HotelREZ is today one of the world’s largest tailored companies dedicated to driving revenue, marketing and connecting independent hoteliers with hotel users around the world. As a SaaS-enabled service company, HotelREZ provides distribution, web services, booking engines, revenue and sales consultancy and marketing services and support to more than 2,800 independent hotels, apartments, and hotel groups in over 100 countries, including private label Global Distribution System (GDS) chain code solutions.
The company’s portfolio consists of a mix of independent and unique hotels and groups, from sleek boutique city gems to country-house retreats full of charm and history. Customers include StayCity ApartHotels, Dorint Hotels & Resorts, Queensway/Point A Group, Champneys, Exclusive Collection, Hastings, The Zetter Group, View Hotels Australia, Versace Dubai, and Resident Hotels.
HotelREZ also incorporates two hotel consortia: Best Loved Hotels, a collection of unique global individual properties, with a dedicated GDS programme and website, aimed at high-end leisure travellers and agents; and World Rainbow Hotels, the world’s only GDS Enabled LGBTQ+ global hotel consortium, representing more than 1,200 hotels in over 230 destinations. HotelREZ also powers The Elegant Hotel Collection – a full-service luxury soft brand providing a full stack technology core with international sales and marketing solutions to a curated global network of unique and inspiring luxury hotels.
From zero to hero
With the company now approaching its 20th anniversary, its founder and CEO Mark Lewis can be rightly proud of what has been achieved, growing from nothing to the 16th largest hotel company worldwide in just two decades. An experienced hospitality industry professional and entrepreneur, his story is a fine example of how an idea can be turned into a highly successful business. “I started HotelREZ on my laptop, having written a business plan on a beach in Thailand after leaving corporate life. It was a daunting period, competing with huge NASDAQ organisations,” he recalls.
Still, his idea seemed to work, and the first customers who trusted him and his vision of a product that would allow them to thrive in an increasingly competitive market, have remained with the company to this day. “We will always be particularly close to those founder members who had the vision to take a chance on us at the outset,” he says.
He reflects that it was an honest approach that helped the company grow, coupled with best-in-class technology and a personal touch. “We are what’s known in investment circles as a bootstrapped business, privately-owned and funded, so not subject to NASDAQ cycles. The important thing is that we have been quality-driven from the very beginning – we believe we are the best at what we do, and I think the evidence supports that narrative. Our aim is to drive incremental revenue for our customers, we are very entrepreneurial and fast-paced. Needless to say, services are at the heart of the company, and we always try to go beyond clients’ expectations.”
The human factor has been the basis of the company’s sustained development, both internal and external. “We have very loyal staff, and we retain personal relationships with our members, but at scale. We want them to do well, and we have the best team delivering on that promise. However, what also differentiates us is our technology. The technology we use is best-in-class and, notably, the way it is used is critical to our clients’ success.”
Sustainable drive
He reflects that although the last 20 years have not been without challenges, building a business that is resilient, a team that is incredibly loyal and a solid, and a growing customer base all represent a great outcome.
Tangible achievements also include launching the world’s only GDS-enabled LGBTQ+ consortium, World Rainbow Hotels, as well as acquiring an established British brand – ‘Best Loved Hotels.’ Mark affirms that the company is looking for other acquisition opportunities that will add value to its hotel offering and business growth.
“Whilst growth is welcome, it is important to remain true to our values of personalised relationships and services, delivering best-in-class technology. We are currently also supporting Elegant Hotel Collection in its launch within the luxury market. They are taking a community-centric approach to experience-led luxury buying behaviour, which is somewhat refreshing.”
HotelREZ is also working with its customers to significantly reduce their environmental impact through green best-practices, social and environmental governance in their maintenance, services, logistics, products, and supply chain. Sustainability has also been a hot topic internally for some time –-ten years ago the company was already an active contributor to The Nature Conservancy ‘Plant a billion trees’ initiative and continues to be very much aware of the pressing need to mitigate climate change. To that extent it has always been ahead of the curve for the need to take responsibility of individual carbon footprints and climate impact.
Outperforming the market
“There are other market trends that we are looking into more -– blockchain, machine learning and AI, for example. The market is clearly evolving; 51% of traffic is mobile and 65% of same-day arrivals are via smartphone. Our distribution strategy has seen around a 35% swing to hoteliers’ direct traffic, six times the collection of vital data and around a 25% increase in direct revenue. This reduces members’ cost of sale and improves their margins. We are looking at how AI and machine learning can be integrated to improve overall quality and drive business to hotels.”
In 2023, the company recorded yet again significant year-on-year growth, with revenues increasing by 77% and reservations by 65%. “We are focused on driving more direct business through acquisition, engagement and conversion strategies. Obviously, we intend to continue outperforming the market in terms of growth, both in the number of hotels joining us and of course in the level of transactions and incremental income generated for member hotels. It has been interesting to see that when hoteliers reconsider their distribution partner and include us in an RFP, we will generally win it. So, we encourage hoteliers to shop around and ensure they select the right partner that fits their growth strategy,” says Mark, outlining the company’s plans for the future.
“We are focused on a list of KPIs, particularly around the WebServices area which we will be rolling out to our hotels in the first half of 2024. This will drive more direct business to them at an attractive cost of sale. In terms of growing HotelREZ, we are always looking at potential acquisitions or investments that will add value to our offering and market strength.”
