At the end of the day, the overarching goal for every hotel that is part of an ownership group is to maximize its return on investment (ROI) for its owners. This is the primary KPI to which the hotel general manager is beholden. Guest satisfaction, online reputation, and targeted marketing are ways to increase ROI, but unless all of these initiatives are working together to achieve this ultimate goal, the hotel will fail to reach its maximum profitability.
But, while a general manager is given the task of leading a hotel to success, the onus is on owners or ownership groups to use all the data at their disposal to make the right investment decisions at the right time to maximize profitability. For example, a general manager might recommend a renovation to increase guest satisfaction and online reputation, leading to improved ROI. But ultimately it’s the owners who decide when it’s appropriate to renovate and how much money to spend on the updates.
So, how do owners make this decision? Many individuals and groups have found guest feedback and data points like the TripAdvisor Popularity Index to be a valuable indicator of when it is time to invest in improvements for a particular property. Trends in review data can pinpoint specific areas for improvement that will maximize ROI. For example, if guests at a particular property are consistently complaining about the beds, the general manager may recommend that an owner invest in new mattresses to improve the profitability of the hotel.
We sat down with a Revinate customer to learn more about how real ownership groups are successfully leveraging guest feedback data.
This Hotel Ownership Group Leverages Guest Feedback Data to Maximize its ROI
LaSalle Hotel Properties is a leading multi-operator real estate investment trust. The Company owns 47 hotels, with approximately 2/3 of the portfolio being independent. The properties are upscale, full-service hotels, spread out across major urban markets in 10 US states and the District of Columbia.
Revinate Reputation for Corporate Groups offers a central, aggregated Corporate Reporting dashboard that helps ownership groups monitor and report on the overall performance of a full hotel portfolio.
Max Leinweber, Director of Finance at LaSalle Hotel Properties (“LaSalle”), has found that Revinate helps the LaSalle asset management team efficiently monitor the portfolio’s online reviews and track progress towards goals. Here’s what he had to say about the Corporate Reporting dashboard two months after signing up for Revinate service.
“The Corporate Reporting dashboard is easy for all members of our company to use. All data is updated in real time, which allows for seamless reporting across all time periods. Without this feature, it would take us much longer to gather and analyze this type of data on our own.”
“With hotels spread across 14 markets of different sizes, Revinate is able to benchmark all 47 of our hotels consistently using the TripAdvisor Popularity Index, which ranks a given hotel’s position relative to the size of the market. This index has been helpful for us in terms of setting portfolio-wide goals that apply to markets as small as Del Mar, CA or as large as New York City.”
Investing for profitability
“Before we decide to renovate or reposition any of our assets, we always prepare a quantitative analysis with financial projections under several scenarios. With Revinate, we are now able to add a more detailed qualitative analysis as part of our underwriting process, including specific data points on guest feedback. The information in Revinate Reputation’s sentiment analysis helps identify the areas with the highest potential return on investment.”