Independent, Luxury Resort & Casino
Workforce management initiatives are often used by private equity firms to generate performance improvement within their hotel portfolios and Carpedia Hospitality is a trusted partner in creating this value. Our client was holding an independent trophy asset on the Las Vegas Strip that was already producing high returns, however, with the recent minimum wage and benefit load hikes, we were asked to work alongside the resort’s management team to generate performance improvement and drive productivity so the operation could easily absorb any extra costs incurred.
THE CHALLENGE:
Our challenge was to define efficiencies and processes in order to augment labor standards all within the parameters of a semi-unionized environment. The hotel consisted of a high room count, extensive F&B facilities, casino, spa, full leisure facilities, retail and branded fast casual restaurants. Given the size of the property, the improvement identified by our consultants in our initial analysis was substantial.
THE SOLUTIONS:
Beyond the analysis, we developed labor standards and an improvement plan that acted as a road map of required enhancements to achieve goals that were set at the beginning of the project. Following this, we implemented initiatives that allowed for the executive and labor management teams to achieve, measure and sustain the enhanced levels of productivity.
THE RESULTS:
Post completion of the project, there was a short ramp-up phase that allowed for our changes to be embedded in the business. Each month thereafter, it was evident that operational performance was improving, and subsequently led to the resort achieving 110% of plan in addition to exceeding the project’s estimated return-on-investment. Overall, the result of the project was a 10% uplift in labor productivity for the in-scope departments with no resulting impact to guest and employee satisfaction. The work also led to additional projects at the resort that focused on the F&B department and the management of the supply chain.
“The project led by Carpedia Hospitality has been a catalyst for many positive changes throughout the property. In addition to introducing best-in-class labor controls, my management team challenged a number of our operational processes and further embedded our mantra of being the industry leaders when it comes to continuous improvement.” – SVP of Hotel Operations
“The results yielded by the project were sizable; both in operating profit and in terms of assisting to maintain a best-in-class valuation of the asset amidst an ever evolving and competitive landscape. The team at Carpedia Hospitality has a unique and considered approach that makes them an excellent strategic partner.” – CFO