Third-party hotel management company Interstate Hotels & Resorts is installing Hotel Effectiveness’ labor-optimization solutions to its nearly 400 hotels in the United States. After a record growth year in 2018, the addition of Interstate’s managed portfolio underscores the importance of labor management in the current economic environment.
“Interstate invests in innovative products to deliver value to our hotel owners,” Pete Sams, Interstate's EVP of operations, said in a statement. “Our Leading Edge Labor Leadership platform, powered by Hotel Effectiveness, provides new solutions that address the largest expense item at any hotel, ensuring our hotels operate at peak efficiency.”
“After a successful pilot program with 50 hotels last year, we’ve recently launched to all of our U.S. hotels,” Sams said. “With labor wages growing at a faster pace than revenues in many U.S. markets, we’re using technology to eliminate wasteful scheduling and increase labor efficiency.”
Payroll and related expenses are the largest component of any hotel’s cost structure, and most hotels do not take advantage of the efficiencies created by technology. Hotel Effectiveness automates the creation and management of business-driven labor staffing rules and the resulting scheduling plans used by every operating department in a hotel. The results reduce labor costs without sacrificing quality and guest satisfaction.