largest share of the most relevant market segments will be the subject property’s main competitors.
• Projections:   Based on the current market situation, how will the subject likely perform in terms of occupancy, ADR, and revenue per available room (RevPAR)?  What are its potential penetration rates and market segmentation?
• PROPOSED DEVELOPMENT OCCUPANCY AND ADR

In estimating the performance of a hotel, the study will project the number of occupied rooms, ADR, and revenue per available room for the proposed hotel property. A detailed supply and demand model that calculates the historical performance of the market and makes projections for the subject property should be presented. The following are some questions to consider:

• Occupancy and ADR: What are the historical and projected performance of  competitive hotels in the market? How will the subject property penetrate the existing demand in the commercial, group, leisure, and contract segments? What is the projected ADR by segment?
• Demand:   What is the projected performance of the subject property?  How plentiful are demand generators in the area?  Will the projected demand for the hotel be spread among numerous organizations and attractions or will it be concentrated on a few demand generators?

FINANCIAL ANALYSIS

The financial analysis estimates a property’s capacity to generate income and makes financial projections for the property. Estimating annual operating results for the subject property involves an analysis of the subject’s scope and characteristics compared with comparable properties and industry standards. The general steps include the following:

• Estimate the potential gross revenues for the subject property based upon an examination of the prior operating history of the subject property (if available), operating history of comparable properties in the subject market area and on a national basis, and an analysis of industry trends.
• Analyze departmental, undistributed, and fixed expenses, and project appropriate amounts in each category.
• Project the resultant net operating income (cash flow before debt service) over an appropriate holding period.

HOTEL FEASIBILITY ANALYSIS

The economic value of a hotel is calculated through a discounted cash flow analysis or a direct capitalization analysis. The discounted cash flow analysis utilizes the property’s projected net income before debt service for a period of 11 years and applies a discount rate and terminal capitalization rate to determine the valuation. The discount rate is the average annual rate of return necessary to attract capital based upon the overall investment characteristics. The terminal capitalization rate is applied to a future year’s net income to calculate a potential sale price for the property in the future.

COMPARISON OF VALUE CREATED TO PROJECTED COSTS

The key component of a feasibility study is to determine if the projected value created as shown from the discounted cash flow analysis equals or exceeds the development cost for the proposed project. A feasibility study should present the projected value created after a detailed analysis of the factors that determine success of the proposed properties. In some cases, detailed costs will not be available, and this conclusion will be determined after the client has cost estimates performed by building contractors and architects. In other cases, the client has estimates of construction costs, and the feasibility study will present these estimates and compare the value created to the development costs to determine if the project is feasible. The most viable projects, which have the greatest investor appeal, are those in which the value created is greater than the development costs for the proposal. Even if the value created is less than the development costs, the project may still be feasible if the project can attract municipal incentives such as a tax abatement or capital assistance to the developer in terms of infrastructure. This would allow for either improved financial projections or for lower development costs.

Conclusion: The hotel feasibility study requires analysis and expertise beyond other types of commercial real estate. A hotel or resort feasibility study requires a thorough market analysis involving a study of the economic and demographic factors as well as a review of the hotel market. The study also requires a complete financial analysis, which looks at various revenue and expense categories. The purpose of the feasibility study is to provide honest and reliable information to the client to help them decide whether to develop their proposed hotel project.

Author: David J. Sangree, MAI, CPA, ISHC is President and Founder of Hotel & Leisure Advisors, a national hospitality consulting firm. David is a graduate of the Cornell University School of Hotel Administration and an MAI designated appraiser with the Appraisal Institute. In addition, he is a member of the International Society of Hospitality Consultants and is a Certified Public Accountant. As an expert in the hospitality and leisure field, David analyzes hotels, resorts, waterparks, amusement parks, conference centers, ski resorts, casinos, and golf courses. He has prepared more than 3,000 market and financial feasibility studies, appraisals, operational reviews, and site selection studies in over 50 states and provinces in the United States and Canada. He has been an active hospitality consultant since 1987 and has 10 years of work experience in the hotel/restaurant industry, including management positions with four Westin Hotels properties. Since 1987, David has provided consulting services to banks, hotel companies, developers, management companies, and other parties involved in the lodging sector throughout the United States, Canada, and the Caribbean. He would like to thank Heidi Banak for her assistance with this article.

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A Guide to Hotel Operations Management

For a hotel to run successfully, interlocking departments and procedures must operate simultaneously, like individual gears in a massive clock. Thousands of individual tasks must be executed correctly and in succession for things to run smoothly. Having a proactive hotel operations management strategy can help make that happen. Optimizing hotel operations can also lead to increased revenue, occupancy levels, and guest satisfaction, but failing to focus on operations could cause hotels to fall behind in increasingly competitive markets.

In this post, we take a deep dive into hotel operations management. We break down what hotel operations are and discuss how they impact each department, employee, and guest. We review real-world best practices, automated tools, and helpful resources hotels can use to improve day-to-day and long-term operations. If you’re looking for ways to speed up time-consuming and error-prone manual processes, increase productivity, improve the guest experience , or boost team morale, you’ve come to the right place.

The ins and outs of hotel operations management

What is hotel operations management.

Hotel operations management is precisely what it sounds like: the process of managing hotel operations. It is the process of skillfully deploying resources, equipment, finances, and staff to optimize daily efficiency and maximize hotel profitability . From anticipating expenses and choosing software systems to scheduling staff and collaborating with other managers, hotel operations management encompasses every operation that keeps the business up and running.

Direct and energetic operations management can improve a hotel’s efficacy and efficiency. Efficacy describes the ability to get things done, and efficiency is the process of getting things done in the most economical way. Successful hotels have worked out how to complete daily tasks quickly, efficiently, and in high volume.

Are there different categories of hotel operations?

Although hotel operations management describes the entire process of overseeing hotel efficacy and efficiency, each department has separate roles, goals, resources, and responsibilities. To grant your property the highest chances of success, work to optimize every category of hotel operations, including:

• Front Office • Food & Beverage • Maintenance • Housekeeping • Sales & Marketing • Meetings & Events • Revenue/Finances • Management • Guest Services • Hiring/Training

Smooth, seamless, and well-managed hotel operations are at the core of optimal property performance and a satisfying guest experience. Hotel managers can improve how the entire property operates by ensuring each department has strong leadership and performs at peak efficiency.

Why is managing hotel operations so important?

Hotel operations management is about understanding what guests want from a hotel and giving it to them, while simultaneously increasing hotel profits. Proper budgeting, resource allocation, technology utilization, and staffing are necessary to meet and exceed guest expectations. Managers can meet these goals by proactively managing the complex web of hotel operations without overworking team members or sacrificing service.

Who is in charge of hotel operations management?

At many hotels, the general manager also functions as the operations manager, as numerous responsibilities overlap. Focused-service hotels may split the duties between a GM and an AGM. In contrast, specialized managers are frequently hired to oversee more complex operations at large properties, luxury hotels , and full-service hotels. As each hotel department performs separate roles and specific procedures, interdepartmental hotel operations management is crucial, with a leader guiding each department to peak performance.

What does a hotel operations manager do?

The operations manager at a hotel is responsible for utilizing hotel tools and resources in the most efficient way possible. They oversee the performance of each department, from maintenance to the front office, ensuring that each department fulfills its role and enabling the entire hotel to run like a well-oiled machine.

In addition to managing big-picture operations, an operations manager has a wide range of responsibilities, including:

• Creating and implementing hotel Standard Operating Procedures and best practices • Interviewing, hiring, and onboarding new employees • Training staff on new processes, procedures, and technology • Ensuring that all employee certifications, licenses, and safety training requirements (e.g., Americans with Disabilities Act compliance, first aid certification) are up to date • Providing excellent customer service to customers • Creating efficient service spaces where employees and guests interact • Managing quality assurance procedures and programs • Helping the hotel meet budget, revenue, and business goals • Quickly resolving guest complaints • Finding fast resolutions to problems that could affect guest satisfaction levels, such as maintenance projects or amenity outages

The operations manager is also responsible for tracking the hotel’s overall performance . They provide hotel performance reporting to on-property leaders, including fellow managers, directors, and department heads. Many host team meetings regularly to review budget and resource allocation, discuss the implementation of new procedures, review departmental expenses, and more. With a clear picture of how well the hotel has been operating, they may choose to refine or switch up the current hotel operations management strategy.

Which software systems do hotels use to manage operations?

Robust hotel management systems, like the property management system (PMS), revenue management system (RMS), and point of sales system (POS), can supercharge hotel operations, significantly reducing the time and employee power required to complete everyday tasks. Furthermore, hotels with integrated systems have access to a wide range of essential market metrics and property performance data at their fingertips.

Modern PMS systems give hotel staff broad check-in and checkout capabilities, housekeeping management tools, and robust data security. With a powerful PMS, the Front Office team can operate more efficiently, reduce data errors, and spend more time focused on serving guests than manually entering reservation data. Outside of selling guestrooms, the PMS manages most hotel tasks, with modern integrated systems allowing hotel employees to communicate quickly, share updates, mark tasks completed, and more.

