G6 Hospitality, the parent company behind Motel 6 and Studio 6, has reported remarkable success with its Revenue Management Services (RMS) program, which has significantly outperformed both its broader portfolio and the general market. The program's innovative approach combines proprietary automation tools with daily market monitoring and bi-weekly strategy sessions, enabling property managers to enhance guest experiences while experts optimize pricing and promotional strategies.
In the first quarter of 2025, properties enrolled in the RMS program witnessed an 11% increase in year-over-year revenue, a figure that doubles the growth rate of non-participating properties and surpasses industry standards. Additionally, these properties achieved a 10% higher Average Daily Rate (ADR) compared to their counterparts, highlighting the program's ability to maximize revenue through strategic pricing.
The digital channels of G6 Hospitality, particularly its app and website, have seen substantial benefits from the RMS program. A notable 11.5% growth in web and app channel bookings was recorded for RMS properties in Q1 2025, in stark contrast to a 4.4% decline observed in the rest of the portfolio. This success is attributed to advanced dynamic pricing, optimization of online travel agency (OTA) partnerships, and the efforts of a dedicated performance marketing team.
The momentum continued into April 2025, with revenue-managed properties posting a 9% revenue growth, far exceeding the 0.7% growth of non-managed hotels. The ADR for these properties reached $78.24, significantly higher than the $66.68 ADR for non-RMS properties. Sonal Sinha, CEO of G6 Hospitality, emphasized the program's role in empowering franchisees with cutting-edge tools and strategic insights to outperform the market and deliver exceptional value to guests.
This announcement comes on the heels of the launch of the AI-powered My6 app, which has already contributed to a 14% increase in direct bookings year-over-year. Together, these initiatives reflect G6 Hospitality's commitment to leveraging technology and data analytics to foster growth, improve guest satisfaction, and support the success of its franchisees.
