Turning the Tide: Hotel Michanti’s Journey to Sustainable Profitability

By Cécile Ney
Woman offering beverage and surfers on the beach

A captivating haven blending nature and adventure, Hotel Michanti opened its doors in 2017 with one clear aim: to ensure guests never forget El Salvador. Positioned in Playa El Zonte, it quickly gained prominence as a sought-after destination for travelers and surf enthusiasts. With its international recognition as an adventure hub, Hotel Michanti stands out as a cultural melting pot, offering a wide array of services from surfing and accommodations to exquisite dining experiences.

Balancing a Commitment to Sustainability with Profitability

As Hotel Michanti’s popularity soared, a significant challenge emerged for the leadership team: balancing the commitment to sustainability with maintaining profitability, particularly in the hotel’s restaurant. Despite its success, the lack of a clear cost allocation structure between the hotel and restaurant complicated efforts to optimize costs effectively. To address this challenge, Hotel Michanti joined the Bpeace Travel Maximizer program. In partnership with the USAID Economic Competitiveness Project in El Salvador, the Travel Maximizer program aims to enhance the competitiveness and stimulate the growth of the Salvadoran tourism sector. Hotel Michanti was carefully matched with expert volunteer Jordan Less to streamline operations and enhance financial sustainability.

Through comprehensive analysis, Jordan identified essential metrics such as RevPAR (revenue per available room), critical for informed strategic decision-making. Together with the Michanti team, they also evaluated the hotel’s employee meal program, which allows staff to enjoy credits for sampling various dishes and drinks, a testament to Pablo’s commitment to fostering a culture of excellent customer service for both guests and employees. 

With Jordan’s guidance, the team analyzed historical data to pinpoint areas for improvement such as restructuring employee meal subsidies and optimizing the menu based on best-selling dishes and highest profit margins. 

The Results: A Path to Sustainable Profitability

Implementing Jordan’s recommendations yielded significant cost reductions with purchasing costs dropping from 38% to 29% and breakfast expenses for guests cut by 50%. Moreover, Jordan’s insights on enhancing the hotel’s online presence led to increased bookings via platforms like TripAdvisor.

Participation in the Travel Maximizer program provided Michanti with a valuable diagnostic tool for conducting regular financial analysis and assessing the effectiveness of pricing structures in both the hotel and the restaurant.

Michanti’s involvement in the Bpeace program not only improved the hotel’s profitability but also instilled a culture of continuous improvement. Armed with newfound insights, the leadership team is now better equipped to strike the perfect balance between profitability and delivering exceptional experiences, ensuring that Hotel Michanti remains a sought-after destination for adventure seekers. 

“We are immensely grateful; our profitability has surged from 3% to 10% in just a few months,” reflects Michanti’s founder. “Jordan’s guidance completely transformed our results Even when they seemed minor adjustments, they made a big difference.”

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Author

  • Cécile Ney

    Cécile Ney is Bpeace's Impact Manager. She also teaches social entrepreneurship and innovation in Central American universities and previously managed programs in Latin American incubators and accelerators.

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