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 resort model’s franchise operators to higher perceive what was going properly – and what wasn’t.

He grew to become interim president of the Ohio-based firm in late 2020 and took over the complete function in August 2021. Throughout that point, in fact, the trade was struggling.

Crimson Roof’s portfolio contains 682 inns throughout 4 manufacturers. Over 100 of those are operated by two Crimson Roof franchisees. The remainder is run by impartial franchisees.

One of many foremost 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 remedy the labor scarcity downside is crucial for us on the model stage,” Limbert stated.

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

All Crimson 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 Crimson Roof was restricted in what it may make investments, which is why it wanted to outsource, stated Ted Hutchins, Crimson Roof’s chief info officer.

He stated that the straightforward platform interface shall be a terrific assist for the proprietor operators with the coaching of the employees.

“As you’ll be able to think about, they’ve an enormous quantity of gross sales on this job market. One of many greatest issues is in case you have a troublesome previous interface, coaching takes too lengthy,” Hutchins stated.

The HotelKey platform will streamline a lot of Crimson 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, reminiscent of housekeeping apps, preventative upkeep and digital signatures, which Crimson Roof was unable to spend money on beforehand as a result of an absence of sources.

Franchise homeowners pay a fee to Crimson Roof for the expertise they supply. This fee was used to run the interior software program system, and now it will likely 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 stated. “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 laborious 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 previous participant?

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

The most important competitors for brand spanking new platforms is these made by huge gamers within the trade, reminiscent of Oracle, Saber, and Amadeus. Older corporations have invested so much these days in upgrading expertise and transferring to the cloud.

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

He stated a lot of the huge manufacturers have gone with the previous corporations to this point particularly for central reservation methods. Most portfolios of resort expertise startups backed by enterprise capital are from impartial inns.

“If you’re a really huge model, you need stability and also you wish to decrease danger, and also you wish to be sure that the expertise that you simply’re spending on the enterprise. In the event you go together with a legacy participant or a much bigger firm, the chance shall be lowered considerably, however on the similar time, possibly You do not have the identical sort of future or next-generation capabilities,” Colmayer stated.

“In the event you work with a smaller firm, you might have a higher impression on their roadmap and improvement and may develop into a key companion with them. Small companies are smarter, extra versatile and extra environment friendly than a few of the greater corporations.”

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 stated. “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 in regards to the subsequent few years.”


HotelKey helps practically 400,000 rooms for 3,500 inns, together with 500 stand-alone inns, principally in the US. The corporate plans to succeed in 600,000 rooms for six,000 inns by the top of 2023, in accordance with Aditya Thiagarajan, co-founder and president of HotelKey.

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

Whereas the corporate began specializing in the finances resort sector, Thyagarajan stated it’s increasing into increased high quality sectors. He stated 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 without doubt one of the world’s greatest manufacturers, with properties starting from financial system to luxurious. HotelKey is at the moment utilized in greater than 500 inns of that firm.

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

“For us, being solely seven years previous, see it as a terrific alternative to be taught from manufacturers like Crimson Roof, and that is how we craft our roadmap,” Thyagarajan stated. “After which the entire group can profit from that.”

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

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