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Apaleo and THE FLAG bring agentic AI into live hotel operations with autonomous task creation

  • 10minhotel
  • 23 February 2026
  • 4 minute read
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MUNICH, 23 February 2026 – Apaleo, the API-first property management platform, and THE FLAG, a group comprising hotels, serviced apartments, student and young professional accommodation, and senior living, today announced progress of their AI Trace Agent that automatically converts guest requests inside reservation comments into operational tasks for hotel teams.

The Trace Agent identifies needs such as baby cots, extra beds, birthdays and other special requests from guest comments, then creates the relevant tasks automatically in Sweeply, THE FLAG’s housekeeping tool, removing the need for staff to manually transfer information between systems.

The agent is live at THE FLAG Zürich, a 101-room hotel and serviced apartment property that pilots new technology for the group. It currently generates around 30 tasks per day without manual input, saving an estimated 3.5 hours per week in direct task creation time, with additional time saved by reducing back-and-forth between reception and housekeeping.

While 3.5 hours per week already represents meaningful operational efficiency, the greater impact lies in what this enables next. Automating task creation lays the groundwork for deeper agent-to-agent coordination, where requests can be triaged, assigned and ultimately resolved with minimal human intervention. As these systems connect, the effect becomes visible not only in operational time saved, but in measurable gains to both the guest experience and the bottom line.

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The Trace Agent was built through Apaleo’s Agent Factory in collaboration with Sweeply. Within weeks, Sweeply introduced dedicated API endpoints, enabling the agent to securely create and manage tasks. A prototype was running within a month, followed by further iterations, before going live in production after two and a half months.

The deployment reflects a broader shift in the application of AI in hospitality, expanding beyond generative AI. While Large Language Models (LLMs) can interpret unstructured comments, the real value comes when systems can take action. By connecting those models to open, well-structured APIs, an AI agent can execute tasks directly within the hotel’s existing workflow, moving agentic AI from concept to operational reality.

Felix Bauch, General Manager of THE FLAG Zürich, said: “We’re very pleased with the outcomes of Trace Agent. This has been a strong collaboration with Apaleo and Sweeply. Apaleo’s API-first platform made it easy to integrate quickly with the systems we already use and iterate fast on real operational workflows. The team identified a clear day-to-day time drain in handling guest requests and used AI-driven automation to reduce manual follow-ups and handoffs, creating a workflow that wasn’t available off the shelf.

When requests like baby cots or extra beds are automatically captured and converted into actionable tasks, teams spend less time clarifying details and more time delivering service. By reducing repetitive work and friction between departments, we can support a better employee experience and ultimately a more consistent guest experience.”

Ulrich Pillau, CEO and Founder at Apaleo, said: “Everyone is talking about agentic AI, but hotels need practical examples of how it works in day-to-day operations. THE FLAG’s Trace Agent demonstrates how agentic AI applications can improve coordination across departments, creating autonomous hotel operations. We’re excited to continue working with forward-thinking hoteliers to identify precise opportunities where AI can improve operations and co-create AI agents with them.

THE FLAG plans to roll out the Trace Agent across its other properties and develop additional agents for other operational use cases. Future enhancements are expected to let agents book services directly in connected systems, notify guests automatically once requests are confirmed, and support room allocation based on guest preferences.

About Apaleo

Apaleo is the world’s most open API-first property management platform for hospitality businesses. Powering over 2,000 properties in more than 30 countries, Apaleo streamlines operations and elevates guest experiences across hotels, vacation rentals, serviced apartments, and residential living. The modular core infrastructure allows operators to fully customise their tech stack and automate workflows without vendor lock-in. It replaces single-vendor suites with best-of-breed technology. Apaleo’s Agent Hub–the first-ever AI agent marketplace for hospitality–helps operators adopt autonomous agents to improve business performance. Customers include citizenM, easyHotel, limehome, Korner Hotels, Miiro Hotels, and Numa. Apaleo is Phocuswright’s 2025 EMEA Travel Innovation Award winner. For more, visit apaleo.com

About THE FLAG

THE FLAG Group is an innovative family-owned real estate company focused on high-quality residential and hospitality concepts in Europe and North America. With a portfolio of currently 26 properties in Germany, Spain, Switzerland, and the USA, and over 3,000 high-quality apartments, THE FLAG develops, manages, and operates specialised housing solutions for different life stages: from apartments for young professionals and students to stylish hotel and apartment solutions for both short- and long-term stays for business travellers, as well as innovative senior living – individual service-oriented housing for seniors.

Characterised by a high standard of design, sustainable construction methods, and a strong service-oriented mindset, THE FLAG creates spaces that combine comfort, flexibility, and community.

In addition, THE FLAG addresses the growing demand for wellbeing and health-conscious living by offering innovative wellbeing and longevity programmes, which were first introduced at the Spanish location in Estepona near Marbella. The company’s own HOTEL & STAY WELL concept combines the latest insights from the fields of health, regeneration, and prevention with tailor-made offerings designed to help guests maintain their physical and mental vitality. Whether through special nutrition plans, fitness sessions, or regenerative treatments, THE FLAG relies on a holistic approach that places individual needs at the forefront.

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