Eye on Innovation: Flow-through Business Analysis

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. May 26, 2009

ATLANTA, GA, May 26, 2009 - Softscribe Inc.'s "Eye on Innovation" solution series is a monthly video press release that gives hotel operators a quick boost in business confidence by spotlighting a technique, idea or strategy that can improve topline revenue, guest loyalty or operating efficiency

Innovators:

---|Joseph S. Bello, CHA, vice president, asset management, Inland American Lodging Advisors, Inc. and the Inland Asset Management Team.

---|Warren Winslow, CPA, CHAE, CHTP, Corporate Controller for Peabody Hotel Group

Where they innovated:

---|At 103 properties controlled by Inland American Lodging Advisors (IALA) and owned by Inland American Lodging Corporation.

---|At Peabody Hotel Group, which operates three of its own branded properties and six additional hotels with Hilton and IHG flags.

What they innovated:

---|First, both leaders automated the flow through reporting process that calculates after budget profitability for departments, properties and hotel groups. Then, they used the tool to develop stronger managers.

"A low Gross Operating Profit flow-through triggers greater focus on a hotel by our asset management team, as well as our various management companies. This helps us develop critiques and action plans together that ultimately maximizes ownership value." - Joseph Bello

"When your property teams are educated regarding the foundation and application of flow-through, they are inevitably better managers, because they understand what it takes to retain and allow more revenue to flow to the bottom line." - Warren Winslow

Who helped:

The professional team at Aptech Computer Systems, Inc. with Aptech's Executive(R) business intelligence tool.

Can you innovate too? Yes:

1. Focus on flow-through whether you calculate it manually or with an automated system.

2. Continue to pay close attention to the impact your expenses have on new revenue.

3. Train your team to monitor your flow-through score weekly.