Luxury, Branded Hotel
Hoteliers turn to Carpedia Hospitality for its ability to identify operational opportunities that increase profitability and for its skilled approach in coaching management teams to implement best-in-class labor management systems. Our deep-dive approach allows us to get to know the hotels we work with and given the unique insight we gain, we frequently become a close strategic partner to many stakeholders throughout an asset’s life cycle.
An owner of an iconic hotel in New York City hired us to develop a customized labor management system in 2014. The hotel was then acquired by a new owner, and, along with the new owner came new IT systems. Carpedia Hospitality’s methods and tools were so embedded into the GM’s management style that we were re-engaged to recalibrate the new owner’s systems and protect the strong profit margins that had been achieved since our first mandate. During this second mandate, it became evident that there were further opportunities to drive cost improvement in the rooms and banqueting departments. A couple of years passed but given our deep knowledge of the property and close relationship with both the ownership and operational teams, we were called upon to support the property realize this incremental improvement.
In the first mandate, the objective was to define optimal performance levels and install detailed reporting to measure productivity performance against those levels. Given the hotel operated in a heavily unionized environment, striking a balance between decisions made by the management and those made by the union was important. The challenge in the second mandate was to adapt labor management reporting to the new IT systems. The challenge in the third mandate was to further drive productivity improvements in the rooms and banqueting departments.
The different engagements spanned a five-year period. In the first mandate, we determined that the largest opportunities were in the front office, housekeeping, stewarding, banqueting, engineering and security. Observations and analyses were conducted in order to define optimal performance within these departments. Carpedia Hospitality worked with management to develop optimized processes and tools to monitor productivity. A combination of small adjustments had a big impact on profitability. At the same time our team helped to implement changes and encourage a management style that focused on continuous improvement. After recalibrating management tools for the new IT systems in the second mandate, the third mandate provided refined tools that observed new labor guidelines in banqueting and housekeeping departments and trained the new leaders to learn and adapt to the labor management system.
Within 16 months of implementing the workforce management system in the original mandate, the hotel met the improvement goal set at the beginning of the project by 160%. This translated into an 8% improvement in line-level productivity. Furthermore, the following mandates resulted in a 5% uplift in labor productivity in both the rooms and banqueting departments.