Choose hotel booking software that provides the front desk team access to real-time hotel details and room status updates, enabling them to assign rooms as soon as they are ready. If the housekeeping team notices major repair needs, they can quickly place the room out of order and notify maintenance that an issue requires their attention. Maintenance can use the PMS to provide project updates, close open repair tickets, and schedule room repairs in advance, allowing the front office to make room assignments in the least disruptive manner.

Integrating a third-party RMS with the hotel PMS can optimize various revenue management operations, from rate loading and inventory control to add-on availability and yield management. Instead of manually reviewing future reservations to identify occupancy trends, demand shifts, or drops in booking pace, revenue managers can quickly survey all channels for accurate analysis of minute-to-minute market reporting. With this data, they can make fast, impactful decisions, including whether they should:

• Raise or lower rates • Release or restrict inventory • Close high-demand dates • Implement booking restrictions • Limit specific booking channels

Integrated hotels that use competitive insights tools have access to real-time demand reporting. They can run future forecasts, rate shop the competition, track shifts in demand, analyze competitor RFP responses , and more, significantly increasing the speed at which hotel managers can recognize and react to market changes.

A comprehensive hotel POS system manages all of the property’s sales, including restaurant sales, sundry shop exchanges, and spa package purchases. A modern POS system can enable hotels to speed up various day-to-day sales-related tasks, including:

• Reservation management • Inventory tracking • Preauthorization procedures • Payment processing • Billing & invoicing

Integrated POS systems receive information from the RMS and PMS to reflect pricing and billing changes as soon as they occur. The F&B team can automatically attach dining charges to the guest’s room, streamlining the billing process. After checkout, housekeeping can tally mini-bar charges and post them directly to the room’s bill, helping the property recoup expensive amenity costs. An automated sales system can reduce chargebacks and billing inaccuracies caused by manual entry mistakes.

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Tips & tools for improving hotel operations management

Whether you’re stepping into operations for the first time or are looking for innovative ideas to invigorate your hotel’s operations management strategy, we’ve compiled a list of tips, tools, and best practices to help.

1. Stay organized. Use a master hotel operations checklist that outlines the daily to-dos the operations manager must complete.

2. Never stop training. Keep staff updated with policy changes and continue training employees on new and improving technology, guest service procedures, safety, and wellness. Cross-train employees to boost productivity and empower your staff.

3. Automate hotel reservation procedures. Set up automated email and text services to communicate important reservation information to guests. Automatically send booking details , confirmation information, deposit requirements, and check-in reminders based on the guest’s arrival date, freeing up the front desk for other activities.

4. Use the PMS to improve financial management. Access invoicing functions, revenue reporting, and petty cash tracking. Manage OTA commissions, accounts receivable, debts, deposits, and more, all in one place.

5. Embrace technology in every department. Hotel technology can optimize operations all over the hotel, not just at the front desk. Digital checklists, robotic vacuums, and air purifiers would help the housekeeping department. Digital menus, room service apps, and automated billing could make life easier for the restaurant team. Look for tech opportunities everywhere, as optimizing operations in one area could boost performance for the entire hotel.

6. Improve the management of hotel groups. Maximize the efficiency of group booking operations using automated and intuitive software. Not only will it save you time, but many of those manual and time-consuming processes can be simplified down to a few easy steps.

7. Eliminate back-and-forth with planners. Use room block software to create custom group booking websites , automate data collection, and more. Give group planners the ability to assign rooms, make rooming list updates, and change guestroom assignments as needed, freeing up your sales team to focus on uncovering new business opportunities.

8. Invest in your team. You get out of your employees what you put into them. Create a strong workplace culture by investing in employee training, benefits, and career growth opportunities.

9. Listen to feedback. Improve your operations management style by putting constructive input to good use. Encourage guests, employees, and other managers to share feedback freely and honestly in a respectful manner. Anonymous surveys are fantastic tools for engaging hotel employees and enticing honest answers from apprehensive team members.

Frequently asked questions about hotel operations management

1. What makes a good hotel operations manager?

To be a successful hotel operations manager, you must be present and available for employees and guests. A good operations manager checks in often. They are there to handle day-to-day questions, concerns, guest complaints , employee issues, and any other problems that may arise at the hotel.

2. Do hotel operations managers have to report to higher-ups?

At franchised properties, branded hotels, and chain accommodations, the operations manager may also be responsible for providing executive managers (i.e., owners, operators, or regional heads) with performance reporting. Higher-ups may request a comprehensive accounting analysis, detailed market reporting, hotel revenue tracking , or other KPIs at any time. Using above-property business intelligence reporting , operations teams can provide a big-picture analysis of hotel and marketing performance, illustrate progress toward property goals, or even make a case for improved resource allocation using data from multiple brands.

3. What is “waste reduction” in hotel operations management?

Reducing waste is an integral component of hotel operations management, encompassing more than limiting physical waste. In addition to implementing comprehensive waste management systems, operations managers are tasked with reducing financial waste, reusing materials appropriately, allocating inventory, and maximizing hotel recycling efforts .

Bookmark this guide to hotel operations management!

Now, you’re equipped with the knowledge and tools needed to improve operations at your property. Meet with fellow managers and department heads to discuss which hotel operations management strategies will benefit your property, staff, and guests. Work together to formulate the best operating procedures for your unique needs.

Up next, we continue our exploration of hotel operations by providing hoteliers and managers with actionable management strategies. We look at ways to combat staffing shortages, explore the value of cross-training, review risk reduction procedures, and more. Follow along and learn how to improve hotel operations in seven simple steps .

Kim Campbell

Kim is a full-time copy and content writer with many years of experience in the hospitality industry. She entered the hotel world in 2013 as a housekeeping team member and worked her way through various departments before being appointed to Director of Sales. Kim has championed numerous successful sales efforts, revenue strategies, and marketing campaigns — all of which landed her a spot on Hotel Management Magazine’s “Thirty Under 30” list.

Don’t be fooled though; she’s not all business! An avid forest forager, post-apocalyptic fiction fan, and free-sample-fiend, Kim prides herself on being well-rounded.

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Evaluating hotel performance: 6 key factors

September 15, 2020 •

8 min reading

The clear-cut measurability of KPIs is alluring. Occupancy percentages, profit indicators, return on investment. These are the type of traditional performance measures on which many hoteliers rely when it comes to evaluating hotel performance. Unfortunately, taken in isolation, they are now thought to provide misleading signals, failing to adequately support the needs of today’s organizations.

In order to capture the full picture of hotel performance, additional factors must be borne in mind. Does your hotel take safety seriously? Does it embrace innovation? Are you providing service excellence to your hotel guests? A more holistic view of the role your hotel plays in today’s hospitality landscape yields a more representative impression of its performance.

How to evaluate hotel performance? Drawing on EHL Advisory Services' experts , we have compiled the six elements that require your scrutiny. We give you: The X-factors of hotel performance.

It goes without saying that, like any other commercial business, hotels are primarily profit-driven enterprises. This requirement sees hotels pursue strategic management accounting techniques , such as cost optimization, value chain analysis and benchmarking. In doing so, they may choose between a market-orientation or sales-orientation business strategy to optimize their financial outcomes. Equally, they may opt for a more a traditional rooms-revenue model or lean towards a total revenue management approach , while the IT-savvy may seek to future-proof their business by incorporating data science into their revenue management.Various key performance indicators (KPIs) can be used to assess a hotel’s financial performance. Is the business recording a solid return on its investments (ROI)? Are hotel operations as efficient as they could be? This includes factors such as the average length of stay (ALOS), whereby longer average stays are correlated with greater profitability thanks to the minimization of labor involved in turning over rooms and processing new bookings. The gross operating profit per available room (GOP PAR) also provides valuable insights by pinpointing which areas of your hotel generate the most income and taking operational costs into consideration.

Want to assess the performance of your hotel? Take the EHL Pulse Taker evaluation online now.

Sales performance.

Clearly, “finance” is a very broad topic which is influenced by a whole host of subset aspects. Chief among these is sales performance. Whether a hotel’s sales skyrocket or dwindle is influenced by a multitude of factors. Some of these are under the hotel’s control: its marketing activities – is it leveraging its online marketing potential? – or the extent to which it is succeeding in tailoring its offerings to specific segments. Other more “environmental” or market-driven aspects are nigh on impossible to control: the rise of Airbnb or the sudden loss of incoming tourists due to the COVID-19 health crisis. What sets successful hotels apart is how they choose to react to these situations.

Metrics such as the revenue per available room (RevPAR), the average daily rate (ADR) or the average occupancy rate (OCC) can be used to measure sales performance.

The market penetration index (MPI) and the revenue generated index (RGI) can help evaluate how a hotel is performing on the market. While the MPI will tell you how many guests are choosing your hotel in comparison with other hotels in your location (results in excess of 100 being good and those under 100 being an indicator of poor performance), the RGI compares your hotel’s RevPAR to the average RevPAR on your market (results equal to or greater than 1 being good and those under 1 lacking).

