Modernizing their tech stack and maximizing revenue in a price-sensitive market: Fray Group’s 15% ADR lift

Fray Group is a family-owned hotel group operating two full-service hotels in the heart of Tepic, the capital of Nayarit in Mexico. With a combined 172 rooms, soon to be over 200, in-house restaurants, and extensive event spaces, the properties cater primarily to business travelers, while also welcoming groups and tourists drawn to the city center location.

With over 120 employees and a focus on warm, attentive service, Fray Group has built a reputation for hospitality excellence. But as their growth accelerated, it became clear their 20-year-old property management system couldn’t keep up.

When their longtime software provider announced it would no longer support their system, Fray Group knew it was time for a change. But instead of settling for an updated version of the same outdated technology, they saw an opportunity to modernize.

With two busy hotels and growing complexity across departments, the team needed a platform that could centralize operations, support integrations with key tools, and offer the flexibility to manage everything from individual bookings to large groups, all without sacrificing the quality of service they were known for.

Fray Group chose Cloudbeds not just to replace outdated software, but to centralize operations, unlock revenue opportunities, and better serve guests across both properties.

Before Cloudbeds, they relied on a patchwork of disconnected tools to manage OTAs, process group bookings, send guest surveys, and handle revenue. Cloudbeds offered something entirely different: a unified platform that could integrate it all.

I don't know if there is a system that has an API like Cloudbeds…I don't think there are many that have the amount of connections with the ability to connect to as many channels and tools as Cloudbeds.

By consolidating inventory across OTAs, GDS, CRS, and their direct booking engine, Fray Group gained full visibility and control over distribution. That increased visibility, combined with the integration of Room Price Genie for automated, demand-based pricing, has contributed to a 12–15% lift in average daily rate (ADR).

“For a market like ours that is very, very price sensitive, this is great,” shares Mario. 

Meanwhile, automated guest messaging based on reservation status and stay dates ensures timely communication and has helped maintain a strong online reputation. Fray Group’s properties consistently perform well on review platforms like Google, Expedia, and TripAdvisor.

Thanks to strong distribution and reputation management, Fray Group has maintained an impressive 74% occupancy rate year-round, placing them among the top-performing hotels in Mexico City.

“We are in the top one or two in the city in terms of occupancy percentage and we are amongst the highest average rate in the city,” Mario added.

Purpose-built for group business

At their flagship hotel in the city center, managing group reservations is a daily challenge—and a key part of the business. For Fray Group, a system’s ability to manage group blocks, arrivals, and payments was essential.

“Our main property is in the center of the city and we get a lot of group business,” Mario explained. “The Cloudbeds group module is very complete. The groups’ arrivals, which is one of the most complicated things for a hotel system to do, are handled very well.”

Thanks to the group module, Fray Group can manage bookings more efficiently and ensure every group check-in runs smoothly, even during peak periods.

Payments, permissions, and peace of mind

Cloudbeds has also transformed back-office efficiency. With Cloudbeds Payments, the team can now process virtual cards directly within the platform, something that’s become increasingly common for OTA and agency bookings.

Cloudbeds Payments is also very important because it has also worked for us to not have an external payment processor,” said Mario. “It is very easy to make the virtual card payments directly in the system. It saves time, it gives you more control… this is also the easiest way for our agency partners to pay us.

Role-based permissions ensure that team members only access what they need, improving both efficiency and security. 

Implementing a new system across two properties can be daunting, but Cloudbeds made the process smooth. The team imported historical data from their legacy platform and quickly transitioned to new workflows.

Reception staff, many of whom had used the old system for more than a decade, were initially hesitant. But within two weeks, they were fully onboard and wouldn’t want to go back.

Cloudbeds’ support chat proved invaluable during the transition, offering fast answers within minutes. For more complex needs, Fray Group had direct access to escalation support, giving them peace of mind in a fast-paced operational environment.

“Cloudbeds is built as to make everything as simple as possible, but with the level of complexity that is needed,” shares Mario. 

By consolidating systems and streamlining workflows, Cloudbeds has helped Fray Group save time across critical areas like distribution, reporting, and payments. Front desk teams are more efficient. The revenue team has better tools. Accountants no longer rely on external vendors for reporting.

With measurable results in ADR, occupancy, and operational time savings, the team estimates their return on investment at a minimum of 5:1—potentially as high as 10:1.

Looking ahead

Fray Group is preparing for its next phase of growth, with plans to add 34 rooms and bring its total inventory to nearly 206. Thanks to Cloudbeds, they’ll be able to scale confidently, without adding complexity.

For a hotel group managing multiple properties, complex bookings, and a large team, Cloudbeds has proven to be an indispensable partner. It’s more than just a PMS, it’s the engine behind their continued success.