Implementing Custom Labor Standards Across a Large Hotel Portfolio
LARGE HOTEL PORTFOLIO – VARIOUS BRANDS & LEVELS OF SERVICE
After a series of successful deep-dive workforce management projects with Carpedia Hospitality in its largest properties, a hotel ownership group became interested in exploring a way to generate similar profitability results in their properties that could not support a full-scale, deep-dive program.
The portfolio of properties spanned across multiple brands and consisted of different sizes and types, offering varied levels of service and amenities, across many markets and required different levels of staffing. A scaled approach was necessary to achieve an appropriate ROI based on the individual hotel sizes, but the differences across the properties also called for a certain degree of customization to fit each location’s brand, service model, restrictions and other nuances.
Carpedia Hospitality developed a project framework for hotels of different sizes by combining a thorough desktop analysis with a varying amount of time spent on site depending on the scale of the operation.
Carpedia Hospitality identified functional areas that were common across all properties and collected empirical data to identify best practices related to processes, behaviors and tools that incorporated best-in-class labor standards for each position. From there, time on-site was planned for each hotel in the portfolio to appropriately refine these best practices with observational data and through meetings with leadership to understand property requirements and local labor regulations.
These new customized standards were built into each operation’s scheduling strategy and required results. Daily and weekly tools calibrated to these goals were developed for forecasting, scheduling, and labor performance review, and integrated into the variety of existing systems and routines present among the array of brands in the portfolio. The remaining time on-site was dedicated to coaching individual leaders on strategies for effective labor management and continuous improvement. Carpedia Hospitality also ensured that a weekly review process was established to promote sustainability, and a consistent monthly report generated from their P&L data highlighting the performance of the designated areas was reviewed with on-site leadership and ownership to effectively track results at both the property level and of the overall initiative.
The owners were encouraged to find the projects were structured to capture 2-5% labor cost improvement. Furthermore, properties participating in the program consistently surpassed their goals, with the full project achieving 179% of planned improvement. The owners also benefited from consistent reporting and a focus and diligence around workforce management at the property level.