Asset management

Various factors feed into the success of a hotel’s asset management , which, in turn, contributes to financial performance. A hotel’s location, real-estate value and even furniture, fixtures and equipment (FF&E) all play a part here. In a nutshell, asset management aims to maximize the value of hotel property.

Overviews and detailed analyses of hotel businesses on the whole can yield useful information on the revenue generated by different asset categories – how much different room types bring in, how profitable the restaurant is or how lucrative the spa area has become, for instance. A combination of operational and property knowledge allows hotel asset managers to identify potential new streams of income. Assets can also be better leveraged by completing strategic refurbishment projects or considering acquisitions, for example.

Service excellence

As you can tell from the above three X-factors, hotel performance remains well characterized by certain traditional criteria. To be clear, we are not suggesting the wheel needs reinventing as regards hotel performance evaluation. It simply requires a few more spokes to round off and relativize any insights gained from metrics.

No other X-factor better exemplifies this more holistic approach to hotel performance evaluation than service excellence. Service excellence is “ the ability of service providers to consistently meet and occasionally even exceed customers’ expectations ”. This strong orientation towards guest satisfaction relies upon various efforts and strategies, such as reliably delivering on promises, providing a personal service and pro-actively managing customer feedback. Providing service excellence is a challenge – and doing so consistently, to the point where people seek out your hotel thanks to this virtue in particular, requires a comprehensive service culture as embodied by the likes of the Ritz-Carlton .

Success in service excellence keeps guests coming back for more and the enthused reviews rolling in. So much so that there has been speculation as to whether it is the new marketing . It can be assessed with the help of review scores, and customer focus and brand standard evaluations, for example. An integral component of business viability in today’s hospitality landscape, service excellence deserves a seat at the table in the evaluation of hotel performance.

Innovation in the hotel environment can be found in review processes, by consulting consumer trends and employing fitting IT systems, for instance. The Hospitality Innovation Industry Report distinguishes between technological and non-technological innovation.

Current innovation trends in the hospitality industry include sustainable tourism , voice search and the instrumentalization of big data. The ever-expanding list includes facial recognition check-in and mobile room keys. Hotels’ ability to keep up with the times simply must feature among contemporary X-factors, while recognizing disruptive innovation ahead of time can set hotels apart.

Health and safety

When you think “health and safety”, think “risk analysis, quality labels and safety procedures”. It has always been important for hotels, as employers, to keep a close eye on workplace health and safety. Guests, too, want to spend their time in a clean, hygienic, safe environment. Meeting food safety standards is crucial for any hotel restaurant, and your legal team will thank you for staving off any potential lawsuits arising from safety-related liability issues, of course.

The COVID-19 pandemic has shone a particularly bright spotlight on health and safety. The respective regulations have become far more stringent, and guests’ expectations have become significantly higher in a very short space of time. In response to this, major hotel brands, such as Hilton , Four Seasons and Accor , have made it their mission to instill confidence in their customers by implementing strict protocols . EHL Advisory Services is also doing its part .

Evaluating hotel performance not only in financial terms but with a view to long-lasting success thus relies upon much more than your average metrics. This wider set of strategic, financial and operational dimensions is better able to reflect the reality of hotel performance in order to be a successful hotelier, gain a comprehensive view of performance drivers, understand how your hotel’s performance stacks up against the competition and implement continuous improvement plans. Should you need a little help appraising where you stand, EHL Advisory Services’ p ulse-taker will point you in the right direction.

Wishing you every success!

Consultant at EHL Advisory Services

Keep reading

Guest experiences: Importance of emotional engagement and culture

May 15, 2024

Creating memorable guest experiences: Personalization with storytelling

May 08, 2024

Hospitality management careers list for hotel enthusiasts

May 07, 2024

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Data Model for a Hotel Management System

Jorge Sandoval is a professor at the Florianópolis Institute of Higher Education (IESGF) in Brazil, where he teaches and researches data science, Artificial Intelligence, machine learning, deep learning, and energy and time series forecasting. He also serves as a consultant specializing in data science, Artificial Intelligence, and machine learning for state government sectors like law enforcement and healthcare.

• database design
• example ER diagram

Putting hospitality into visual form with a hotel management system ER diagram.

Consider a busy hotel with efficient check-in and check-out procedures, careful management of room reservations, and many room assignments. Behind the scenes of this orchestrated harmony, a complex database diagram meticulously guides the delicate interaction of guest data, room availability, and financial transactions.

This article delves into the entity-relationship diagram (ER diagram or ERD) for a hotel management system, methodically revealing the countless mechanisms that underpin this operational symphony. We will look into the complex relationships between things like hotels, rooms, visitors, bookings, staff, and payments. We’ll illuminate how important a well-designed database diagram is to providing the seamless experiences that today's travelers demand.

What Is a Data Model? What Is an ER Diagram?

The structure of a database system is shown visually in an entity-relationship (ER) diagram , or ERD, which is used in database design. The main components of it are entities, attributes, and the connections between these entities. Entities represent objects or concepts, like customers, products, or orders, while attributes describe the properties or characteristics of these entities.

Two fundamental ideas in database design—relationships and foreign keys—serve various functions and roles. A relationship is a logical link that connects two database tables and creates a connection between the records in those tables. Business rules and regulations determine these relationships, which may be one-to-one, one-to-many, or many-to-many.

A table's foreign key, on the other hand, is a column or combination of columns that refers to the primary key of another table. The table whose primary key the foreign key references is known as the referenced or parent table, and the table containing the foreign key is known as the referring or child table.

The use of a foreign key to ensure referential integrity in the database also ensures the correct maintenance of the relationship between the tables. The number of possible relationships between two entities is expressed using cardinality notations like one-to-one, one-to-many, or many-to-many.

Using ER diagrams makes it simpler for developers and stakeholders to grasp the structure of the system; these diagrams offer a clear and succinct way to communicate the database schema.

Making conceptual, logical, and physical models is a part of database design. Let’s quickly talk about the differences and uses of these models.

The conceptual model, which is frequently developed as part of the initial design process, is a high-level representation of organizational data. This model often contains entities, their connections, and the characteristics of the data. It excludes specific attributes and primary or foreign keys.

Unlike the conceptual model, the logical model adds attributes and primary/foreign keys to the entities and relationships. It depicts the conceptual organization of the database's contents, but it excludes practical information like storage, indexing, etc.

The physical model is adapted from the logical model for a specific database management system (DBMS), such as MySQL, PostgreSQL, Oracle, etc. It covers all of the physical characteristics of the database, including the storage architecture, access routes, DBMS-specific data types, and indexing. It is the most thorough model.

For the database model to function as a database, a number of conditions must be met. Security, accuracy, and data consistency should be given top priority. This implies that each piece of data entered into the system must be accurate and that the model must impose constraints to maintain data integrity. Additionally, the database should guard against unauthorized access to private information, like guest information and payment information.

Flexibility and scalability are also essential to adjust to changing business needs. The database’s future growth should be possible without a complete redesign. As the hotel industry develops, the model should be adaptable enough to incorporate new room layouts, services, and reporting needs.

To make maintenance and troubleshooting easier, the database model should be well documented.  To help developers and administrators comprehend and effectively manage the system, a data model should have clear naming conventions, data dictionaries, and explanations of the schema .

Why Are Data Models for Hotel Database Management Required?

Modern hotels require a hotel management system because it is essential to both their ongoing success and their daily operations. This is accomplished, among other things, by centralizing and streamlining important processes like reservations, check-ins, check-outs, room assignments, billing, and guest services.

Processes are being simplified, which improves operational efficiency and the total guest experience. Hotel personnel can quickly and accurately access guest information, manage room inventory, and handle bookings via a management system; this ensures that rooms are always prepared for new visitors. This degree of productivity is essential for providing outstanding customer service, which in turn encourages favorable feedback from visitors, repeat business, and a solid reputation within the sector.

A hotel management system also offers insightful analytics. Hotels may make wise judgments by gathering and analyzing information on occupancy rates, revenue sources, booking trends, and guest preferences. For instance, they can determine peak booking times, adjust hotel rates based on demand, and target particular consumer demographics with marketing campaigns. This data-driven strategy helps hotels become more profitable while also maintaining their competitiveness in a changing industry.

For example, think about what sets Airbnb apart. A key factor is its digital platform, which is essentially a digital hotel management system. It exemplifies the strength of a system that has been painstakingly designed, allowing millions of hosts all over the world to easily manage their listings, bookings, and interactions with guests.

The Airbnb business model shows that, in the current digital era, an efficient hotel management system is essential for both conventional hotels and cutting-edge platforms.

