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  • Amerail Systems

Negotiating your Hotel PIP

Updated: Jan 27, 2022

First. What is a PIP?

A PIP or Property Improvement Plan is a list of renovations and improvements meant to bring a hotel up to a specific brand’s new or existing standards.

A successful PIP is fulfilled by an experienced hotel renovation company like Amerail Systems. Hotel renovation companies like Amerail can help you increase market share and RevPAR while simultaneously beating out the competition and increasing guest satisfaction.

Elements of a PIP

  • Plumbing and electrical systems

  • Mechanical systems

  • Guest rooms and corridors

  • Elevators and stairways

  • