[SE Daily] Lodging Market and Property Information can be Found Here, Hotelysis
"In the capital market, where borders have disappeared, investment in the lodging industry is intensifying with the poor and the poor. If you look at market statistics for the lodging industry right now, there is a big difference in reliability compared to the United States and other countries."
Hotelysis CEO Eun-Kwang Ham, who is preparing for a service in an unfamiliar field called the integrated risk management platform for the lodging industry, said he decided to start a business to resolve asymmetry in the lodging market information.
CEO Eun-Kwang Ham explained that U.S. hotel data providers such as STR have been seeking to enter the Asian market, but have been struggling with business models based on individual companies' participation in surveys. This is because the survey participation rate was low and there were many errors in the data itself, and in the end, there was a limit to judging the current status of the market as it was limited to large hotel-oriented data.
Hotelysis' Lodging Business Intelligence service, which is scheduled to be beta in October, provides long-term time series data on sales, operating costs, operating profit, and financial status for comprehensive accommodation, including hotels, inns, recreation condominiums, and living accommodations.
And based on this, it provides advisory services through the "Optimizing the lodging business" service that integrates offline expert networks. It is an online and offline integrated service that has not been found in Korea.
"As of 2018, it is estimated that 49,000 accommodation facilities are registered in Korea, of which 1,500 hotels are provided to the Korea Hotel Association. In other words, only 3% of the market is publicly available, and data on operating costs and operating profit are not provided."
Hotelysis points out that statistics related to the domestic lodging industry were limited information provided within a limited range, and is generating extensive and specific statistical data. It collects and analyzes data from various sources through its own artificial intelligence algorithm, and builds a database on facility composition, sales, operating costs, operating profit, and financial status for individual assets. So far, data from 2005 to 2018 of 24,500 accommodation facilities have been incorporated into the database, and by the end of the year, it is working with the aim of incorporating data of all 49,000 accommodation facilities.
"The biggest feature of our clientele is the need to generate stable revenue through the lodging industry, which requires accurate data."
Hotelysis will provide services to everyone who forms the value chain of the lodging industry, including owners of accommodation facilities or operators entrusted with the operation, financial firms that lend capital to them, and advisors who provide advice to them. Hotelysis currently estimates that the number of potential customers who need their data is about 47,500, including owners, operators, financial firms, and advisors that make up the value chain of the domestic lodging industry.
The lodging industry is highly volatile because the proportion of real estate is absolute, so liquidity is weak, while the transaction unit is only one day. As a result, since the volatility of asset value is severe and the burden on working capital is high, investors and financial companies are judged to be an asset group with weak stability. However, since it is an asset group with large profits that can be expected when establishing a stable value chain, Hotelysis is trying to contribute to stabilizing the value chain of the lodging industry in Korea and other Asian countries.
Hotelysis CEO Eun-kwang Ham said, "The lodging industry, which started before B.C., is currently an important part of the industry in most countries around the world," adding, "In Korea, the proportion of the lodging industry is insignificant compared to the overall economic size, but we expect it to grow rapidly."