Building a Hotel Management Data Model

Creating a hotel management system data model involves a systematic process of identifying the entities and their attributes, relationships, and cardinalities to accurately represent the structure and functionality of the system. Here's a detailed breakdown of how such a model is typically created:

1. Identify Entities

The first step is to identify the main entities in the system. In the case of a hotel management system, key entities include the hotel, room, room type, guest, booking, staff, and payment. These represent the primary objects or concepts in the hotel management domain.

2. Define Entity Attributes

For each entity, define its attributes or properties. For example, for the Guest entity, attributes could include FirstName , LastName , DateOfBirth , Address , Phone , and Email . These attributes describe the characteristics of each entity and the information that needs to be stored.

3. Determine Relationships

Analyze how these entities are related to one another. For instance, a Booking is related to both a Guest and a Room , as it involves a guest making a reservation for a specific room. These relationships are crucial for understanding how data flows and how different parts of the system interact.

4. Establish Cardinalities

Cardinality describes how many instances of one entity are related to another entity. For example, in the relationship between Booking and Room , it could be one-to-one (if each booking corresponds to one room), one-to-many (if a booking can include multiple rooms), or many-to-one (if multiple bookings can be associated with one room).

5. Create an Entity-Relationship Diagram

Entity-relationship diagram development requires knowledge of both the logical and physical models of database design. The ERD in the logical model represents the logical structure of the data, including entities, characteristics, and relationships.

We want to store information about objects or concepts called entities, attributes (entities’ traits or properties), relationships (the connections between those entities), and relationship cardinalities.

Understanding the database's data structure, relationships, and constraints is made easier thanks to its logical representation. The ERD acts as a guide for how the database will be implemented in the physical model. In addition, it contains information about the table structures, column data types, and index structures that are particular to the database management system being utilized.

In addition, the model provides information on the indexing, access paths, and storage structure, all of which are crucial for the implementation and improvement of the database. As a result, defining the logical structure of the data and then translating it into a physical model that can be utilized by a DBMS constitutes the process of creating an ERD.

6. Refine and Normalize

Review the model for completeness and accuracy. Normalize the model to reduce redundancy and ensure data integrity.

7. Add Additional Details

You might need to add more information to the model (such as constraints, keys, and data types for attributes), depending on the system's complexity and the particular requirements.

8. Implement in a Physical Database

Once it has been finalized, the model can be implemented in a database management system. To do this, tables must be created and their fields, relationships, and constraints must be based on the ERD.

A hotel management ER diagram is shown below: 

Understanding Entities, Attributes, and Relationships

Entities and attributes.

Entities are the main objects or concepts in a database; they represent distinct categories of information. They are typically organized into tables within the database. For example, hotel management system entities could include Hotel , Room , Guest , and Booking .

Attributes, on the other hand, are the characteristics or properties that describe entities. They define what specific information is stored for each entity. For instance, attributes for the Hotel entity might include HotelName , Address , and Star Rating ; each provides details about a hotel's identity and features.

Entities and attributes collectively structure and organize data within a database, ensuring that information is efficiently stored and managed.

Let’s look at the entities and attributes in our hotel management data model.

The Hotel entity represents an individual hotel property within the system. It serves as the core entity around which all other operations and entities revolve. It stores essential information about each hotel, such as its name, physical address, contact details (phone and email), star rating, check-in time, and check-out time. This data allows the system to manage hotel-specific data and provide accurate information to guests during the booking, check-in, and check-out processes. Its attributes are:

• HotelID : A unique identifier for each hotel. It serves as the primary key for this entity.
• Name : The name of the hotel, providing its distinct identity.
• Address : The physical location of the hotel.
• Phone : The contact phone number for the hotel.
• Email : The contact email address for the hotel.
• Stars : The star rating or level of the hotel, indicating its quality and services.
• CheckinTime : The time at which guests can check in.
• CheckoutTime : The time at which guests are expected to check out.

This table's SQL code is:

2. RoomType

The RoomType entity defines the various categories or types of rooms available in the hotel, categorizing rooms based on their features and pricing. It records and stores information like the type's name, description, price per night, and maximum guest capacity. This data assists in room inventory management, pricing strategies, and helping guests choose rooms that best suit their needs and budget.

• TypeID : A unique identifier for each room type and this table’s primary key of this entity.
• Name : The name of the room type (e.g., Standard, Deluxe), defining the category.
• Description: A brief description of the room type, offering additional details.
• Price per Night : The cost of renting this type of room per night.
• Capacity : The maximum number of guests the room type can accommodate.

The following is this table's SQL code:

The Room entity represents individual hotel rooms, serving as the primary entity for room-related operations and management. Each Room record includes a unique RoomNumber and is associated with a specific Hotel and RoomType . The Room entity also tracks the room's status (e.g., available, occupied, or under maintenance), enabling the system to manage room assignments, occupancy, and maintenance schedules.

• RoomNumber : A unique identifier for each room and the primary key of this entity.
• HotelID : A reference to the hotel the room belongs to, establishing a relationship with the Hotel
• TypeID : A reference to the room type of the room, establishing a relationship with the RoomType
• Status : The current status of the room, which assists in managing room availability.

The Guest entity captures information about the hotel's guests, forming the basis for managing guest stays and services. It stores essential guest details, such as their name, date of birth, address, and contact information (phone and email). This allows the hotel to personalize services, maintain guest histories, and facilitate communication with guests.

• GuestID : A unique identifier for each guest and the primary key of this entity.
• FirstName : The guest's first name.
• LastName : The guest's last name.
• DateOfBirth : The guest's date of birth, for age verification and personalized service.
• Address : The guest's address.
• Phone : The guest's phone number.
• Email : The guest's email address.

The Booking entity manages reservations made by guests for specific rooms on specific dates. Each Booking record is associated with a Guest and a Room , along with check-in and check-out dates. The Booking entity calculates the total price for the stay and assists in managing room availability and guest arrivals and departures.

• BookingID : A unique identifier for each booking and the primary key of this entity.
• GuestID : A reference to the guest making the booking, establishing a relationship with the Guest
• RoomNumber : A reference to the room being booked, establishing a relationship with the Room
• CheckinDate : The date the guest plans to check in.
• CheckoutDate : The date the guest plans to check out.
• Total Price : The total price for the booking.

The Payment entity stores financial transactions related to guest bookings and services. Each Payment record is linked to a specific Booking , detailing the payment amount, date, and method (e.g., credit card, cash). This entity helps in tracking and managing payments, ensuring accurate billing and financial reporting.

• PaymentID : A unique identifier for each payment and the primary key of this entity.
• BookingID : A reference to the booking associated with the payment, establishing a relationship with the Booking
• Amount : The amount of the payment.
• PaymentDate : The date when the payment was made.
• PaymentMethod : The method used for payment (e.g., credit card, cash).

Relationships and Cardinalities

Relationships in the context of a database model describe how different entities or tables within a database are connected or related to each other. These relationships define how data in one entity is associated with data in another entity. Relationships are established through keys or fields in tables; they are essential for organizing and querying data efficiently.

Cardinalities refer to the numerical nature of these relationships, indicating how many instances of one entity are associated with how many instances of another entity. Cardinalities specify whether the relationship is one-to-one (1:1), one-to-many (1:N), or many-to-many (N:N). Cardinalities help define the structure and integrity of the database model.

1.    Hotel–Room

The relationship between the Hotel and Room entities exhibits a one-to-many (1:N) cardinality. This means that one hotel can have multiple rooms, but each room is associated with one specific hotel. In this model, the HotelID in the Room entity serves as a foreign key referencing the Hotel entity; this indicates which hotel a particular room belongs to. This allows hotels with various room types and configurations to efficiently manage their room inventory while ensuring that each room is tied to a specific hotel.

2.    Hotel–Staff

The Hotel and Staff entities are related in a one-to-many (1:N) cardinality, meaning a single hotel can employ multiple staff members, but each staff member is linked to only one hotel. In this model, the HotelID in the Staff entity acts as a foreign key that references the Hotel entity, specifying the hotel to which a particular staff member is affiliated. This structure facilitates the efficient management of staff in hotels with diverse departments and functions while ensuring each staff member is associated with a specific hotel.

3.    RoomType–Room

The connection between the RoomType and Room entities also demonstrates a one-to-many (1:N) cardinality. This implies that each room type can be assigned to multiple rooms, but each room is associated with only one room type. The TypeID attribute in the Room entity acts as a foreign key pointing to the RoomType entity, indicating the specific type of room that it represents. This cardinality allows hotels to offer diverse room categories while maintaining consistency in room type definitions.

4.    4. Guest–Booking:

The relationship between the Guest and Booking entities exhibits a one-to-many (1:N) cardinality as well. This signifies that a guest can make multiple bookings, but each booking is linked to one specific guest. The GuestID attribute in the Booking entity serves as a foreign key referencing the Guest entity, indicating who made the booking. This cardinality facilitates guest-specific booking records, allowing hotels to keep track of reservations made by individual guests over time.

