The hospitality industry highly relies on fixed assets like furniture, machinery, interiors, cabinets, and more. Under general circumstances, a hotel attains an average rate of occupancy. A hotel is good to go for the first 15 years if no significant hazard has taken place in the hotel premises. If the hotel was running below 75% occupancy, the hotel can opt for the general refurbishment of rooms and can revamp the F&B to keep up with the trends. Common areas like the lobby, hotel rooms, furniture can be taken care of after 15 years.
Transforming your hotel interiors is a highly expensive expenditure to keep up with. Starwood Hotels and Resorts, a leading hotel chain in the USA, has invested more than 400 million to revamp their New York portfolio hotels.
Most renovations and revamps take place when hotels get new ownership, take over, acquisition with another hotel chain brand, or gets a new brand identity, which is further accommodated with the remodeling of the original brand.
If a hotel is running over 75% occupancy and is doing great in terms of revenue, it can change its interior between 7 to 10 years, and go for significant maintenance round to keep the furniture charged up, walls painted, and repair other damages. Renovations include changing mattresses, seatings, cupboards, cases, bathroom tiles, and fixtures, maintenance of heating and cooling devices, as well as cleaning the carpeting and tiles.
If your hotel is facing revenue losses due to look and feel, it's high time to pull the trigger and revamp the hotel's brand. Many hotel chains hire external auditors and inspectors to conduct quality assurance, inspections, and provide a report regarding the renovation needs and maintain a level of standard in the market.
Purpose of Renovating There's a clear difference between renovating and reinventing. Are you targeting a ground-up transformation of your identity, or are you changing for the sake of it?
New technology trends and customer demands are transforming annually, and it's essential to understand that you don't lose the core identity of your hotel's brand. With the uncertainty of guests arriving, the market has become very competitive in terms of hotel renovation. The whole identity of the hotel's brand is on a stake while choosing a renovation.
When the renovation takes place, the hotel should attempt to make revenue by knowing how much of the hotel is still usable at a given time of restoration. You can have a phase-based approach, in which the partial part of the hotel can be used when the other half of renovation takes place.
The contract company becomes the front runner for interior designing and supplying the furniture during the construction period. They manage the time spent on the renovation and provide you a project plan unless you can plan for how many days the hotel will be open. The location of the hotel plays an essential role in attracting more customers and increase the overall revenue. However, taking a decision needs careful planning, a team of operators and contractors to make the journey more efficient. The relationship between the hotel contractor and supplier thrives innovation and can take lesser time to renovate. It can also help you to improve the revenue per room.