REVENUE MANAGEMENT SOLUTIONS FOR HOTELS
 
Noble  
is an integrated real estate investment management, operating and development organization focused on the North American lodging and hospitality sector. Through its private equity funds, Noble is a value-added, active investor in luxury and upscale hotels and resorts. By strategically utilizing the organizations in-house property management and project development core competencies, Noble has achieved premium risk-adjusted investment returns since 1993.

 

Noble and its predecessors have acquired and developed over $1.5 billion in assets and in 2006, the company made an aggregate of $500 million in lodging investments. Noble's current discretionary private equity fund represents $310 million of equity commitments and expects to invest over $1 billion in assets during the next three years.

Noble's development division leads the planning, programming, construction management and realization of complex lodging development, re-development and conversion strategies. Currently, Noble is actively developing more than $1 billion of urban, resort and mixed-use hospitality projects throughout North America.

Noble's management division is an award-winning operator of independent destination resorts and branded upscale hotels affiliated with Marriott, Starwood, Hilton, Hyatt and IHG. Currently, Noble operates more than 7,000 hotel and resort guest rooms, convention and conference centers with over 800,000 sq. ft. of meeting space, as well as championship golf, day and resort spa's, upscale restaurants, and branded retail coffee stores.

Noble  needed to strengthen their revenue management processes, improve forecast accuracy and weekday premium mix as well as subsequent average rate and RevPAR. When it needed a comprehensive solution, Noble Investment Group chose the Intercrew Systems Revenue Forecasting Tool and Sell Strategy Module to maximize its current operations including more than 5,000 first-class hospitality resort and upscale hotel guest rooms plus 7,000 Alliance Hospitality Management operated hotel rooms.

Using the Intercrew Systems' Revenue Forecasting Tool, Sell Strategy Module and experienced hotel revenue management professional services, the company immediately identified several unprofitable corporate and airline crew accounts. These negotiated accounts had a combined rate and service pattern which displaced revenue from a higher rated market. With clear visibility offered by the Revenue Forecasting Tool, the company removed these accounts from their books, previously deemed irreplaceable due to sheer volume. This alone dramatically improved RevPAR.

Next, Noble Investment Group identified market segment budget strategies that were impossible to achieve in light of their current market conditions. Our professional services, the Revenue Forecasting Tool and its comprehensive reports made this information apparent. They used this new insight to restructure their sell strategy and sales team deployment into a more achievable room revenue strategy by market segment. To do so, some budgets were sustained at existing levels using restructured strategies and detailed outlines, while other budgets were increased based on additional demand potential in their specific market segment.

 
 
The Intercrew Systems' Revenue Forecasting Tool, Sell Strategy Module and professional services made retail pricing issues much more easily identifiable. As a result, the company adjusted their retail pricing, where applicable, to ensure an improved premium mix, average rate and subsequent RevPAR. This was all accomplished without the need for additional demand.

"The tools have greatly assisted my goal in establishing single image pricing, or rationalized pricing, throughout the portfolio," states Mitesh Shah, President and CEO. "This will improve some of the hotels much needed rate integrity, and subsequent customer loyalty."


Noble Investment Group was impressed with the functionality and insight attainable using the Intercrew Systems software solution. Their awareness improved from top to bottom as they began implementing consistent weekly strategy meetings using the Revenue Forecasting Tool and Sell Strategy Module. Daily segmented forecasting immediately enhanced corporate, regional and hotel-level management awareness of their competitive landscape. Corporate accounting and hotel controllers benefited from accurate room sale coding. The company's revenue managers and sales directors now address issues of which they were previously unaware.

"The new Intercrew Systems tools exposed everything relating to the rooms,"
Mr. Shah states.


Intercrew Systems software and professional services influenced the development of a new and improved corporate environment where revenue managers could excel in their position regardless of the hotel brand they support. This new system provided a uniform and all-inclusive foundation to enable similar tasks for multiple brands and streamlined management over multiple properties. As a result, Noble Investment Group attracted higher caliber managers, opening redeployment opportunities and reducing payroll expense.

Intercrew Systems made a substantial and measurable impact on business processes and strategies within Noble Investment Group. These changes improved performance, revenue, efficiency and ongoing business strategy.



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