Red Roof Outsources Tech Stack to HotelKey to help fight labor shortages

Red Roof Outsources Tech Stack to HotelKey to help fight labor shortages

When George Limbert began as president red roofHe met with the lodge model’s franchise operators to raised perceive what was going nicely – and what wasn’t.

He turned interim president of the Ohio-based firm in late 2020 and took over the total function in August 2021. Throughout that point, after all, the trade was struggling.

Pink Roof’s portfolio contains 682 lodges throughout 4 manufacturers. Over 100 of those are operated by two Pink Roof franchisees. The remaining is run by unbiased franchisees.

One of many principal points was the scarcity of hospitality staff within the present labor scarcity. Franchises want to cut back their reliance on staff, and expertise is a giant a part of fixing this puzzle.

“Innovation to assist clear up the labor scarcity drawback is crucial for us on the model degree,” Limbert mentioned.

That is why Pink Roof introduced Friday evening that it is partnering with its Texas headquarters HotelKey As the corporate’s official property administration system.

All Pink Roof franchisees are required to make use of the corporate’s official expertise platform, which has traditionally been developed, hosted and supported in-house. It was clear that Pink Roof was restricted in what it might make investments, which is why it wanted to outsource, mentioned Ted Hutchins, Pink Roof’s chief data officer.

He mentioned that the straightforward platform interface will likely be an awesome assist for the proprietor operators with the coaching of the employees.

“As you may think about, they’ve an enormous quantity of gross sales on this job market. One of many largest issues is you probably have a troublesome outdated interface, coaching takes too lengthy,” Hutchins mentioned.

The HotelKey platform will streamline plenty of Pink Roof’s operations, together with property administration, visitor administration, central reservations, level of sale, connectivity to third-party reservation platforms, and the loyalty program. Landlord operators may also have entry to expertise, comparable to housekeeping apps, preventative upkeep and digital signatures, which Pink Roof was unable to put money into beforehand on account of an absence of sources.

Franchise homeowners pay a fee to Pink Roof for the expertise they supply. This fee was used to run the inner software program system, and now will probably be used to run the HotelKey system as an alternative.

“We got here from an inner system, the place we put in a single greenback and get 10 or 20 cents of innovation out of it,” Hutchins mentioned. “The group mannequin permits me to place in a single greenback and get two, three or 4 {dollars} again.”

It is unclear at this level how a lot the expertise will improve visitor gross sales.

“It’s arduous for us to anticipate that… however there are indications that communication with some is bettering [online travel agencies] And fewer complexity in reserving results in higher conversion.”

Is it higher to signal a brand new firm or an outdated participant?

HotelKey is a part of a brand new technology of lodge applied sciences, much like the merchandise supplied by Canary Applied sciences, which Just raised $30 millionand Stayntouch, the system owned by MCR.

The largest competitors for brand spanking new platforms is these made by huge gamers within the trade, comparable to Oracle, Saber, and Amadeus. Older firms have invested rather a lot these days in upgrading expertise and transferring to the cloud.

Klaus Kohlmayer, Chief Missionary and Chief Improvement Officer, mentioned: Ideasmaker of income administration software program.

He mentioned a lot of the huge manufacturers have gone with the outdated firms to this point particularly for central reservation techniques. Most portfolios of lodge expertise startups backed by enterprise capital are from unbiased lodges.

“Whenever you’re a really huge model, you need stability and also you need to reduce threat, and also you need to ensure that the expertise that you simply’re spending on the enterprise. For those who go along with a legacy participant or an even bigger firm, the chance will likely be lowered considerably, however on the similar time, perhaps You do not have the identical sort of future or next-generation capabilities,” Colmayer mentioned.

“For those who work with a smaller firm, you may have a better influence on their roadmap and growth and may change into a key accomplice with them. Small companies are smarter, extra versatile and extra environment friendly than a few of the larger firms.”

Regardless, Colmayer is assured that the funding will proceed throughout.

A survey earlier this 12 months of 210 hospitality professionals worldwide by journey tech firm Duetto discovered that 77.6 p.c are planning to take action. Increase their investment in hotel technology Within the subsequent three years.

“Innovation or funding is unquestionably accelerating. Covid has contributed to that,” Kollmayer mentioned. “We’re sort of on the cusp of a wave of innovation within the trade, which is simply starting to emerge. I’m very optimistic concerning the subsequent few years.”


HotelKey helps almost 400,000 rooms for 3,500 lodges, together with 500 stand-alone lodges, principally in the US. The corporate plans to achieve 600,000 rooms for six,000 lodges by the tip of 2023, based on Aditya Thiagarajan, co-founder and president of HotelKey.

The corporate supplies the expertise to all Motel 6 properties by way of a partnership with G6 Hospitality, in addition to all properties in Prolonged Keep America.

Whereas the corporate began specializing in the funds lodge sector, Thyagarajan mentioned it’s increasing into greater high quality sectors. He mentioned the ten,000-room Evermore Orlando Resort at Disney World is utilizing the HotelKey.

In February, HotelKey introduced a partnership with an organization it says is among the world’s largest manufacturers, with properties starting from financial system to luxurious. HotelKey is at the moment utilized in greater than 500 lodges of that firm.

As a smaller firm, Thyagarajan mentioned HotelKey has taken the trail of growth in collaboration with companions.

“For us, being solely seven years outdated, see it as an awesome alternative to be taught from manufacturers like Pink Roof, and that is how we craft our roadmap,” Thyagarajan mentioned. “After which the entire group can profit from that.”

HotelKey has greater than 300 staff, with More than 100 slots.

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