Although hotel renovations and PIP fulfillments may be tedious at times, they can also lead to amazing results such as increased return on investment or (ROI).
Knowing how to take advantage of the opportunities that renovating your hotel presents can help increase not only the competitiveness of your property but also your ROI.
In this month's white paper we’ve compiled a list of 10 tips that you can use to maximize the return on investment (ROI) during your next hotel renovation/PIP fulfillment.
1. Conduct thorough market research
Before beginning renovations, it is important to conduct research within your market to ensure you make the right decisions regarding your hotel remodel. Getting to know your customers’ preferences, current hotel trends, and what your competitors are offering can give you the chance to make your hotel stand out.
Hotels often connect with their target audience/guests through feedback and surveys after their stay. Conducting surveys to ask guests about their experience and preferences gives the hotel a better understanding of where they can improve and how they can align with guests' needs.
Aside from your own customer data, take a look at what is trending in hotels nationwide. What design aesthetics, technology upgrades, etc. are being implemented in competing hotels as well as hotels under the same flag as yours? Knowing what the trends are can give you an idea of what to expect in your next PIP.
Doing research and getting insight into this information will help you and your team make informed decisions when it comes time to create the budget and timeline.
2. Decide what’s best: Renovate or Rebrand
Deciding to renovate or rebrand your hotel is a significant choice that will end up impacting the future of your business's success. There are many factors to consider upon making the decision.
Does your hotel have a PIP in place?
What's required on the PIP can help you determine whether it's best to renovate or rebrand.
If the PIP that is provided to you is above your budget, this might be a reason to rebrand to a more affordable flag. If you have no interest in rebranding, it’s important to remember that you can sometimes negotiate a PIP to fit within your budget.
Check out our blog here on negotiating your PIP: https://www.amerailsys.com/post/negotiating-your-hotel-pip
Budget is a big part of the decision but so are the guests.
Rebranding can also be a viable option if you feel that your target audience does not resonate with your property's current brand anymore.
If rebranding does not fit your needs, renovating your hotel will provide you with a more updated and on trend version of what you had before attracting guests new and old.
Learn about the benefits of renovating your hotel here: https://www.amerailsys.com/post/5-benefits-of-renovating-your-hotel
3. Set a clear timeline & budget
Creating a hotel renovation timeline helps establish your goals from the start.
How long a hotel renovation takes depends on the scope of work and the size of the project. In 2024, a hotel renovation can take anywhere from a few months to a year.
Setting soft deadlines you want to reach will give you specific milestones to work towards within each phase of the timeline. It is important to allow for flexibility and buffer time in case certain phases don’t go as planned or take longer.
Read more about hotel renovation timelines here: https://www.amerailsys.com/post/hotel-renovation-timeline-2024
Setting a realistic budget well before renovating will help you when prioritizing your upgrades. Prioritize areas that need renovated the most and work from there. It may be beneficial to allocate more of your budget to high-impact areas to have the most impact on guest experience and revenue.
Want to maximize your next hotel renovation budget? Check out this blog: https://www.amerailsys.com/post/maximizing-your-hotel-renovation-budget-5-cost-saving-tips-and-strategies
Creating and managing a detailed timeline and budget sets your team up for success from the beginning. Because of the highly competitive market, being organized with your timeline and budget from start to finish keeps everyone on the same page while helping you maximize your ROI.
4. Meet with Professionals
Engaging with experienced professionals in the industry before, during, and after the renovation can ensure high-quality results. Contractors who specialize in hotel renovations can help you understand your PIP and fulfill it as efficiently as possible.
Working with professionals specialized in hotel renovations gives you a better chance of avoiding costly mistakes while ensuring that the renovation aligns with both the brand and the hotel's vision.
Working with a hotel renovation company like Amerail Systems during your next hotel renovation can help you achieve great results in the most efficient way possible.
Looking to start your next renovation? Contact the A-team Today: https://www.amerailsys.com/contact
5. Upgrade technology
Staying up to date on technology trends is a great way to maximize ROI with your next hotel renovation.
