The verdict in three sentences
For a group of 5 hotels and 900 rooms managed from Singapore, with properties in the city and the region, replacing the PMS with fully custom software makes no sense: an off-the-shelf PMS at USD 4.30 to 9.80 per room per month (EUR 4 to 9) remains the operational core. The real gap sits above it, in a custom consolidation layer costing USD 40,000 to 75,000 that brings together bookings, wholesaler and tour operator allotment contracts, the channel manager and group revenue. With a 6% RevPAR uplift target, this layer pays back in less than a season.
The problem with a group running 5 PMS
Each hotel has its own PMS, sometimes from two different vendors after an acquisition. The operations director gets five Excel reports on Monday, wholesaler allotments live in spreadsheets, and missed release dates mean rooms sold off cheaply at the last minute.
| Head office need | With 5 separate PMS | With a consolidation layer |
|---|---|---|
| Group occupancy and RevPAR | Manual reports, D+3 | Daily dashboard, per hotel and per channel |
| Wholesaler allotment contracts | Spreadsheets, re-reading contracts | Allotments, releases and seasonal rates tracked automatically |
| Releases and returned rooms | Often forgotten | Alerts at D-21, D-14, D-7 |
| Channel mix (wholesale, OTA, direct, groups, corporate) | Estimated | Measured, with acquisition cost per channel |
| Rates and availability | Updated hotel by hotel | Central recommendations pushed to the channel manager |
| Wholesaler invoicing and reconciliation | 2 to 3 weeks | A few days, gaps flagged |
2026 options compared
Indicative orders of magnitude for 900 rooms, excluding GST.
| Option | Initial cost | Annual cost | What it delivers |
|---|---|---|---|
| Entry-level off-the-shelf PMS (USD 4.30/room/month) | USD 10,000 to 20,000 | USD 47,000 | Hotel-level operations, little group view |
| High-end multi-property PMS (USD 9.80/room/month) | USD 27,000 to 50,000 | USD 106,000 | Partial group view, allotments poorly covered |
| Current PMS + custom layer | USD 40,000 to 75,000 | Current licences + USD 8,500 to 13,500 | Consolidation, allotments, group revenue management |
| 100% custom hotel software | USD 200,000 to 340,000 | USD 30,000 to 50,000 | Full control, high risk, 12 to 18 month timeline |
| Status quo (spreadsheets) | USD 0 | Hidden cost: 1 to 2 FTE at head office | No consolidated view |
Scope of the custom layer
| Module | Content | Budget |
|---|---|---|
| PMS and channel manager connectors | Reading bookings, rates and availability of the 5 hotels | USD 10,000 to 19,000 |
| Wholesaler allotment contracts | Contract entry, allocations, releases, supplements, early booking offers | USD 8,500 to 15,000 |
| Group dashboard | Occupancy, ADR, RevPAR, 90-day forecasts | USD 7,000 to 12,000 |
| Revenue management support | Rate recommendations, detection of undersold periods | USD 8,500 to 17,000 |
| Wholesaler invoicing and reconciliation | Invoice checks, statements, gaps | USD 5,000 to 8,500 |
| Acceptance, training, documentation | Head office and 5 hotel managers | USD 1,500 to 3,500 |
Timeline: 5 to 7 months, ideally delivered before the next season's sales open.
Mini case study
Wei Ling, operations director of a 5-hotel group, manages 900 rooms at 82% average occupancy and an ADR of USD 210, a RevPAR of USD 172 and about USD 56.5 million in room revenue a year. A 6% RevPAR uplift is worth USD 3.4 million. Even attributing only a third of that gain to the software layer, through recovered releases and better arbitrage between wholesale and direct sales, the gain reaches USD 1.13 million, for a USD 61,000 investment. Payback is measured in weeks of peak season.
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FAQ
Do we need to change PMS in all 5 hotels?
No. The custom layer reads data from existing PMS via API or export. If a property uses a PMS without an API, a dedicated connector costs USD 2,700 to 5,000.
Do we still need the channel manager?
Yes, it distributes rates to OTAs. The custom layer sends it recommendations, approved manually at first, then automatically for proven rules.
How are contracts in several currencies handled?
Contracts in SGD, USD or EUR are converted at the daily rate for reporting, while keeping the contract currency for invoicing.
Where is guest data hosted?
In Singapore, in line with the PDPA, with EU hosting options for European guests under GDPR. Hosting costs USD 500 to 1,200 a month.
What RevPAR uplift is realistic?
3 to 8% depending on the starting point. Groups that rely heavily on wholesalers often see the biggest gain thanks to recovered releases.
Let's scope your project. Send us your PMS, channel manager and share of wholesale business: we will price a consolidation layer between USD 40,000 and 75,000, delivered in 5 to 7 months. 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.
