Capital Hotels, Apartments, and Resorts Boosts Revenue with SHR Technology
CAPITAL HOTELS, APARTMENTS & RESORTS ACHIEVED SIGNIFICANT GROWTH WITH SHR TECHNOLOGY, INCLUDING A 36% REVENUE INCREASE AND AN 18:1 ROI ON GOOGLE ADS.
How SHR Technology Transformed Capital Hotels, Apartments, and Resorts
Capital Hotels, Apartments & Resorts, South Africa’s fastest-growing provider of serviced apartments and hotel rooms, partnered with SHR, a leading hotel technology provider, to tackle significant challenges. Despite operating 12 properties across six locations, the group struggled with short lead times, market expansion, and dependence on Online Travel Agencies (OTAs). SHR’s technology and solutions helped transform these challenges into remarkable growth opportunities.
Challenges Faced by Capital Hotels, Apartments, and Resorts:
- Short Lead Time: The average lead time for bookings was just 11 days, making it hard to meet budget targets due to last-minute bookings.
- Market Expansion: Capital Hotels aimed to grow its market share in the SADC region and attract guests from the US and UK.
- OTA Dependency: The group sought to reduce reliance on OTAs by increasing direct bookings, aiming for a 50/50 revenue split between OTAs and their Booking Engine (BE).
Their Ambitious Targets
- Revenue Growth: Targeted a 15% increase in Booking Engine (BE) revenue from 2023 levels.
- Online Presence: Focused on enhancing their digital presence through a strong online strategy.
- ROI on Google Ads: Aimed for a minimum 1:10 Return on Investment (ROI) on Google Ads spend.
Impact of SHR Technology on Capital Hotels, Apartments, and Resorts:
The impact of SHR’s technology was evident in the impressive results Capital Hotels, Apartments, and Resorts achieved. Here is what they achieve by leveraging SHR’s tools:
- Direct Revenue Boost: SHR’s Booking Engine enabled Capital Hotels to introduce a member loyalty rate, offering up to 20% off the Best Available Rate (BAR). This strategy drove direct bookings and reduced OTA dependency.
- Improved ROI on Google Ads: SHR’s strategic budget allocation and optimized targeting through First Party data resulted in an 18:1 ROI on Google Ads spend, surpassing their 10:1 target.
- Overall Revenue Growth: Capital Hotels experienced a 36% Year-over-Year (YOY) increase in group revenue, demonstrating the effectiveness of SHR’s technology and digital services.
Positioned for Future Success
With SHR as a strategic partner, Capital Hotels, Apartments, and Resorts is well-positioned to continue its growth trajectory. Their collaboration with SHR has not only addressed critical challenges but has also paved the way for future expansion and success in the competitive hospitality industry.
Gillian Kombora, Head of Digital Marketing at Capital Hotels, praised SHR’s innovative solutions, stating that the partnership has exceeded expectations. SHR’s targeted strategies and technology have empowered Capital Hotels to thrive in a challenging market.