5.    Booking–Room

The connection between the Booking and Room entities represents a one-to-many (1:N) cardinality; a single booking can include multiple rooms, but each room is associated with one booking. The RoomNumber attribute in the Booking entity acts as a foreign key referencing the Room entity, indicating the rooms reserved as part of that booking. This cardinality enables hotels to accommodate various booking scenarios, including reservations for multiple rooms within a single booking.

6.    Booking–Payment

The relationship between the Booking and Payment entities showcases a one-to-many (1:N) cardinality. This implies that one booking can be associated with multiple payment transactions, but each payment is linked to a single booking. The BookingID attribute in the Payment entity serves as a foreign key referencing the Booking entity, connecting each payment to the corresponding booking. This cardinality allows hotels to manage payment records associated with individual bookings, ensuring accurate financial tracking.

Beyond the Hotel Management Data Model

The hotel management database model plays a pivotal role in efficiently managing hotel operations, guest services, and financial transactions. Its entities and attributes collectively form a comprehensive representation of a hotel's ecosystem, allowing for precise storage and retrieval of information. By leveraging this model, hotels can streamline their booking processes, room allocation, and payment tracking while enhancing guest experiences through personalized services.

Depending on your specific requirements, you may need to extend our example hotel data model to include additional entities or attributes, such as maintenance records, housekeeping assignments, and more. You can also  implement this model in a relational database management system to build the actual database.

You may also like

Top 12 database design principles in 2023, the power of erd diagrams in database design: a step-by-step guide for beginners, er diagram for a hospital management system.

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By Cloudbeds

From increasing occupancy to generating direct bookings and increasing ADR, lodging operators have a lot on their plate. As the hospitality industry becomes more complex, the role of technology to help streamline operations and automate processes becomes increasingly important. 

Cloudbeds’ State of Independent Lodging Report surveyed thousands of independent properties and came to an important conclusion – owners and operators can’t do everything alone. This year, more properties will invest in technology to help create new revenue opportunities, build better websites , manage marketing campaigns, automate services, and improve the guest experience.  

There’s real power in having robust hotel management software that frees you up to focus on the guest rather than waste time on repetitive administrative tasks. Having the right tool can mean the difference between working on your business and working in it. Smaller properties are especially vulnerable to getting sucked into the current of daily operations, as the teams are small and almost always owner/operator driven.

To minimize frustrations and manage your property with ease and sophistication that impresses guests, consider hotel management software (HMS). In this guide, we break down the importance of a modern HMS solution, the features to look for, and how to choose the right provider.  

Why you need hotel management software

In a recent interview with Skift , Cloudbeds’ CEO, Adam Harris, commented on the state of technology adoption in the hotel industry, saying, “the average percentage of spend for technology is a fraction of what it should be. The number one reason why we don’t sign a customer up is not that they went to a competitor, but because they’re afraid of change.”

Here’s why hoteliers need to jump the hurdle of change and adopt hotel management software today.

Your time is valuable.

As a busy hotelier, every second of the day counts. 

Say your run a 15-room luxury inn nestled in the foothills. To keep it simple, we’ll only consider room revenue. The inn is high-end, with an average rate of $425 per night. At full occupancy , that’s $6,375 in potential revenue each day. At its average occupancy rate of 72%, the average revenue per night is $4,590. There are 24 hours in a day, so that’s $191.25 of revenue per hour. 

What happens when you spend 15 minutes taking a guest’s reservation over the phone rather than allowing the self-service booking many guests prefer? That 15 minutes costs you $47.82 in revenue. If you were to invest that 15 minutes (or $47.82) into marketing or technology that earned a new booking, you’d nearly quadruple your money.

Now, consider your day. What’s each hour worth for both yourself and your staff? Is everyone spending time on value-creating tasks that deliver the greatest return? How is using manual methods to operate your property affecting your overall revenue?

Your time is money, so spend it on value-driven activities – such as creating a profitable hotel distribution strategy .

You’re busy enough as it is.

No matter what type of property you run, from a large or small hotel, motel, hostel, or campground, there’s always something that needs to be done: a candidate to interview, a guest to greet, a marketing campaign to launch, or a maintenance issue to fix .

Amidst the chaos, wouldn’t it be nice to have a reliable solution to lend you a hand? This is where your hotel management software can save the day. A robust HMS provides peace of mind and helps keep things under control in the following ways:

• One platform to run your property. Managing multiple systems is a hassle – especially for smaller operations. A helpful hotel management solution will combine multiple functionalities, such as a booking engine, PMS, channel manager, digital marketing, guest engagement, and reporting.
• Accessible from anywhere. Modern HMS runs in the cloud. This means you can get real-time updates and check in on business from anywhere with internet access – even after you’ve gone home for the day. 
• Reduce guest complaints . Accidentally losing a guest reservation, forgetting to handle a special request, or mishandling credit card information are surefire ways to get complaints. An HMS will organize your guest information and provide opportunities to personalize service through guest messaging tools. 
• Manages the back office. Payments, invoices, cash drawers, and financial reports are much easier to manage when your systems are connected and pulled from the same data source.
• Experienced support. You can’t do everything alone. Your HMS vendor should act as an extension of your team, providing expertise and support to help you manage and grow your business. 

The ultimate goal is to maintain profitability and free up your time so you can work more efficiently and have less stress (and maybe even treat yourself to a vacation!). 

Sanj Gidda, Director of the George Street Hotel and Bocardo Hotel, has seen firsthand the advantages of using a modern HMS as a Cloudbeds customer. Prior to adopting the Cloudbeds Hospitality Platform, Sanj used an on-premise system with non-existent support, payments challenges, and a poorly integrated channel manager, making day-to-day operations “confusing, labor-intensive, archaic, and frustrating.”

After making the switch to Cloudbeds, Sanj recommends that other properties do the same, especially those without dedicated IT teams. With Cloudbeds, Sanj says he has access to a team of people who strive to understand and support his strategy and considers the Cloudbeds team to be an extension of his own. Another bonus? Sanj says that with a cloud platform, he was able to vacation to Mexico, where he was “literally on a beach, making decisions thanks to the real-time data in Cloudbeds.” 

Your guests expect flawless operations.

There are certain areas where quirky is cool and valued by guests: decor, location, and unique amenities. However, there are some expectations that properties of all sizes must meet. Good hotel property management software gives you the support you need to be flawless in the operational areas that matter most.

The right hotel management software helps you meet those expectations by providing:

• An online booking engine. Guests can book their reservations on your website rather than calling. An online booking or reservation system empowers guests and gives staff more time away from the phone to handle other priorities.
• Synchronized pricing and availability. One of the major problems with manual inventory management is noncompetitive pricing and availability. There will always be a gap between when the hotel reservation agent takes a phone booking and when that room is removed from inventory elsewhere. Sometimes, a channel may be overlooked, leading to double bookings – and displeased guests. Since inventory on an HMS with a channel manager is synced from a central pool, room statuses are always up-to-date. 
• Localization. To attract more guests, you need to consider international visitors and make booking easier for speakers of other languages. Offering a booking path in multiple languages gives your property a global appeal that broadens your demographics. Guest engagement platforms also provide vital translation functionality so you can communicate with guests, no matter their language.
• Guest communication. With the rise of chatbots and messaging tools across all business types, travelers expect to be able to communicate with their lodging provider before, during, and after their stay. Whether they have a question about check-in times, need something delivered to their room, or want to let you know about a staff member that made their day, today’s hotels need to provide two-way communication between their hotel and its guests.  

Your staff training and communication could be better

Training new staff is part of any business but is even more crucial in an industry with turnover as high as the hotel industry. According to the Bureau of Labor Statistics Job Openings and Labor Turnover report , the hospitality industry has the highest turnover rate of any sector at 86.3%.

When you don’t have an organized system or use complicated technology, the training process can be time-consuming and frustrating for everyone. Running your front office operations should be simple enough for any new staff member to pick up quickly so you don’t waste precious energy whenever you have a new hire.

Efficient hotel management software features include:

• An intuitive and user-friendly interface . It just makes sense – and works in the way that you would expect. For example, having a unified calendar view with drag-and-drop functionality that allows staff to easily assign rooms.
• Reports that reduce errors and manual busywork . With the proper HMS, you can eliminate the need for your staff to spend an entire shift in a spreadsheet or write reports by hand. Instead, your team can focus on analyzing the reports prepared by your HMS so they can identify trends and make action plans.   
• Housekeeping management. The front desk should be able to view the status of each room right in the HMS dashboard and assign housekeepers to prioritize cleaning. This visibility reduces communication lapses and helps staff be more efficient.

  The Cloudbeds Hospitality   Platforms has an intuitive, easy-to-use interface that cuts down training times and improves the user experience.

The hospitality industry is constantly shifting

The beauty of working with a modern, cloud-based hospitality platform is that it’s updated regularly, so the technology is always fresh and ready to support the changing needs of your property. New features and functionality lead the way to better methods of engaging with guests and operating your property profitably. Nonetheless, your hospitality management system should encourage connections to other hospitality technology with a robust menu of integrations so that you can craft the ideal tech stack.

