Strand Automates Ownership Services with Tech Partner

Strand adds 12 properties, but only one additional accounting staffer

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. October 14, 2008

MYRTLE BEACH, SC, October 10, 2007. Managing 28 hotels for 19 different ownership groups can be challenging when it comes to financial reporting and performance management. Especially when owners ask for a wide variety of information presented in customized reporting formats. But Strand Development Company has the system down to a science. Thanks to its three-year partnership with Aptech Computer Systems, Strand has expanded its portfolio from 16 properties to 28 and increased its breadth of financial management services while adding only one financial management person to handle the additional hotels.

"In 2004, most of our large hotels had one full-time person on the administrative staff dedicated to compiling and transmitting the daily operating information we require at our central offices," said John Johnson, corporate controller for Strand Development, based in Myrtle Beach, S.C. "Since we implemented Aptech's automated accounting software, we have been able to eliminate that position and reassign the staff member to a role assisting guests. We did not foresee this advantage when we installed Aptech's products and our properties are reaping the benefits of greater guest service." Strand uses Aptech's Profitvue(R) centralized back-office accounting, Webvue(R) online utility that links to Profitvue in the corporate office via the Internet, and Execuvue(R) business intelligence for performance analysis and ownership reporting.

Ownership reports for 28 hotels by 11 a.m.

"Strand requires that all its properties have their daily performance numbers to us by 9 a.m. the following day," Johnson said. "So at 10:30 or 11 a.m. we can deliver daily operating numbers to our owners and managers. We break out each property's daily attainment and run reports showing performance against budget so our ownership groups can review a current financial picture of their assets."

Strand also found its financial reporting system was versatile enough to handle special requests. "We get calls from owners evaluating refinancing asking for average daily rates by the month for the last three years," he said. "With Execuvue, it is easy for us to provide that information quickly for a three-year period. The system also lets us export to Excel quickly for owners who prefer spreadsheet reports."

Faster reporting = efficient cost accounting

That is the type of detail-oriented custom management service that has enabled Strand to grow its business rapidly. In addition to the 28 properties it manages, Strand picked up two hotel accounting service contracts with other properties through a bidding process. The company's internal financial reporting process has gotten so efficient that Strand is offering its accounting expertise to local independent operators. "Execuvue allows us to create customized reporting to quickly adapt to just about any hotel company's financials," Johnson said. "So we are beginning to offer accounting services to other hotels." Johnson explained that many small independent hotel owners do not want the full services that come with a management company, but they don't have a strong hotel accounting background either, so they are forced to rely on local CPAs who often are unfamiliar with the special needs of hoteliers. "We know the hotel business and can provide statements that are designed specifically for the hospitality industry."

"When we brought Aptech on in 2004 we had 16 properties, now we will have 28," Johnson said. "During this growth we only added one accounting person at our corporate office while we nearly doubled our size. Aptech understands our business and knows why we need the information we want; they are an excellent technology partner for Strand and handle our challenges very well."