The verdict in three sentences
For an 8-property group, a SaaS PMS at 8-25 EUR/room/month covers 80 % of reservation and housekeeping needs with no heavy investment. Custom development at 90,000-240,000 EUR is only justified when yield management, multi-channel rates and group-level financial consolidation are your competitive edge. The real lever is not the software but RevPAR: +5 to +12 % on a group this size pays for either option in under a year.
SaaS PMS vs custom development
A market PMS (Property Management System) is rented per room. Custom is bought once, owned, and integrated with your channel manager, yield engine and group accounting. 2026 order of magnitude:
| Criterion | Market SaaS PMS | Custom |
|---|---|---|
| Upfront cost | 3,000-12,000 EUR (setup) | 90,000-240,000 EUR |
| Recurring cost | 8-25 EUR/room/month | 1,800-4,500 EUR/month (maintenance) |
| Time to deploy | 6-10 weeks | 5-9 months |
| Channel manager | Included or +2-5 EUR/room | Custom, integrated |
| Yield management | Module +3-8 EUR/room | Proprietary algorithm |
| 8-site consolidation | Standard, rigid | Tailored to your group |
| Code ownership | No | Yes |
For a group of 8 hotels with 40 rooms each (320 rooms), a PMS at 15 EUR/room costs 4,800 EUR/month, i.e. 57,600 EUR/year. Over three years: 172,800 EUR in licences, with no ownership. Custom becomes competitive once the horizon exceeds 3-4 years.
What tips the decision
Some functions lean clearly towards custom. Here is where the value gap widens:
| Function | 2026 business impact | Verdict |
|---|---|---|
| Centralised direct booking | -15 to -25 % OTA commissions | Custom |
| Multi-site yield management | RevPAR +5 to +12 % | Custom |
| Real-time housekeeping | -0.5 to -1.5 h/room/day | SaaS is enough |
| Dynamic rates per channel | +3 to +8 % revenue | Custom |
| Consolidated group reporting | Close -3 to -5 days | Custom |
| Mobile check-in | Satisfaction +10-15 pts | SaaS is enough |
OTA commissions (Booking, Expedia) reach 15-25 % of revenue. Recovering 5 points of direct booking on a group doing 6M EUR in room revenue saves ~75,000 EUR/year. That figure, more than RevPAR, often funds the project.
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Mini case study
Mark, managing director of an 8-hotel group in central London (320 rooms, 6.2M EUR room revenue), pays 4,800 EUR/month for a SaaS PMS and 21 % average OTA commissions. A custom project at 165,000 EUR, amortised over 4 years (41,250 EUR/year + 30,000 EUR maintenance = 71,250 EUR/year), must beat 57,600 EUR of annual licences. The 13,650 EUR gap disappears once direct booking gains 3 points (37,200 EUR) and RevPAR rises 6 % (~372,000 EUR of added revenue). Net first-year ROI: over 300,000 EUR. Custom clearly wins at this scale.
FAQ
How much does a SaaS PMS cost for 8 hotels? Budget 8-25 EUR/room/month depending on modules. For 320 rooms at 15 EUR, that is about 57,600 EUR/year, excluding a 3,000-12,000 EUR setup.
What budget for custom hotel software? Between 90,000 and 240,000 EUR depending on scope (channel manager, yield, consolidation), plus 1,800-4,500 EUR/month maintenance. Typical timeline: 5 to 9 months.
Does custom really improve RevPAR? Yield management tailored to your 8 sites and seasonality typically delivers +5 to +12 % RevPAR in year one. On a 6M EUR group, that is hundreds of thousands of euros.
Can we keep Booking and Expedia? Yes. The channel manager syncs availability and rates with OTAs while driving direct booking, which costs 0 % commission versus 15-25 %.
How fast does custom pay off? From 300 rooms, the break-even is usually 12 to 24 months, driven by saved commissions and RevPAR.
Let's scope your project. Share your number of properties, rooms, distribution channels and indicative budget: we cost SaaS PMS vs custom with a 3-year ROI. 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.