Travelers are always seeking the next best thing when it comes to hotel technology.
This can include:
Hotel Apps
Mobile Check-in/Check-out
High-Speed Internet Connection
Furniture with Charging Ports
Smart Rooms - Custom Lighting & Mobile Temperature Controls
Smart TVs with Streaming Services
Mobile Keys (room key on a smartphone)
Robot Butlers
A.I. + more!
Not only does technology greatly elevate guest experience, but it can also improve hotel operations. Staff members can greatly benefit from hotel technology like mobile check-in and check-out. This allows the staff to focus on making sure guests are happy upon arrival, during their stay, and after check-in.
6. Enhance curb appeal
A guest's first impression of the hotel happens as soon as they lay eyes on the property. This can include pulling into the parking lot or seeing photos on a website or social media.
Because first impressions matter so much, it is important to keep up with improving and renovating the exterior. Even making low-cost changes like painting the exterior, getting new signage, and keeping up to date with landscaping can increase bookings for those passing by looking for lodgings. These small changes can show a very high return because of the low cost.
If your hotel has a PIP in place, it is important to ensure you are meeting brand standards when renovating.
7. Focus on common areas
If you plan on renovating/redesigning the interior of your hotel, it is important to put a lot of your focus on areas including the lobby, guest rooms, dining spaces, and lounges. Refreshing these areas shows your guests that you care about their experience and want them to enjoy their stay.
There are many easy ways you can refresh your common areas more frequently including:
Updated lighting
LED bulbs and decorative light fixtures can brighten up the space while also reducing energy costs.
A small change in the light fixtures can make a big difference while giving it a modern look.
Rearranging furniture
Changing the arrangement of the furniture around can allow the space to feel refreshed while also making it more functional.
Using multi-functional furniture that serves multiple purposes can be a helpful addition.
Decluttering
Remove any old or unnecessary items that no longer align with your vision allowing your decor to be more streamlined while also creating more open spaces.
Paint/Wallpaper
Painting and adding wallpaper to one wall can create a focal point for the room.
This adds depth without fully repainting the room.
Doing things like changing the lighting and rearranging furniture can help short term, but to make sure your hotel is in the best possible condition, plan to renovate every few years.
8. Plan for construction
If not managed correctly, renovations can sometimes cause tension between hotel guests and staff. Make sure to keep an open line of communication with all guests, letting them know that renovations will be taking place during their stay.
Putting up signs around the hotel and sharing the renovation process from before to during on social media and your website can give guests a heads-up if construction will be taking place during their stay.
Ensure that their staff is up to date on knowledge about the hotel in case guests have questions about the renovation during any part of the day. It is also important to implement quiet hours for construction, and letting your guests know when renovations will be starting and stopping throughout the day. Scheduling renovations during your slow season will minimize the impact on your average occupancy rate.
9. Stay up to date with marketing & social media
A renovation is the perfect time to refresh your social media and work on your marketing efforts. Creating a voice for your hotel and updating the branding to reflect the new look can give new and old guests a look into what they should expect the next time they want to visit. If your hotel has an interior or exterior renovation, consider hiring a professional photographer to capture the updates that have been made. Use these photos across social platforms (including your website) to showcase the renovations and overall attract more guests.
Read our Ultimate Hotel Social Media Guide here: https://www.amerailsys.com/post/ultimate-hotel-social-media-guide
10. Seek guest feedback
Engage with guests before, during and after the renovation to gather any feedback or suggestions they may have. Understanding the needs of your guests helps pinpoint improvements that you know resonate with your audience. Before renovations and after renovations are complete, ask guests to fill out survey questions about their experience to gauge if the overall guest experience has improved. Asking guests to fill out reviews online can help promote your hotel to new guests and maximize your hotel renovation ROI.
Conclusion
Strategically planning and executing a hotel renovation can help to maximize your ROI. By conducting thorough research, setting a timeline and budget, and upgrading amenities, you and your staff can create a welcoming and modern environment that attracts guests and increases revenue. Guests should be the main focus of your renovation. As long as they are happy you will be too.
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