How a Regional Motel Increased Revenue, Improved Distribution and Returned to Profit After Renovation

Opportunity

After making a significant investment to undertake a full renovation of the property, the new owners were becoming increasingly frustrated by the onsite management team’s inability to return a profit and improve the value of their asset.

Actions

RevenYou undertook a Distribution Audit, identifying the following areas to focus on:

• Simplified room types and used USP’s within the new names.

• Introduced seasonal and long lead promotional rate plans to build base business.

• Reviewed the distribution partner channels to be more specific to the Australian market and optimised the listings to achieve 100%-page scores.

• Updated the property’s website to ensure it was optimised for Google rankings.

• Implemented rate parity on the OTA sales channels and incentivised direct bookings through value adding.

• Implemented a dynamic pricing strategy to grow RevPar.

• Undertook training with the onsite team in the areas of data capture for future marketing activities and identifying unique selling opportunities that contribute to a growth in year-on-year profit.

Outcomes

• In one month alone, the property doubled revenue year-on-year.

• Within three months of implementing our strategy, the property returned a profit for the first time under the new ownership.

• The property became self sufficient and the owners were no longer having to supplement income to cover operational expenditure.

• The onsite management team transitioned from being sceptical and distrustful of our team to actively looking for every opportunity to grow revenue.

FAQ’s

How can a regional motel improve revenue and return to profit after renovation?

Improving revenue after renovation requires more than upgrading the physical asset. It is essential to align pricing, distribution and team capability with the property’s new positioning. In this case, the motel reviewed its distribution channels, refined its presence in the market and implemented targeted training for the onsite team to ensure they could actively support revenue growth.

By combining a clearer distribution strategy with improved data capture and team engagement, the property was able to double revenue in one month and return to profitability within three months. This approach created a more sustainable operating model and ensured the renovation investment translated into stronger financial performance.