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New Site Selection: A Hotel Case Study

The Company

A global hotelier franchising thousands of hotels across several brands

The Challenge

The hotelier had grown rapidly over the previous few years and was concerned about the increased incidence of opening new hotels in suboptimal locations. Management believed that site quality could be significantly improved without sacrificing continued growth, but lacked a data-driven selection process.

The Solution

APT software’s "Winner’s Profile" functionality automatically evaluated thousands of hotel characteristics and identified the key factors associated with above-average hotel performance. Given the volume of data available for analysis, it was critical that the company be able to assess which characteristics were correlated with site performance and, more importantly, which would be reliable predictors of future site performance. Management used APT to formulate the development strategy and identify target markets across the company’s brands. The development team worked with APT to rank the top MSAs and to identify specific target locations within selected MSAs.

The Results

The multi-functional applications of APT’s Network Planner generated opportunities worth tens of millions of dollars per year to the company, and even more to franchisees.
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