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Naumi Hotels Gains Streamlined Financial Report Generation, Internal And External Compliance, And Financial Consolidation For Rapid Expansion

About Naumi Hotel

Naumi Hotels is a locally-grown luxury boutique hotel group which takes pride in reinventing the hospitality experience with designer aesthetics, luxurious comfort, and bespoke hospitality experiences.

Always aiming to provide personalised hospitality for its guests, Naumi Hotels operates 7 establishments in Singapore, Australia and New Zealand, each of which draws on the history of its locale to inspire the thematic interior design of its guest rooms.

Currently Using: Oracle NetSuite (Cloud)

The Problem

With its continuous expansion throughout the Asia-Pacific region, Naumi Hotels recognised that their existing business software was insufficient for their needs as it offered only basic accounting and management functionalities, and required manual inputs that were inefficient and could not be scaled up for a regional expansion strategy.

This meant that the hospitality label needed a new business management system with the features necessary for managing establishments in various locations around the Asia-Pacific region. These included PO creation, approval matrix, bank reconciliation, tax code and smooth integration with third-party platforms. 

To acquire a solution that could support the rapid pace of their expansion, Naumi Hotels engaged AFON’s services in December 2018 to implement an enterprise resourcing planning (ERP) system to replace their old accounting and financial management systems.

The Goal

  • Improve visibility into finances and enable informed decision-making
  • Increase automation and internal control over business processes
  • Integrate disparate business systems to gain a single source of truth
  • Cut down on manual input and reduce errors in producing financial reports
  • Streamline report generation by reducing time-consuming manual data processing through spreadsheets
  • Acquire capabilities for managing intercompany elimination to achieve basic consolidation requirements
  • To close all accounts within 5 days of the following month
  • To provide management reports within 9 days of the following month
  • To have one platform for all companies owned and operated by the Naumi Hotels

The Challenge

As early as 2016, Naumi Hotels was ready to pursue a rapid expansion strategy that would take them from their flagship establishment in Singapore to a total of 7 properties around the Asia-Pacific region, bringing its personalised hospitality experiences to guests in Australia and New Zealand as well.

However, the hospitality label was managing their operations with a basic accounting software and a different financial system at the time, neither of which were sufficient for their growing business needs. Their legacy setup lacked various features necessary to support their expansion plans, such as:

  • Automatic PO generation
  • Financial consolidation
  • Financial reports
  • Management reports

Moreover, Naumi Hotel's staff still had to manually process financial data with the accounting software, which slowed down their report generation and delayed the decision-making process of their key shareholders.

To properly support their regional expansion plans, Naumi Hotels needed a solution that can resolve the challenges of regional expansion - such as compliance with tax codes in different countries - was easily scalable, and could secure their critical business data against unauthorised access.

In 2018, Naumi Hotels began working with AFON in their search for a suitable solution, thanks to our expertise in the field of enterprise resource planning (ERP) software.

“AFON went to much effort to understand our needs thoroughly, and suggested changes to the implementation that were more cost effective for our budget,” said Angelica Diloy, the Group Financial Controller, Operations of Naumi Hotels Pte Ltd

Based on the business needs that were identified, Naumi Hotels eventually decided on Oracle NetSuite, as the true Cloud ERP software offered ease of use, an intuitive design, and potential for scalability, and had the necessary features to support their regional expansion plan.

“We went with NetSuite OneWorld as it could be fully deployed within 3 to 5 months, and had all the features we’d need to manage the financial accounting of multiple establishments in various locations,” said Mandy Kwa, the Accountant of Naumi Hotels Pte Ltd.

Angelica and Mandy, who was part of the Naumi Hotels team double their hat as project managers and team lead and worked together with AFON on the NetSuite OneWorld deployment project, went to great lengths in order to get buy-in from every stakeholder in the group.

With the deployment of Oracle NetSuite, Naumi Hotels gained full visibility into their financial data, and could now generate error-free financial reports in a third of the time they used to take. This allowed the stakeholders of the hotel group to make informed business decisions more promptly than before.

NetSuite also supported compliance with the tax codes of different jurisdictions, as well as automatic elimination of intercompany transactions. This helped Naumi Hotels halve the time they needed to complete financial consolidation of the multiple establishment’s accounts within the organisation, especially with regulatory compliance automatically factored into the process. 

The implementation of NetSuite also paid dividends for Naumi Hotels when the COVID-19 pandemic struck a heavy blow to the global hospitality industry in 2020. Although the hotel group endured its share of the impact from the pandemic, the cloud-based ERP platform helped its staff to make a smooth transition to work-from-home (WFH) arrangements.

“Thanks to NetSuite, we are able to tap on the financial data and forecasting in real-time and anywhere we are, especially now that many of us are working from home. We’re able to update our shareholders and stakeholders via NetSuite on the core requirements of our employees, and shape the operational strategy of Naumi Hotels during these challenging times,” Angelica added.

“We’d also like to thank AFON for the initiative they took to address any issues we encountered, and the effort they put in to ensure the eventual success of the NetSuite implementation project.”

The Result

With Oracle NetSuite, Naumi Hotels achieved significant time and labour savings in multiple accounting and financial processes, and acquired the necessary capabilities to automate many business functions and support their regional expansion throughout the Asia-Pacific region.

Reduction In Time Needed To Close Financial Reports
Reduction In Time Needed To Complete Financial Consolidation For All Hotel Operations
Increase In Speed For Financial Auditing
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"With the implementation of NetSuite, we were able to resolve the challenges we faced during our expansion, as it provided the visibility and capabilities we needed to support the strategy of the company”
Angelica Diloy_Naumi

Angelica Diloy
Group Financial Controller, Naumi Hotels

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