15 July 2020
Magnuson Hotels, the fast-growing franchise alternative, and STR, the global leader in hotel performance benchmarking, today announced the successful integration of an automated global data exchange that allows hoteliers to receive daily local-market benchmarking.
The data exchange is the first integration of its kind. On a nightly basis, each Magnuson Hotel affiliate’s performance data is uploaded to STR, while STR sends back to Magnuson benchmarking for each hotel across all local and global markets.
This allows Magnuson to guide each hotel on the most effective pricing strategy, as well as to determine the most profitable untapped local business segments.
“We are pleased to partner with Magnuson Hotels on advancing our benchmarking partnership to a daily frequency,” said Robin Rossmann, STR’s managing director. “Whilst the framework for this integration was developed in the pre-pandemic world, the fruition could not be timelier given the increased urgency for the performance insights that will help hoteliers capitalise on return demand. As we continue to develop our offerings with historical and forward-looking solutions, this integration can serve as a template for additional companies around the globe.”
“Hotels will no longer have to hope they can do a few percent better than last year,” says Magnuson CEO Thomas Magnuson. “With the complete STR data integration, Magnuson can help each hotel determine its maximum possible market performance, and thus build precise pricing and distribution plans to achieve specific revenue targets. The data exchange will also help hotel owners reduce the rising customer acquisition costs of OTAs by expanding each hotel’s sources of direct local business.”
Magnuson states that its four fundamentals necessary for effective hotel revenue planning are data building, benchmarking, forecasting and then automation. Without complete local market data on performance, pricing, volume and business segments, hotels cannot enact profitable business strategies.
For example, a hotel that has been branded as an economy hotel may have recently renovated, and thus achieved higher online customer reviews. However, because the hotel has not properly benchmarked its Star rating, online reviews and amenities against the competition, it is selling too low. As hotels run low rates to drive high occupancy, the increased operating costs end up outweighing any revenue increase and eroding any profits.
The STR/Magnuson data exchange allows hoteliers to transition from a lower margin occupancy strategy to a 365-day RevPAR strategy, as measured by the optimum revenue per available room night.
CEO Thomas Magnuson states, “Since the STR integration last January, the benchmarking data has helped guide Magnuson Hotels to a chainwide REVPAR (revenue per available room) surpassing the USA average by 2 to 1.”
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.
About Magnuson Hotels
Magnuson Hotels, headquartered in London UK and Spokane WA stands as a top 20 global chain with over 65,000 hotels and 700 airlines on its worldwide booking platform www.magnusonhotels.com. Founded in 2003, Magnuson Hotels gives independently minded hotel owners a way to achieve global brand support at a fraction of the cost of traditional franchise chains. In 2019, the company outperformed the USA STR RevPAR (0.9 percent) by 20X. Magnuson Hotels’ Q1 2020 performance report can be found here.