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Success Story: Platinum Hospitality

Success Story: Platinum Hospitality


Challenges:
  • Growing hotel developer and operator needed a financial management product that had robust support for multiple entities
  • Wanted a scalable financial management system to support needs now and into the future

Previous Solution:

  • QuickBooks
Results with Intacct:
  • Robust multi-entity functionality allowed headquarters to manage the finances for all hotels with only 2 full time accounting staff
  • Platinum Hospitality saved about $400,000 per year in labor costs
  • Platinum Hospitality can now easily handle complex inter-company transactions that would be a hassle in most on-premises systems

Platinum Hospitality Streamlines Operations and Simplifies Multi-Entity Financial Management with Intacct


Problem
Platinum Hospitality Management, a hotel developer and operator representing mid-market, select-service brands for Marriott, Hilton and Intercontinental, abandoned Intuit's QuickBooks when the software could no longer support the company's property portfolio, which was growing in size and complexity.

Platinum Hospitality sets up its hotels as individual corporations with two or three different bank accounts connected to the finances. The company also runs separate subsidiaries for food and beverage, guest services and construction. But even with a robust ERP system in place, hiring skilled accounting staff for each hotel was cost prohibitive.

Solution
Microsoft and Sage - solutions Platinum Hospitality evaluated closely before selecting Intacct - only show one business unit at a time, while Intacct's Web-based multi-entity functionality allows users to manage all hotel operations in one unified real-time view.

Users at corporate headquarters in Nashville, Tennessee, can now run reports on a per-occupied-room-cost, per-available-room and percentage-of-room-revenue basis. Fine-grain permission controls enable managers at each hotel to enter daily sales figures and expenses with the source documents attached. With a few clicks, headquarters can review and authorize transactions online.

Platinum Hospitality also didn't have to buy and maintain any additional hardware or software to use Intacct's applications, which are delivered as a service over the Internet.

Result
Intacct's Web-based solution saved Platinum Hospitality about $400,000 per year in labor costs. Instead of hiring at least 10 full-time accountants to staff each hotel, Platinum Hospitality can manage financial operations from the company's headquarters with only two employees.

"With Intacct, we can maintain the hotels as separate entities, but still manage our entire financial operation in real time," said Mitch Patel, CEO and President of Platinum Hospitality. "Intacct also helps us with critical inter-company transactions, which would be a hassle to execute in most premise-based solutions."