The ProHost® System represents a significant departure from current industry practices in the organization of “Heart-of-the-House” services.
Combining process and equipment, the ProHost® System ensures seamless, just-in-time delivery of linens, amenities and supplies to the guest floors and function rooms. ProHost® complements the appearance, operational goals and quality service objectives of hotel management while adapting to the physical layout of the individual properties. Hostar International, Inc. uses its expertise in housekeeping and Food and Beverage operations to design and implement solutions customized to the needs of each hotel.
The ProHost® System generates significant savings in costs per occupied room night. Productivity improvements with the System reduce on-going labor costs. Lower linen and supply expense result from centralized inventories and just-in-time distribution controls. Improving service levels while reducing operating costs is the driving force behind ProHost® System implementation in more than 60,000 premier hotel rooms worldwide.
At Hostar International, Inc. we recognize that a commitment to the ProHost® System is a significant financial investment. Key decision-makers require solid return-on-investment information in order to proceed. To that end, Hostar International, Inc. continues to conduct, in partnership with its customers, baseline studies that document the financial returns.
Here are examples of case studies conducted with a number of prestigious hotel chains, with detailed accountability that compares before and after performance.
The source of the productivity improvement and expense savings lie in the operational improvements offered by the ProHost® System to today’s managers. The following case studies allow interested parties to look at the details and judge for themselves.
The New York-New York Hotel & Casino and Caesars Palace, Las Vegas provided the following return-on-investment information. Hostar conducted the comparative analyses in partnership with their housekeeping and financial managers in 1998 and approved for release to the industry by hotel management. The information presented here is in the form of data ranges and/or averages.
| CHAIN: |
NEW YORK-NEW YORK |
CAESARS PALACE, LAS VEGAS |
| Size: |
2,034 Rooms |
2,665 Rooms |
| Type: |
Casino / Resort |
Casino / Resort |
| Year: |
ProHost Installed – 1996 |
1995 / 1997 |
| 1. |
Labor & Benefit Savings
Both properties achieved sustainable increases in room attendant productivity. The average for the two properties was a 1.01 increase in room attendant credits per housekeeper per shift. The result was an average annual 7.3% improvement in room attendant productivity versus the prior year’s productivity. The savings in labor costs ranged from 5.5% to 7.5% per occupied room night. |
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| 2. |
Expense Savings
One property achieved savings of $0.20 in guest supply expense per occupied room night. (A comparative analysis for the second property was not possible due to changes in the baseline product mix.) |
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| 3. |
Reduction in Worker’s Compensation
ProHost® Systems in both properties are credited with greatly improving working conditions for housekeeping staff. Early evidence suggests the Power-Assist Mobiles are sharply reducing the number and dollar value of workers compensation claims. |
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| 4. |
Total Savings
Both properties met or exceeded their return-on-investment objectives. |
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Percentage Improvement |
Savings Per Occupied Room Night |
| Salary and Benefits |
5.5 – 7.5% |
na |
| Guest Supply Expenses |
na |
$0.20 |
| CHAIN: |
SHERATON |
| Size: |
1,100 Rooms |
| Type: |
Business / Convention |
| Year: |
ProHost System Installed – 1993 |
| Data: |
Annual Financial Statements 1993 - 1994 |
| 1. |
Labor & Benefit Savings
Housekeeping generated a wage and benefit savings of $0.24 per occupied room night or a 3% improvement over Year 1 wage and benefit costs. Housekeeping completions and productivity improved even though there was no change in the room cleaning assignment. |
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| 2. |
Expense Savings
Housekeeping achieved an improvement of 10% per occupied room night when compared to the base year. The department generated expense savings of $0.49 per occupied room night since Year 1. |
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| 3. |
Total Savings
Annual savings projected at $234,000 at $0.73 per occupied room night. |
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Percentage Improvement |
Savings Per Occupied Room Night |
| Salary and Benefits |
3% |
$0.24 |
| Linen, Supplies, Laundry |
10% |
$0.49 |
| Total Savings |
|
$0.73 |
| CHAIN: |
SHERATON |
| Size: |
850 Rooms |
| Type: |
Business / Convention |
| Year: |
ProHost System Installed – 1991 |
| Data: |
Annual Financial Statements 1991 - 1994 |
| 1. |
Labor & Benefit Savings
Housekeeping generated a wage and benefit savings of $108,712 ($0.48 per occupied room night) since Year 1. |
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| 2. |
Expense Savings
Housekeeping achieved an average improvement of 6.5% per occupied room night when compared to the base year. The department generated expense savings of $74,739 ($0.33 per occupied room night) since Year 1. |
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| 3. |
Total Savings
Five-year savings projected at $917,254 or 106% of the projected ROI. |
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Percentage Improvement |
Savings Per Occupied Room Night |
| Salary and Benefits |
5% |
$0.48 |
| Linen Expenses |
7% |
$0.03 |
| Guest Supply Expenses |
8% |
$0.18 |
| Laundry Allocation |
6% |
$0.12 |
| Total Savings |
|
$0.81 |
Average savings over three year period with the ProHost System.