9 important features of hotel management software

Independent hotels stand to boost productivity and gain revenue by adopting hotel management software. The power lies in the comprehensive nature of a system that works together to achieve the best business outcomes.  

Hotel management software must do one thing well: help you run your hotel better. It’s not meant to be an additional burden to manage.

Digital hotel management software eliminates silos and streamlines operations across the entire business. With full transparency and shared visibility, the whole team works from the same information. Hospitality software reduces service lapses and makes guests (not to mention your staff) happier.

When it comes down to selecting the best hotel management software for your independent hospitality business, these are key features to look for.

Watch this short video to learn about the nine main features.  

1. Cloud-based

Modern and powerful SaaS is cloud-based. This is in opposition to solutions that host hardware on-premise. Cloud computing technology is affordable, scalable, and fast. It’s also much easier to update regularly than a system that requires expensive physical upgrades. Cloud-based HMS can also be accessed from anywhere with an internet connection, so you don’t have to physically be at your property to check in on your business.

2. Intuitive interface

In an industry that competes so vigorously for talent, why spend precious time training employees on a system that takes ages to load and makes it impossible to find what you need? Employees want simple tools that are easy to use and learn. Similarly, owners and managers often need to train new staff regularly, so user-friendly hotel management software makes a business run smoother.

3. Integrated booking engine

An HMS with an integrated booking engine can help streamline reservation management, allowing guests to book reservations themselves which leads to more direct bookings . And, when it includes a payment processing tool , you can receive new bookings on your website 24/7.

An embedded booking engine gives you much more control to offer bundles and packages that reflect different guest interests. Added personalization can bring incremental revenue to hotels, no matter the property’s size.  

An efficient booking engine will:

• Include multiple languages and currencies . Choose an engine with localization support to attract and accommodate international visitors.
• Accept secure payments. Take reservations on your website around the clock and assure guests that their payment is secure with a reputable payment gateway . 
• Offer a rate comparison tool. Another powerful way to build trust and convert more bookings is with a Rate Check widget. Be transparent and give users the confidence that they’re getting the best rate on your website.
• Be customizable . Your booking engine should seamlessly match your website design to be consistent with your brand and not feel out of place. 
• Integrate with your PMS and channel manager . Reservations made on your website should automatically sync with your hotel property management system and across all your OTA channels so you don’t get overbookings. 
• Can be added to your social media profiles. Don’t miss out on the opportunity to capture additional bookings via your different social channels. Many travelers use Instagram and TikTok’s mobile apps for travel research, and by providing a link in your bio, you can convert these users.

4. Detailed reports

Robust reporting enables hoteliers to make data-driven decisions. Using data to improve operations and marketing strategies used to be a privilege for big-budget hotels only. Not anymore! With the right hotel management software, independent hotels can make smart decisions with data and create comprehensive reports that give visibility into your property’s finances, daily activities, analytics, and more. 

Detailed reports give you more clarity over your business efforts. Once you know exactly how much revenue each OTA generates for you, you can develop a channel mix that delivers the highest ROI. Dynamic reporting modules should let you create reports in-browser, as emails, or as downloadable spreadsheets and PDFs with the ability to filter by marketing channel, room type, year, specials, and other key parameters.

The Cloudbeds Hospitality Platform offers a variety of reports to analyze your daily operations and finances.

5. Channel manager

A channel manager organizes how your inventory is distributed across online travel agencies such as Booking.com , Airbnb, and Expedia. When integrated with your hotel management software, the channel manager will update your availability on your calendar in real-time. Other benefits of having a channel manager as part of your hotel management software include: 

• More visibility and guests. Connecting to different types of OTAs using your channel manager will give you the benefit of displaying your property to a larger number of potential guests from around the world. Also, you’ll be able to find smaller, more niche OTAs that will attract your ideal guest and charge lower commissions.  
• No more overbookings. When you have a channel manager that’s synced with your hotel management software, gone will be the days of manually updating your availability across multiple channels and having various logins to different extranets. Nothing beats the ease and convenience of having all of your tools in sync. 
• Greater control over your rates and availability. With a channel manager, you can set different pricing and availability on a per-channel basis, so you have full reign over how you sell your property. 

6. Revenue management

Your hotel rates shouldn’t be “set it and forget it.” To maximize revenue, your pricing needs to be dynamic and consider factors like competitors’ rates and local events that may affect your profits. It’s not feasible to constantly adjust your pricing manually. With automation, pricing can be adjusted intelligently to reflect real-time demand.  

Ideally, your hotel management software should automate at least some of your pricing decisions. Depending on the size and complexity of your property, it’s crucial to have access to everything from a pricing intelligence engine to a full-blown revenue management solution .

7. Digital marketing 

It’s not enough to just distribute your inventory via OTAs if you want to maximize revenue and be in control of your guest data. A digital marketing solution helps hotels build awareness and drive bookings across multiple channels, contributing to a more well-balanced distribution strategy.

Look for hotel management software that offers a hospitality-focused marketing solution that includes features such as:

• Beautifully designed and optimized websites. Your website is the foundation of your marketing strategy and plays an important role in establishing trust with travelers and guests. Your website should be modernly designed, easy to use, and optimized for mobile.
• Metasearch advertising . 75% of travelers use metasearch in their search process , making it a critical platform for lodging operators to be active on. Metasearch advertising can help you increase visibility on platforms like Google Hotel Ads and Trivago so that travelers book direct. 
• Business listings maintenance. Accurate business listings across your Google Business Profile, online directories, and other apps are crucial in boosting your presence in organic and paid search. 

8. Guest engagement 

The guest journey has become more complex, with lodging operators expected to engage with guests from discovery to post-stay. An increased level of engagement not only results in more satisfied guests but also helps to increase revenue via upsells and add-ons and streamlines operations through automation. 

With guest engagement tools, lodging operations can connect with guests at every touchpoint, including:

• Discovery. Utilize Livechat to answer traveler questions and move them to book at a faster rate. 
• Pre-arrival. Send pre-arrival communication via SMS, WhatsApp, or Messenger to get guests excited about their stay, offer upsells or add-ons, and answer any questions. 
• Arrival. Provide contactless check-in options and streamline the process with digital registration cards, key codes, and e-signatures to save your staff time and ensure guests can get started with their vacation as fast as possible. 
• In-stay. Use automation to have your team quickly work through guest requests and catch any service issues while guests are still on property.
• Post-stay. Manage, respond to, and track guest’ reviews in real-time and send automated messages to capture guest feedback .  

9. Robust integrations

The final feature of a well-rounded and powerful hotel management software is the ability to connect with third-party integrations. Integrations are tools and services that you can link to your HMS to get specific jobs done. For example, if you have a restaurant or cafe at your property, you could link a point of sale (POS) system to your hotel management software so your guests can easily charge purchases to their rooms.

Look for a hotel management software vendor that easily connects to your preferred third-party solutions. This integrations-friendly approach is a sign that the software provider wants to empower its customers. 

The end result of any hotel management software has to be relationship-building. It’s all about empowering hoteliers with strong and user-friendly technology in order to free up time to build more personal interactions with guests.

Evaluating HMS solutions 

When selecting a new hotel management software solution, the process should be considered with patience and care. A lot is riding on this decision: as the hub of your property, your HMS plays a pivotal role in successful operations. Here are some critical steps when evaluating software solutions.

• Prioritize functionality. Before starting to research vendors, take the time to prioritize the functionality you’re looking for. Depending on your property type, you’ll require different functionality. Vacation rentals, for example, need more automation since they usually operate without front desk staff. To start, list your top three priorities by the level of importance. Most likely, you won’t find a provider that covers 100% of your hotel management software needs, but if you begin by identifying your must-have features, you’ll be able to evaluate your options with a more critical eye. 
• Make a master list. Start researching. Drop your keyword, such as “hotel management software,” into a search engine to see what comes up in both paid ads and organic results. You can also review hospitality tech conference websites to see which companies are exhibiting at trade shows. Leverage unbiased reviews on reputable sites, like Capterra or Hotel Tech Report, to learn firsthand which tools are recommended  – and by whom.
•  Ask your network. Once you have your list of software options, you can start asking around your hospitality connections to hear first-hand experiences from colleagues and acquaintances about the vendors and tech tools on your list. You may discover patterns that can inform your decisions: a vendor with repeated positive feedback may move up the list, while one with more negative feedback may need to be crossed off. 
• Set up demos. When you’ve narrowed down your list of favorites, get a firsthand look at the software by setting up demos. Be diligent in selecting your top 3-5 options to explore further. You can always expand your search once again if the demos disappoint. 

For some, Step 4 is the most unpleasant part of the process. However, rushing through the software demo stage can lead to false assumptions and unrealistic expectations. Take your time during this phase, and really get to know the software companies under consideration. This is a long-term relationship and there’s no need to rush into something that may not be the best fit for your property.

To guide you in your selection of the right hotel management software, we’ve suggested a few questions to ask each vendor during the demo process.

How often do you roll out product updates?

