Navigating the Stages of your Hotel PIP
First. What is a PIP?
A PIP or Property Improvement Plan is a list of updates, renovations & improvements to bring a hotel up to a specific brand’s new or existing standards. PIPs are beneficial to hotel owners because they can help improve guest satisfaction and increase RevPAR.
For hotel owners, buyers, or sellers it is essential to know when to expect PIPs and how to navigate them.
As an owner, you should know that hotel PIPs come through in cycles of approximately every 6-10 years for regular exterior hotel renovations, interior renovations & updates.
As a buyer, you should be aware of the current PIP standards for the brand you are purchasing. Knowing a brand's current standards will allow you to better negotiate the purchase of the property. If you are a buyer who is planning to rebrand/reflag the hotel that you are purchasing, having that hotel brand’s current PIP is also vital so you are aware of what updates & renovations are needed.
If you are planning to sell your hotel, you need to know that your potential buyers will most likely be comparing your property to the current PIP from that brand so you should prepare accordingly.