75 properties , was to use its tech in hotels it managed as case studies of success . Is it a tech company or a hotel operator is the wrong question : “ Our customers are hotel owners and hotel owners care about profitability ,” Zeidan said .
The lobby area of Lower Highlands in Denver , operated by Life House .
YIN AND YANG The ability to run higher margins is a function of two things : generating robust revenue and converting it to profit . It ’ s not an easy feat : in between stand those pesky expenses . The highest cost for a hotel is labor and the subject of it can make for heated debate : on the one hand , human employees deliver a type of service that machinery and equipment can ’ t ; on the other , there are some functions that don ’ t necessarily need a human touch and can be accomplished with technology , such as checking in , opening a guestroom door via a smartphone and guest communications . In fact , Kasa employs customized AI GBT functionality to address guest questions , from where do I park my car to how does the thermostat work ? Pedan said that around two thirds of questions from guests are answered through this functionality .
It ’ s no secret , then , that one of the ways to produce a higher GOP is to remove some labor and replace it with technology . Kasa , for instance , uses what it calls a virtual front desk , which is any mobile device or computer . Guests check in
and gain entry to properties via access codes that unlock electronic locks . Put simply , at a Kasa property , you won ’ t find a front desk . “ It feels different , like a digitally native form of hospitality , more akin to how you are used to ordering an Uber or Lyft ,” said Pedan .
It ’ s a cost-saving template all around , where once balkanized departments , such as accounting , revenue management and on-site functional duties are stripped out and clustered into one central Kasa system . At any given moment , Pedan can look up the RevPAR index for any Kasa property . “ It ’ s centralized and that lowers the overall cost burden across the portfolio ,” he said .
Owners concerned about ballooning expenses are turning to alternative managers to help rein them in . Scott Robbins is the owner of the boutique Kasa El Paseo Miami Beach , which joined up with Kasa in July
TECHNOLOGY CREATES A SMOOTH , EASY GUEST EXPERIENCE WHILE SOLVING FOR MANY OF THE OPERATIONAL CHALLENGES THAT OWNERS FACE
– CHRISTIAN LEE , CEO , MINT HOUSE
2022 . For it , like many of its peer properties , expenses eating into the bottom line became a growing concern , one reason why Robbins decided to move off its manager and join the Kasa ranks .
“ Managing costs effectively was becoming increasingly challenging . In our search for a solution , we sought an operator capable of not only curtailing these escalating expenses but also enhancing our guests ’ experiences ,” Robbins said ,
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