| CHAIN: |
WESTIN |
| Size: |
865 Rooms |
| Type: |
Business / Convention |
| Year: |
ProHost System Installed – 1990 |
| Data: |
Annual Financial Statements 1990 - 1992 |
| 1. |
Labor & Benefit Savings
Housekeeping generated annual wage and benefit savings of $128,552 ($0.55 per occupied room night). In negotiations with the union on the introduction of the ProHost® System, a room attendant self-inspection system was introduced and travel credits in the high-rise towers were eliminated. Lower labor costs were achieved, with no change in room cleaning assignment, through higher room attendant completions and reduced house attendant and supervisor labor. |
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| 2. |
Expense Savings
The department achieved annual expense savings of $91,155 ($0.39 per occupied room night). Housekeeping reduced guest supply expenses by 19% and laundry allocation costs by 8%. |
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| 3. |
Total Savings
Five-year savings projected at $1,098,535. |
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Percentage Improvement |
Savings Per Occupied Room Night |
| Salary and Benefits |
6.3% |
$0.55 |
| Linen Expenses* |
(19%) |
($0.10) |
| Guest Supply Expenses |
19% |
$0.37 |
| Laundry Allocation |
8% |
$0.12 |
| Total Savings |
|
$0.94 |
*Upgrades in linen program occurred during baseline study.
| CHAIN: |
WESTIN |
| Size: |
630 Rooms |
| Type: |
Business / Convention |
| Year: |
ProHost System Installed – 1990 |
| Data: |
Annual Financial Statements 1990 - 1992 |
| 1. |
Labor & Benefit Savings
Housekeeping generated annual wage and benefit savings of $126,932 ($0.80 per occupied room night) since Year 1. |
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| 2. |
Expense Savings
The department achieved annual expense savings of $107,893 ($0.68 per occupied room night) since Year 1. |
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| 3. |
Total Savings
Five-year savings projected at $1,174,125. |
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Percentage Improvement |
Savings Per Occupied Room Night |
| Salary and Benefits |
5% |
$0.80 |
| Linen Expenses |
30% |
$0.28 |
| Guest Supply Expenses |
19% |
$0.38 |
| Laundry Allocation |
1% |
$0.02 |
| Total Savings |
|
$1.48 |
| CHAIN: |
WESTIN |
| Size: |
570 Rooms |
| Type: |
Business / Convention |
| Year: |
ProHost System Installed – 1989 |
| Data: |
Annual Financial Statements 1990 - 1992 |
| 1. |
Labor & Benefit Savings
Housekeeping generated annual wage and benefit savings of $70,959 ($0.51 per occupied room night) since Year 1. |
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| 2. |
Expense Savings
The department achieved annual expense savings of $72,350 ($0.52 per occupied room night) since Year 1. |
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| 3. |
Total Savings
Five-year savings projected at $716,545. |
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Percentage Improvement |
Savings Per Occupied Room Night |
| Salary and Benefits |
8% |
$0.51 |
| Linen, Supplies, Laundry |
11% |
$0.52 |
| Total Savings |
|
$1.03 |
| CHAIN: |
RENAISSANCE |
| Size: |
500 Rooms |
| Type: |
Business / Convention |
| Year: |
ProHost System Installed – 1994 |
| Data: |
Annual Financial Statements 1993 - 1994 |
| 1. |
Labor & Benefit Savings
Housekeeping productivity increased by 0.83 credits per shift generating a savings of $0.25 per occupied room night. |
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| 2. |
Expense Savings
Housekeeping achieved an average improvement in expense savings of 8% per occupied room night. The department generated expense savings of $0.31 per occupied room night over the base year. |
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| 3. |
Total Savings
Projected annual savings of $73,699 and 39 month payback period. |
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Percentage Improvement |
Savings Per Occupied Room Night |
| Salary and Benefits |
6% |
$0.25 |
| Linen Expenses* |
na |
na |
| Guest Supply Expenses |
7.4% |
$0.17 |
| Laundry Allocation |
8.8% |
$0.14 |
| Total Savings |
|
$0.56 |
* No baseline for linen expenses - upgraded linen program begun in year 2
| CHAIN: |
MARRIOTT |
| Size: |
600 Rooms |
| Type: |
Airport / Convention |
| Year: |
ProHost System Installed – 1995 |
| Data: |
Annual Financial Statements 1994 - 1995 |
| 1. |
Labor & Benefit Savings
Housekeeping generated a wage and benefit savings of $0.57 per occupied room night equal to an 8.5% improvement over the base year. |
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| 2. |
Expense Savings
The department generated expense savings of $0.13 per occupied room night compared to the base year. The improvement in linen expense savings was 13.8% and savings of guest supplies increased by 10%. |
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| 3. |
Total Savings
Reoccurring annual savings projected at $124,370 with a 32-month payback. |
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Percentage Improvement |
Savings Per Occupied Room Night |
| Salary and Benefits |
8.5% |
$0.57 |
| Linen Expenses |
13.8% |
$0.08 |
| Guest Supply Expenses |
10% |
$0.05 |
| Total Savings |
|
$0.70 |
