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Relaunching Hotel Brands: A Hotel Case Study

The Company

A global hotel company franchising several brands across thousands of hotels.

The Challenge

One of the hotel company’s popular but aging brands was underperforming. Management wanted to realign the brand’s hospitality with what its target guests expected, and to make this experience consistent across all locations. They began a brand relaunch that included renovation of lobbies and other visible features, as well as employee retraining. However, decision makers were unable to quantify the impact of these investments, and disagreed upon how to move forward.

The Solution

Management used APT’s Test & Learn™ software to measure the true incremental impact of the relaunch on RevPAR and ROI, and saw clear profits. Test & Learn™ also determined the specific lift in guest satisfaction that each component of the relaunch (e.g. employee retraining) created. Hotel management reevaluated the specific components of the relaunch, especially the elements requiring the greatest capital investment, to improve its impact among its target segments and to optimize RevPAR, NOI, and ROI for the company and its franchisees.

The Results

The clear profit that APT’s predictive analytics demonstrated spurred an increase in franchisee participation in the brand relaunch, and the data on each component’s impact helped the company optimize their capital investment. The hotel company’s unwavering expansion and acceleration of the brand relaunch produced tens of millions of dollars in net present value for franchisees.
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