The Role of Managed IT Services in Successful Hotel Openings, Closings, and Transitions
As we approach 2025, the hospitality industry is expecting a surge in transactions, driven by reductions in interest rates, loan maturity and slowed supply of new properties. In fact, according to JLL research, roughly $5.8 billion worth of U.S. hotel securitized loans will come due for repayment by the end of 2024, catalyzing hotel transactions throughout Q4 and into 2025.
This means hospitality is looking at a lot more openings, reflags and ownership transitions in the coming 12-18 months. For hotels undergoing these changes, effective IT planning and management will be critical to maintaining service continuity, safeguarding data, and ensuring that new systems integrate seamlessly.
The IT Challenges Hotels Face During Transitions
Whenever a hotel undergoes a transition, its IT infrastructure needs careful evaluation and planning. Whether opening a new property, closing one, or transferring ownership, maintaining consistent operations while shifting or upgrading technology can be overwhelming. Some of the key IT challenges during these periods include:
- IT Asset Discovery: New owners and/or managers need a soild understanding of a property’s existing IT assets and the state of those assets to inform their investments in upgrades or new hardware.
- Network Evaluation: Properties undergoing a change in ownership often need a site survey to determine if new or updated network infrastructure is necessary to support staff operations, guest services, and security needs – as well as achieve any relevant new brand standards.
- System Integration: Hotels need to ensure that property management systems (PMS), customer relationship management (CRM) platforms, and other software systems are migrated appropriately and are integrated smoothly during transitions, so there is no impact on the guest experience.
- Data Migration: Transferring operational data, including guest records and loyalty program information, requires precision to avoid data loss or corruption. Hotels should conduct a backup of all relevant data prior to any transition.
- Security Standards: New openings or new ownership often brings about new cybersecurity requirements. Hotels will likely need to revisit security measures like cybersecurity training, patch management, and firewall defenses (to name a few) to ensure their property is prepared to maintain security and prevent malicious attacks.
Why Managed IT Services are Crucial for Successful Transitions
While managing these IT challenges internally can strain hotel teams, especially amid other operational pressures, an outsourced Managed Service Provider (MSP) can offer hotels the support they need to navigate transitions with ease. Here’s why outsourcing IT to a trusted partner is often the smartest choice for hotels undergoing changes:
- Strategic IT Planning: Every transition requires a well-established strategic plan to avoid operational hiccups. An MSP can provide strategic direction and project management expertise to develop detailed roadmaps, ensuring that IT deployments—such as new networks or system upgrades—are smooth and timely.
- Efficient Network Setup: New properties require a stable and scalable network infrastructure to support both guest and back of house (BOH) operations. An MSP can help evaluate existing networks, upgrade them as necessary, get hotels compliant with new brand standards and ensure they have reliable, lightning-fast Wi-Fi from the outset.
- Seamless System Integration: MSPs can help integrate various software systems—such as PMS and CRM platforms—so they work together without issues, preventing operational disruptions that can affect guest services. An MSP with strong hospitality relationships can also help hotels “move to the front of the line” with key vendors should disruptions occur.
- Data Integrity and Security: With data being one of the most valuable assets in hospitality, backing it up and managing it carefully during transitions is essential. Managed IT providers ensure that data migration is handled securely, avoiding loss and minimizing downtime.
- Ongoing Support: Even after the transition is complete, an MSP can offer continued support to address any technical issues that arise, answer tickets to reduce the burden on internal staff and ensure smooth day-to-day operations.
Positioning for Success in 2025
Whether a management company or owner is preparing to open a new property, planning a reflag, or navigating a sale, having the right IT support is key to ensuring that the transition is as smooth as possible.
As the industry braces for a wave of transactions in 2025, proactive planning around IT will be crucial to achieving operational success during openings, closings, and transitions. From designing scalable network infrastructures to ensuring data security and system integration, a trusted MSP can provide the expertise and support needed to navigate transitions efficiently and securely.
About Cloud5’s MSP Services
Cloud5’s suite of Managed Services supports all the technology-related components of a successful hotel operation. We act as an extension of a property’s IT department – offloading common IT tasks, freeing up resources for mission critical initiatives, buttoning up devices, servers and workstations, and ensuring that the IT heartbeat of your business stays strong and steady.
Whether your property needs help managing day-to-day IT requests, supporting strong, secure infrastructure or overseeing innovative IT projects – like transitions, openings/closings or reflags – Cloud5’s Managed Services can help. Our trusted team is available 24/7 to help keep hotel staff connected and systems functioning at peak performance, so hotel IT operations aren’t just more effective, but they’re also more reliable, more secure and less costly. Let’s connect.