CHMWarnick Unveils Proph+IT

BOSTON – Asset manager and owner advisory firm CHMWarnick has launched a business intelligence platform to improve owner and operator ROI called Proph+IT.

The business intelligence platform streamlines performance metrics across entire portfolios to create more strategic clarity and allow for faster responses to help improve returns, according to Managing Director/EVP of CHMWarnick Derek Olsen.

Proph+IT currently powers CHMWarnick’s asset management platform, which has included over 400 hotels and has informed strategies across all property types and tiers. It is now making the platform available to the broader investment and management communities.

Offering examples of how the platform works, Olsen told Hotel Investment Today that CHMWarnick identified a spike in water expense through Proph+IT’s utility expense analysis and examine whether it was related to price or water consumption – with the latter being the cause. He said a hidden leak was identified and contained, saving thousands in excessive water bills and potential damage to the asset.

Next, the loan on a lifestyle hotel located in a major market was set to mature, with a requirement for a trailing 12-month Debt Yield of 8.5%. Failure to meet this threshold would necessitate a loan paydown to achieve compliance. Recognizing this early, CHMWarnick proactively began monitoring the Debt Yield well ahead of the testing period. Using the monthly KPI analysis tool in Proph+IT, they identified potential expense savings that could be implemented before the test date, as well as expenses that could be deferred until afterwards. “This approach allowed us to gradually close the gap between the forecasted DY and the required DY,” Olsen said. “At the outset of this process, our client was facing a required loan paydown of $1.217 million. Through iterative analysis and adjustments, we eliminated the need for any paydown.”

At a big box convention hotel, CHMWarnick utilized the benchmarking function to analyze laundry costs and productivity across other similar operations. Not only were they able to identify significant savings (more than $1 on POR basis), but they also uncovered that the cost benefit of facilitating laundry service for local hotels under the same brand was not beneficial to the property, based on the wear and tear of equipment.

CHMWarnick added that key features of Proph+IT include:

Seamless integration: Built on Microsoft Power BI and Excel, Proph+IT integrates into existing workflows with no lengthy onboarding process.

Pre-mapped systems: Proph+IT is already mapped to the chart of accounts for the major brands and more than 15 third-party management companies.

Detail: With over 63,000 individual line items, users can dissect detailed labor and productivity metrics, food and beverage expenses, and key insights at high levels.

Dynamic dashboards: Customized views to track portfolio wide KPIs or drill down into individual properties for a deeper look into performance anomalies.

Benchmarking: Benchmark current and forecasted performance of individual hotels and portfolios across dozens of performance KPIs and labor productivities.

Efficiency: Automates the collection and analysis of P&L statements, forecasts, budgets, and other reports.

Cloud-based accessibility: View data from PCs, tablets, or mobile devices through a cloud-based platform.