|
and according to HotStats , on a rolling 12-month-basis , select-service profit margins average 40 %.) This , it notes , can be achieved with one to 10 fulltime employees per property and direct bookings accounting for around 40 % of business .
BETTER WITH LESS The film “ Moneyball ” chronicles the general manager of major league baseball ’ s Oakland Athletics and his wonky , yet seminal approach to
|
arranging a winning ball club with the third-lowest payroll in the league . Using an approach called sabermetrics , he is able to isolate under-appreciated or under-looked ballplayers , who are typically good at one important thing : getting on base , which leads to scoring runs , which leads to winning games .
Kasa , and its ilk , promote a similar approach . In their case , revenue management pinch hits for on-base percentage .
|
In its deck to prospective partners , Kasa refers to itself as “ revenue-management scientists ,” equipped with an “ automated , parameter-based pricing system ,” which improves RevPAR index without higher marketing spend . This strategy , along with centralizing backoffice functions and reducing the fixed-labor cost , it says , results in higher profitability — an end-product owners covet .
One of Kasa ’ s peers is Life House , which , like Kasa , takes
|
a tech-centric approach to operations . The company , which has raised more than $ 100 million to date , according to Crunchbase , was launched in 2014 by its founder , Rami Zeidan , who departed the company in March 2024 after what was reported as internal disgruntlement by some Life House owners . Prior to his resignation , HOTELS spoke with Zeidan , who launched the company on the principle that small- and medium-sized |
||
A bedroom at Kasa Lantern Lower East Side . Kasa properties have virtual front desks that are accessed via a mobile device . |
|||||
A bathroom at The Maverick by Kasa in Pittsburgh . The hotel converted to a Kasamanaged property in 2021 after the owner dropped Ace Hotels as the operator . |
|||||
May / June 2024 hotelsmag . com 39 |