If you were in any doubt about whether hotel refurbishments can have a short- and long-term positive impact on the hotel's revenue, profits and asset value, this well-written piece by Laurel A. Keller and John Burke of Hotel & Leisure Advisors helps crystallise the high levels of gains that can be made. Even replacing key items of furniture in the bedrooms and elsewhere in the hotel can help towards this outcome...
from Laurel A. Keller and John Burke of Hotel & Leisure Advisors, courtesy of hospitalitynet.org
The Financial Impact of Hotel Renovations
By Laurel A. Keller , Vice President of Hotel & Leisure Advisors and John Burke, Senior Associate at Hotel & Leisure Advisors
The story is a familiar one. A hotel that formerly outperformed its competitive set is now struggling to maintain market position. Rate and occupancy penetration indexes are headed in the wrong direction, and online reviews regularly contain comments such as "needs a refresh" or "feels dated."
Even if the hotel's brand hasn't issued a mandatory property-improvement plan, completing a renovation may be financially worthwhile.
Signs your hotel needs a renovation
While several factors need to be considered prior to planning a renovation, the following are signs that it may be time: