The ProHost® System typically generates a 24 to 36 month payback depending on the luxury level of the property, size, physical layout and labor rules drive the ROI analysis.
This translates to significant savings over the life of the System (typically ten to fifteen years). Investment analysis shows that ProHost® consistently exceeds the 15% hurdle rate for IRR and NPV calculations.
In one case study, the annual savings were extrapolated over the seventeen years of operating the ProHost® System (while utilizing the same processes established in year one). Since implementation the ProHost® System has generated over $4,500,000 in savings, the property has reinvested $32,870 in equipment refurbishment over the years, less than 1% of its accumulated savings, to maintain the integrity of the program.
The financial benefit of the ProHost® System can be viewed even more clearly when a leasing model is evaluated. With a lease, the ProHost® System investment can be shifted to the operating line of the budget. The net effect is a reduction in the total operating expense for the housekeeping department. The monthly lease payment is less than the monthly savings generated, thus decreasing the housekeeping cost per room expense and improving the net income of the hotel’s operation.