The verdict in three sentences
A multi-property PMS with channel manager and direct booking engine costs between 80,000 and 200,000 EUR as custom development, or 4 to 12 EUR per room per month in SaaS mode. The return on investment does not come from the software itself but from the OTA commissions saved (15 to 20 % on every night steered toward the direct channel). For a group of 4 hotels and 320 rooms in London, each point of direct booking gained is worth several thousand euros a month.
Custom or SaaS PMS: which model to choose
The choice depends on the number of properties, integration needs (F&B till, accounting, yield management) and the desire to own a booking engine free of third-party commission.
| Criterion | SaaS PMS (Mews, Cloudbeds, Opera Cloud) | Custom Kolonell PMS |
|---|---|---|
| 2026 entry cost | 0 to 8,000 EUR setup | 80,000 to 200,000 EUR |
| Recurring cost | 4 to 12 EUR/room/month | Hosting 300 to 900 EUR/month |
| Time to go live | 4 to 8 weeks | 4 to 7 months |
| Direct engine commission | 0 to 2 % per vendor | 0 % (full ownership) |
| Workflow customisation | Limited to vendor options | Total |
| Till + accounting integration | Standard connectors | Custom (dedicated API) |
| Guest data ownership | Shared with vendor | 100 % group |
For a group of fewer than 3 hotels, SaaS is often the most rational path. Beyond 300 rooms or with specific processes (spa, restaurant, events), custom pays off quickly.
The real lever: taking back control of distribution
A London hotel group typically books 55 to 70 % of its nights through OTAs (Booking, Expedia). Each OTA night costs 15 to 20 % commission. Shifting even 10 points of volume to the direct channel reshapes the group's economics.
| 2026 metric | Before (OTA dependence) | After PMS + direct engine |
|---|---|---|
| Direct booking share | 30 % | 45 % |
| Average OTA commission | 18 % | 18 % (on reduced volume) |
| Annual occupancy | 68 % | 73 % (yield optimised) |
| RevPAR (revenue per available room) | 92 EUR | 104 EUR |
| Direct acquisition cost | 4 to 6 % | 4 to 6 % |
| No-show after pre-authorisation | 9 % | 4 % |
Integrated yield management (dynamic rates by occupancy and events) adds a further 3 to 6 % of RevPAR.
Mini case study
Marine, operations director of a 4-hotel group in London (320 rooms), books 62 % of revenue through OTAs. Annual volume: 78,000 nights at 118 EUR average rate. By shifting 12 points of volume to direct, she recovers 9,360 nights x 118 EUR x 18 % commission saved, roughly 198,800 EUR a year. The 150,000 EUR custom PMS pays for itself in under 10 months, before reception productivity gains.
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FAQ
How much does a PMS for 4 hotels really cost in 2026?
In SaaS, budget 4 to 12 EUR per room per month, i.e. 15,000 to 46,000 EUR a year for 320 rooms. Custom means an upfront 80,000 to 200,000 EUR, then 300 to 900 EUR monthly hosting.
Is the channel manager included?
In SaaS PMS it is often an add-on (1 to 3 EUR/room/month extra). In custom builds it is part of the project and connected to Booking, Expedia and your direct engine via API.
Can I connect the restaurant till and accounting?
Yes. Standard connectors exist in SaaS; in custom builds we develop a dedicated API syncing F&B, spa, accounting and financial exports in real time.
How long for a multi-site rollout?
Budget 4 to 8 weeks in SaaS and 4 to 7 months for custom, reception training included and a progressive hotel-by-hotel switch.
Is the direct booking engine truly commission-free?
In custom builds you own the engine: zero third-party commission, only payment fees (1 to 2 %) apply. That is the main saving against OTAs.
Let's scope your project. Share your number of hotels, rooms and integrations (till, spa, accounting) for a custom PMS quote or an objective SaaS comparison. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.