Why it matters: Older systems that use locally installed hardware have the disadvantage of infrequent software updates and limited availability for customization. Newer hotel management software is often cloud-based , meaning the system will have software updates and upgrades done automatically without needing a specialized property visit from a technician. The hospitality industry is constantly changing, so software that can easily keep pace with industry demands will better support your hotel business in the long run. If the software is missing a feature you’d like to have, ask if that feature is on the product roadmap. As mentioned, no software is likely to have 100% of the features you want, but modern HMS is always evolving and improving to meet the needs of its customers.  

How customizable is your system? Do you integrate with other software tools I use?

Why it matters: Every property is different, and each business has its own needs. That’s why it’s so important for hotel management software to be flexible and customizable. Even when selecting a hotel management suite that meets most of your needs, you want to know the flexibility you have to plug in other solutions over time as your business grows and evolves.

What training and ongoing support do you provide?

Why it matters: Switching from one system to another or implementing an entirely new one altogether is daunting. You’ll have to transfer reservations, get familiar with the system, and train your staff. Look for a software provider that will diligently work with you to help you get onboarded. Some may even offer a dedicated onboarding specialist to help you with personalized training. After your initial setup, consider what support is available to help you with any questions, like a library of knowledge base articles , training videos, and access to a support team.

How do you ensure data security?

Why it matters:  Data hackers are a real threat to any business. For all of its tremendous benefits, cloud-based software can be more sensitive to security breaches. Talk to your software vendor about their security measures to keep your and your guests’ data safe. Some software may even feature different user-based permissions to keep sensitive data visible to only a few specific users. 

Do you have case studies and references?

Why it matters: References can offer first-hand perspectives of what it’s like to work with the vendor and software system. A case study of a property similar to yours could help reveal the potential benefits of working with the provider. You may also want to request additional references to get a well-rounded perspective from fellow hotels in the business.

What different tools are included?

Why it matters: As you already may know, running an independent hotel takes a lot of work. You may not have the budget to hire specialized staff positions like a revenue manager or marketing professional. Hotel management software that offers a versatile toolset to optimize hotel operations will provide you with a lot more than just a property management system, channel manager, and booking engine.

What’s your customer service philosophy?

Why it matters: If you become a customer, you’ll want to know what to expect from your software provider if you have an issue with the system. It’s a good sign when a company has taken the time to provide 24/7 support in multiple languages across different channels (ie. live chat and email). It demonstrates a commitment to the customer – and an understanding that a product is only as good as the people supporting it.

What is your average onboarding time?

Why it matters: Onboarding any new software takes time. For larger properties, the training period can be a bit longer. By asking about the average onboarding time for properties of your size, you can set a realistic benchmark for yourself.

What happens if I’m not happy in the first 30 days?

Why it matters: You need the confidence of the guarantee. If the vendor doesn’t have confidence in its own product, why should you? Be sure to evaluate your software provider’s cancellation policy because you don’t want to be stuck with a flawed system and a company that will make you jump through hoops to leave. 

Top 10 hotel management software providers

So, you have your requirements defined and your questions ready. The next step is to evaluate solutions. Here we’ve compiled 10 of the best hotel management systems on the market that you should consider in your search.

1. The Cloudbeds Hospitality Platform

Cloudbeds is the winner of the 2023 HotelTechAward for Best Hotel Management Software , along with five other accolades. The Cloudbeds Hospitality Platform enables tens of thousands of lodging businesses in more than 150 countries worldwide to grow and thrive. The platform is unified, modern, and intuitive and is enhanced by a comprehensive marketplace of third-party integrations. It streamlines operations, optimizes revenue, delights guests, and provides valuable insights for independent hoteliers.

2. Little Hotelier

Founded in 2012, Little Hotelier is an all-in-one hotel management system designed for small accommodation providers. Based in Sydney, Australia, the company helps over 9,000 properties worldwide and has been named the #2 Best Hotel Management System by 2023 HotelTechAwards. Little Hotelier is powered by Siteminder, offering a platform that is simple, easy to set up, and provides 24/7 customer support.

3. RoomRaccoon

RoomRaccoon is an all-in-one cloud-based software made for independent hotels, B&Bs, and apartments, founded in 2017 and based in the Netherlands. With over 1,500 clients around the world, it has been nominated as a finalist in Hotel Tech Report’s “Best Hotel Management System” category in the 2023 HotelTechAwards.

4. ResNexus

With over 3,200 customers worldwide, ResNexus is an all-in-one, cloud-based property management software for lodging businesses of all shapes and sizes. Launched in 2004 and based in the US, the company earned Hotel Tech Report’s level III Global Customer Support Certification (GCSC) in 2022.

5. ThinkReservations

Founded in 2012 and based in the US, ThinkReservations helps over 1,800 businesses mainly in North America. Their software includes an all-in-one property management system, online booking engine, and channel manager, with a customer satisfaction rate of 4.9/5 on Capterra.

6. WebRezPro

Trusted by over 2,000 accommodation providers in 45 countries, WebRezPro offers an all-in-one hospitality software organized into three main departments: front desk, back office, and accounting. Founded in 2003 and headquartered in Canada, the company has been named one of the top 10 Best Places to Work in Hotel Tech by the 2022 HotelTechAwards.

Headquartered in the US, RMS delivers a cloud technology trusted by more than 7,000 properties across 70 countries, also rated Top 5 PMS Systems on Hotel Tech Report. With over 35 years of experience, RMS Cloud offers a fully integrated property management solution to run a hospitality business from anywhere, at any time, and from any device. 

innRoad is an award-winning hotel management software that’s trusted by thousands of hotels around the world. Designed specifically for independent hoteliers, the company was founded in 2007, and it’s based in New York, US. Their fully integrated suite serves all property types, sizes, and experience levels.

Launched in 2011 and headquartered in the UK, eviivo provides an integrated cloud-based property management software used by 20,000 independent properties. Recently, the company earned the Best Hotel Property Management Platform 2022 by Tech Times and it allows property owners, hoteliers, and hosts to manage guests, bookings, and online travel agencies in one single platform.

10. InnQuest

Founded in 2014 in Florida, US, InnQuest is used by more than 5,500 hospitality industry properties in over 100 countries. The technology provider for the hospitality business recently earned a Certification of Excellence from Hotel Tech Report, developing a comprehensive solution with a Hotel PMS, Channel Manager, Hotel CRM, and others to maximize the guest experience.

Getting started with your hotel management system

Congratulations! You’ve selected a hotel management system. Now that the big decision has been made, it’s time to focus on implementation. Ideally, you’ve already socialized the new tool with your team, so this process is less about introducing the new solution and more about adjusting workflows.

Implementation starts with an honest appraisal of current operations: where are the existing bottlenecks? What do you hope to get out of the software? Who are the designated internal advocates? How will we assess the success of this new software tool? Let these answers shape your approach to fully leveraging the power of your hotel management software. 

We’ve spent years building and refining our hotel management software and have a deep well of past experiences to match the best implementation approach to each client. From getting started to maintaining momentum, here’s how to get the most out of your new platform. 

Set your rates

Setting rates is one of the more complex tasks that hoteliers regularly face. Careful analysis of your property’s performance and fluctuations in local market demand can help you find the right price.

Consider setting a rate plan in your hotel management system to streamline this process. That way, several OTA channels can base their pricing on your established rate plan. Then you can adjust rates on individual channels via the extranet to take advantage of any channel-specific pricing tools.  

Another option is to set a channel-specific difference. This allows you to adjust the pricing of each room type by a set amount or percentage on that channel – without having to log into the extranet. The system will simply take the base rate and then add (or subtract) accordingly. 

Every time you update your base rates, the prices will adjust according to these settings, giving you more dynamic rate control without having to do rate management on multiple channels individually. As with most distribution and revenue management aspects, revisit rates regularly to monitor for accuracy and consistency. You may also consider using a revenue management tool to help you select the best rates for your property based on local events and your competitors.  

Map your inventory

One of the biggest mistakes hotels can make when onboarding new software is inaccurate room mapping: identifying and connecting your property’s room types to your third-party distribution channels or OTAs. Accurately mapping your room names, descriptions, features, and amenities means that they are displayed the same across channels. This practice ensures that your rooms are primed for conversion and help avoid confusion when guests make comparisons across different channels – plus, it helps with SEO and streamlines your own revenue management efforts. 

The mapping process can get quite complicated, as rooms must match across your channel manager, property management system, and third-party distribution channels. But it’s important: improperly mapped inventory can lead to overbookings, lost reservations, and other miscommunications.  

The ideal approach is to practice one-to-one mapping, which maps one room type in an OTA to one room type in your HMS. We recommend focusing on room types rather than individual rooms to achieve this.

Some distribution platforms, such as Expedia, require room types. Others, such as Airbnb, allow individual rooms. If your property is a bed-and-breakfast with unique rooms, it’s still preferable to use room types – unless you plan never to use the major distribution channels. The mapping process can be a pain, so if you ever think you might distribute inventory elsewhere, use room types to future-proof your mapping.

