The Neighborhood Hotel’s Journey to 75%+ Occupancy through PriceLabs’ Minimum Stay Rules

REVENUE MANAGEMENT

Matthew Shanley, Director of Revenue Management and Operations at The Neighborhood Hotel, faced significant challenges managing revenue for their unique apartment-style hotels in highly seasonal markets like Chicago and Southwest Michigan.

Why it matters: By implementing PriceLabs, Matthew optimized revenue management by balancing occupancy and Average Daily Rate (ADR), streamlining operations, and adapting to fluctuating demand.

Discover how PriceLabs’ dynamic pricing and advanced features helped The Neighborhood Hotel overcome seasonality challenges and maximize revenue without compromising guest experience.

Top 3 Core Objectives: Managing revenue for The Neighborhood Hotel’s unique properties presented several challenges: seasonality fluctuations, length of stay optimization and manual pricing adjustments.

Managing Seasonality Fluctuations: With peaks in summer and significant drops in winter, especially in Southwest Michigan, balancing occupancy and revenue was complex.
Length of Stay Optimization: Determining the optimal minimum stay requirements was difficult. Initially, strict minimum stays led to lost occupancy.
Automating Pricing Adjustments: Adjusting rates and stay requirements without advanced tools was time-consuming and ineffective, making it hard to respond quickly to market changes. Hence, automation was a core objective.

"The hotel in Lincoln Park is over 75% occupied in 2024 with a RevPAR $219.91. The one in Little Italy hotel is over 72% occupied in 2024 – our first year operating the hotel. Both South West Michigan hotels are over 50% occupancy for the first time ever in a very seasonal market!"

Matthew Shanley

Director of Revenue Management and Operations, The Neighborhood Hotel

Innovators Mentioned

The Neighborhood Hotel

PriceLabs

Matthew Shanley

Director of Revenue Management and Operations, The Neighborhood Hotel

The Neighborhood Hotel

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👍 Director of Revenue Management and Operations, The Neighborhood Hotel Matthew Shanley said that Implementing PriceLabs’ advanced features led to increased occupancy without drastically lowering rates.:

"The hotel in Lincoln Park is over 75% occupied in 2024 with a RevPAR $219.91. The one in Little Italy hotel is over 72% occupied in 2024 – our first year operating the hotel. Both South West Michigan hotels are over 50% occupancy for the first time ever in a very seasonal market!"

⚖️ The selection process: During their research process, Matthew Shanley evaluated PriceLabs's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that PriceLabs was the best fit solution:

Director of Revenue Management and Operations, The Neighborhood Hotel Matthew Shanley said, about their decision: "PriceLabs has been the one consistent tool in our tech stack that we’ve relied on since day one, even as everything else has evolved."

📈 The results: Implementing PriceLabs’ advanced features led to increased occupancy, optimized ADR, and improved operational efficiency.

Increased Occupancy: By adjusting minimum stay requirements and leveraging dynamic pricing, they filled more rooms without drastically lowering rates.
Optimized ADR: Despite increasing occupancy, they maintained a healthy ADR by attracting the right mix of guests and avoiding over-discounting during low seasons.
Improved Operational Efficiency: Automation reduced the time spent on manual pricing adjustments, allowing Matthew to focus on strategic initiatives.