Tech Talk

Recent posts

With Guests Checking Back In, Hoteliers Look to Take Next Step With New Tech
Posted: 03/07/2023

Business travel is picking back up and families may be taking their first or second real vacations since the pandemic cancelled so many plans just a few years ago. To ensure that guests have the best on-site experience possible, hoteliers are increasingly looking to new technologies to make their stay more comfortable than ever. With an advanced property management systems (PMS) and integration platforms, hoteliers can increase operational and staff efficiency, but also meet changing guest expectations for a high-value but relatively low-touch experience. We looked ahead to see what changes we expect to see sweeping the hospitality industry this year.

Long-term readers of this blog know that I rarely focus on a single company or product. My goal is to help readers understand new and emerging technologies, when and why they might be useful, and what to consider if you are buying them.

Read More +

The Future of Hotels
Posted: 02/21/2023

Hotels have always been a high-touch low-tech business. Today, and into the foreseeable future, hotels are moving away from the pure ‘people serving people’ model towards a more high-tech low-touch business, and doubling down on digitalization. In the paragraphs below, I envision ways in which tech can innovate and enhance the guest experience throughout the guests’ 6 stage hotel journey: Imagine-Book-Stay-Report-Recommend-Return.

Read More +

Definitely Doug 2/10/23: Planning for June
Posted: 02/10/2023

The question I have heard most often in recent months is “where are you going in the last week of June?”. As most readers are aware, two trade shows featuring hotel technology are scheduled during the same dates that week. Many of you are still undecided which to attend. Knowing that your decision will be based at least in part on where others are going (hoteliers and exhibitors both), I decided to try to get some real data that I could share.

The Shiji Distribution Solutions team provided the research on available partners, vendors, and technology, however, for obvious reasons, the chart doesn’t contain every single solution and partner available.

Read More +

comment on this article

The Nine Circles of CapEx Spreadsheet Hell, Part 1

11/28/2017 Tagged as: Capex

by Thomas Riegelman

Hotel owners spend an average of seven percent of gross revenues on CapEx, every year; a very significant reinvestment of scarce owners' capital.

Most management contracts require the hotel operator to deliver a CapEx plan to the owner sometime between August and the end of the year. The description of this “CapEx plan” is usually vague; anything will do to meet the requirement. These CapEx plans are often prepared and delivered in the form of an Excel spreadsheet.

If your properties are still using spreadsheets to manage CapEx planning and administration for a single property, or thousands of projects for a large portfolio, you have needlessly set yourself up for a trip to CapEx spreadsheet hell!

Using spreadsheets to manage CapEx will eventually lead owners and operators into each of the following Nine Circles of CapEx Spreadsheet Hell:

Inefficiency

Regenerating CapEx plans every year as a standalone process requires hours of dedicated time. Management at the property, regional and corporate level must identify, describe, scope, price and prioritize each project at each property. Hotel owners are faced with individual spreadsheets from each property and/or multiple management companies which must all be compiled into a common format for portfolio level review and analysis.

Inconsistency

Inconsistency in project titles, scopes and budget estimates make it extremely difficult to estimate CapEx costs across the portfolio, compare costs between similar properties, and aggregate purchasing and contracting across the portfolio to drive the lowest pricing from suppliers and contractors.

In a recent CapEx submission for a portfolio of 180 hotels, “PTAC” replacement projects were listed (and “speled”) in 26 different ways. Some of the PTAC projects included tax, freight, installation and disposal; some only the purchase price of the PTAC unit. Some project costs were based on national account pricing; some on last year’s purchase costs; some on local supplier estimates.

Inaccuracy

Spreadsheet numbers entered as text, formulas overwritten or corrupted, and errors in column ranges can cause errors in individual projects, as well as property and portfolio totals. Checking thousands of projects for spelling, math and spreadsheet entry errors is both mind-numbing and time consuming.

Inattention

CapEx planning often conflicts with the preparation of annual operating budgets, and is usually considered a lower priority for management time. CapEx plans are often hastily assembled at the last possible moment. This time conflict is exacerbated by the standalone nature of spreadsheet based CapEx planning.

Integration

Spreadsheets typically can’t be integrated with other systems that are used to purchase, administer, manage and maintain capital assets.

• Asset age and condition data from the maintenance management system (computerized or manual), must be transcribed into the CapEx planning spreadsheets.

• Fixed asset accounting system records are typically not available at the property level where CapEx planning is taking place.

• Reflecting CapEx approvals, funding and procurement processes in hotel accounting systems becomes a manual transcription process.

• Project management systems typically can’t be simply updated from approved CapEx plan spreadsheets.

• Updating fixed asset and maintenance records when assets are replaced does not flow smoothly from a spreadsheet based CapEx planning process.

Integrity

Capital equipment data (age, useful life, maintenance history, cost, etc.) must be transcribed from equipment records into the CapEx planning spreadsheet. It is nearly impossible to maintain this integrity as it is transcribed from each individual equipment record to each individual CapEx project. Often, properties resort to guessing or making up this data rather than finding and re-typing multiple data points for each project.

Data Entry and Reporting

CapEx planning data and reports need to be formatted differently at each stage of the process. Property level planning requires input fields that control consistency and automatically correct errors. Portfolio level review requires less individual project detail, but accuracy and consistency on project names, scope, costs and timing.

Collaboration and Coordination

Good CapEx planning requires an iterative process that fosters collaboration between management staff at the property, regional and corporate levels, subject matter experts, and ownership. It is very difficult to keep track of the status of review, requests for information, plan revisions, approval and execution when the plan is on a spreadsheet that must be edited and redistributed with each change, and at each step of the process.

Indecision

Spreadsheet based CapEx planning makes it difficult to confidently estimate CapEx expense, cash flow and project timing. This lack of confidence leads directly to indecision at the ownership level, delayed approvals and difficulties executing CapEx in a timely and efficient manner.

Check back next Watercooler for Part 2 - Finding CapEx Paradise.

About The Author

Thomas Riegelman

R-A Associates LLC

Tom combines an asset owner’s perspective of hospitality real estate with over 30 years of enterprise level management of real estate assets, development, planning, construction and facilities operations. His firm’s work is focused on creating and sustaining the long term value of hospitality real estate assets through thoughtful planning and design, efficient operations and strategic use of capital funds.