Connect your channels

Once you’ve set up your rates and finished mapping, it’s time to connect your channels. Remember that each distribution channel requires its own account, and most hotel management software won’t sign up on your behalf. Choose your desired distribution channels, make individual accounts, and then return to your HMS to connect those channels. 

Automate your communications

Guest communication is one of the most powerful tools within your hotel management software. How you communicate with past and future guests sets the tone for the relationship and your guests’ level of satisfaction.

To properly automate guest communications, focus on these areas as a starting point:

• Confirmation email: Ensure that you automatically send a confirmation email for each booking; never do this manually! Guests expect instant confirmations and want to know that their chosen hotel is responsive, organized, and legitimate. 
• Pre-arrival email: A few days before a guest arrives, send a “we look forward to welcoming you” email. This message can include important details of their upcoming stay (thus reducing calls to the front desk), including destination information and special offers for on-property amenities. It’s a valuable touchpoint because guests are most likely to be thinking about their upcoming trip.   
• Post-stay email: In today’s digital economy, reviews are gold! An email requesting feedback and reviews encourages guests to share their experiences. There’s also an opportunity to identify potential problems before they end up online. 

Once you’ve set up these basic touchpoints, consider what you want your guest engagement strategy to look like. Based on your target demographics, does it make sense for you to send messages via SMS or messenger? How can you earn incremental revenue through upsells? An HMS with guest engagement functionality can help you become more sophisticated in your communication strategy.

Build out your direct booking strategy

A comprehensive hotel management system should include a commission-free booking engine to serve as your direct booking channel. To get the most out of your hotel management software, take the time to integrate your booking engine into your hotel website and customize it to match your site’s design.  

If applicable, take advantage of your HMS provider’s expertise and see if they can help you to build an eCommerce-optimized website to help drive more traffic and increase conversion rates. 

To further increase visibility, consider other marketing channels like metasearch advertising, retargeting ads, and optimized business listings. Always reach out to your provider to see if they have any suggestions on optimizing your digital marketing efforts – they work with hundreds of properties and have a good idea of what works best for lodging operators. 

The Vaquero Motel in Bandera, Texas, was attracted to the Cloudbeds Hospitality Platform because of the toolkit it offered, which he referred to as a “one-stop shop” with a PMS, payments processor, website, and digital marketing solution. 

Owner, Carlos Gonzalez, worked with Cloudbeds to streamline operations and grow the motel’s online presence. Using Cloudbeds’ team of digital marketing experts, The Vaquero Motel implemented an SEO-enhanced and fully integrated website with a mobile-friendly booking engine and metasearch advertising across platforms like Tripadvisor, Google Hotel Ads, and Trivago. This effort has resulted in a 5X ROI on marketing spend with increased brand awareness leading to a more robust direct booking strategy.

Train your staff

Training is the most time-intensive part of this process. It’s also one of the behaviors that define top-performing properties: those who prioritize training unlock greater value from their hotel management software. 

In addition to upfront implementation, don’t neglect ongoing training. It’s not always feasible or realistic to train staff on every last detail at the outset. Start with the essential things people need to know for their day-to-day, and then gradually introduce new features as appropriate.   

It may be beneficial to develop a process for training that can be repeated as needed. If your hotel management software is user-friendly and built for ease of use, the training process will be much easier. 

Integrate with purpose

The best hotel management software integrates with various platforms, tools, and services. As you move beyond setting up the essentials, such as inventory allocation, rates, and channels, you’ll want to focus on integrations .

Start with the integrations that fulfill a need or are most valuable to you. Maybe you need more robust accounting capabilities or want to implement keyless entry at your property. The good news is that with modern hotel management software, you can customize your system and tools to your liking. 

Maintain momentum

Finally, maintain momentum. Hotel management software isn’t a “set it and forget it” thing. It’s an ally that can become a valuable asset in building a profitable hospitality business. Consult your metrics often, and adjust areas that seem to be underperforming your expectations. A steady approach leads to consistent results – and that’s how you get the most out of your hotel management software!

Making the switch to a modern HMS solution

Adopting a modern, cloud-based HMS solution is a game-changer for independent properties. With automatic updates, new features, and everything you need in one platform, you’ll not only save everyone on your team time but increase revenue and deliver better guest experiences. 

The Cloudbeds Hospitality Platform offers lodging businesses of all sizes a powerful, intuitive, and unified solution that includes everything you need to run your property. The core platform consists of an award-winning PMS, channel manager, and booking engine with additional tools to increase revenue, delight guests and streamline day-to-day operations, including a pricing intelligence engine, digital marketing service, guest engagement functionality, a robust integration marketplace, secure payment solution, and open-API. 

The opportunities are endless with Cloudbeds, and our team is here every step of the way. From a dedicated onboarding coach to hundreds of training videos in Cloudbeds University , we’re committed to ensuring that you and your entire team are using the system to its full advantage. 

Want to see how the Cloudbeds Hospitality Platform works? Book a demo

About Cloudbeds

Cloudbeds is the leading platform redefining the concept of PMS for the hospitality industry, serving tens of thousands of properties in more than 150 countries worldwide. Built from the ground up to be masterfully unified and scalable, the award-winning Cloudbeds Platform brings together built-in and integrated solutions that modernize hotel operations, distribution, guest experience, and data & analytics.

Founded in 2012, Cloudbeds has been named a top PMS, Hotel Management System and Channel Manager (2021-2024) by Hotel Tech Report, World’s Best Hotel PMS Solutions Provider (2022) by World Travel Awards, and recognized in Deloitte’s Technology Fast 500 in 2023. 

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Hotel Management Project in Python

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This Project on Hotel Management is a general software developed (using Python) to simplify hotel operations by automating them. In this project, “AnCasa” is the project’s hotel name. It covers major aspects of hotel management; it could perform the following operations- Hotel Booking, Provide you with Hotel Rooms Info, Room Service, Billing and Record-Keeping.

Functions Created

• Home()- Function to display the project’s main screen i.e. the home page of the project or you can say the main menu for selecting the desired operation to perform. 
• Date(str)- Function to validate date entered by the user/customer. 
• Booking()- Function for booking room in hotel by entering user/customer details. 
• Room_Info()- Function to provide users/customers with hotel rooms information(i.e. about room amenities). 
• Restaurant()- Function for room service which provides user/customer with the restaurant’s menu card to order food at the room. 
• Payment()- Function for payment of hotel room and restaurant bill generation at the time of check-out. 
• Record()- Function for keeping records of customers stayed in the hotel. 

Below is the implementation.

Output:  

WELCOME TO HOTEL ANCASA 1 Booking 2 Rooms Info 3 Room Service(Menu Card) 4 Payment 5 Record 0 Exit ->1 BOOKING ROOMS Name: Joe Root  Phone No.: 5555522222  Address: 123, xyz street, city  Check-In: 12/03/2020  Check-Out: 15/03/2020  —-SELECT ROOM TYPE—-  1. Standard Non-AC  2. Standard AC  3. 3-Bed Non-AC  4. 3-Bed AC  Press 0 for Room Prices  ->3  Room Type- 3-Bed Non-AC  Price- 4500 ***ROOM BOOKED SUCCESSFULLY*** Room No. – 321  Customer Id – 45  0-BACK  ->0  WELCOME TO HOTEL ANCASA 1 Booking 2 Rooms Info 3 Room Service(Menu Card) 4 Payment 5 Record 0 Exit ->4 Phone Number: 5555522222  Payment  ——————————–  MODE OF PAYMENT  1- Credit/Debit Card  2- Paytm/PhonePe  3- Using UPI  4- Cash  -> 4 Amount: 13500 Pay For AnCasa  (y/n)  ->y ——————————–  Hotel AnCasa  ——————————–  Bill  ——————————–  Name: Joe Root  Phone No.: 5555522222  Address: 123, xyz street, city  Check-In: 12/03/2020  Check-Out: 15/03/2020  Room Type: 3-Bed Non-AC  Room Charges: 13500  Restaurant Charges: 0  ——————————– Total Amount: 13500  ——————————–  Thank You  Visit Again 🙂  ——————————– 0-BACK  ->0  WELCOME TO HOTEL ANCASA 1 Booking 2 Rooms Info 3 Room Service(Menu Card) 4 Payment 5 Record 0 Exit ->5 *** HOTEL RECORD *** | Name | Phone No. | Address | Check-In | Check-Out | Room Type | Price |  ———————————————————————————————————————-  | Joe Root | 5555522222 | 123, xyz street, city | 12/03/2020 | 15/03/2020 | 3-Bed Non-AC | 4500  ———————————————————————————————————————-  0-BACK  ->   

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• Italian ( 1 )

" DIR: West; bigger nice evening sun but louder due to main street DIR:East; Quiter, very bright in the morning if sun rises "

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Apelsin Hotel - Reviews & Photos

Yantar Hotel

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• Excellent 0
• Very Good 0
• English ( 0 )

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YANTAR HOTEL