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Hotelysis Launches ‘HBI Dashboard’, a Lodging Business Intelligence

2021-11-19 23:13
Comprehensive data, covering all types of lodging properties,
to provide exhaustive visibility across the entire value chain in lodging industry.

Hotelysis announced that it will launch beta service of “HBI Dashboard,” the country’s first AI-based lodging business intelligence platform, from December 1. The HBI dashboard is a membership-based software-as-a-service (SaaS), accessible directly from a web browser without installation.

The HBI Dashboard provides data and analysis of the data for 21,900 lodging properties, out of 31,500 operating as of 2019, including facility mix, demand, price, revenue, expense, financial position, and asset value data. Each data item, together with analysis of it, is provided in the same format for the period from 2005 to 2019, with users receiving average data broken down to administrative regions and property types.

Eun-Kwang Ham, CEO of Hotelysis, defined the strength of the HBI Dashboard as “a comprehensive view over the entire value chain at a submarket level.” Currently, the Korea Hotel Association’s Hotel Operating Statistics is the most widely used lodging market statistics, available publicly. However, based on the number of properties, hotels account approximately for only 7% of the entire lodging supply, and the statistics covers only half of the 7%. In addition, the visibility is limited as the available data is limited down to the top-line. He pointed out, “This is the biggest barrier between the lodging market and the capital market. We expect that Hotelysis will be able to contribute to solving this problem, because our data covers all lodging property types and all financial items.”

Data provided at HBI Dashboard includes items of supply, demand, price, revenue, expense, financial position and asset value data, covers property types of hotels, timeshares, motel/inns and extended-stays, for the period from 2005 to 2019. In particular, the financial position data allows to monitor the volatility in working capital which has been the cause of so-called insolvency by paperprofits, and the asset value data allows to compare the estimated income value with the book value and the replacement cost, which has been pretty much in the blind spot of the valuation practice in Korea.

Hotelysis was established in September 2019, based upon mutual understanding between Eun-Kwang Ham, who has been in charge of Mirae Asset’s notable hotel investments around the world, and CTO Sang-Hoon Jin, a 24-year veteran software engineer. Recognizing that there was only limited business data available on Korean lodging markets, they have collected all the data they could obtain from various sources, connected them, and filled the blanks with the AI algorithms they developed. “There were many trials and errors in putting them together in the same format at the beginning because of inconsistency in sample and aggregation criteria among various statistics. However, we were able to significantly improve the performance of AI algorithms as we went through the learning process with various macroeconomic indicators” said Sang-Hoon Jin.

Hotelysis plans to bring further down the error rate for the estimated data by AI algorithms, and improve the interface so that users can customize data items and analysis methods more conveniently. Eun-Kwang Ham said, “Although current error rates for each data item are insignificant at the market level, those at the individual property level need to improve. We will continue to work on this, mobilizing our extensive expert network and partnership program.”

The beta service on HBI Dashboard runs for two months from December 1, 2021 to JanuaDecember 31. During this period, users will be granted a standard membership for free, which is normally charged KRW 500 thousand per month. When the beta service period expires, the users will need to choose whether to convert to a paid membership, including an upgrade to a deluxe membership, at a discounted subscription fee. Details of the discount promotion and the access to the services by membership grade will be posted separately on the notice page on the website.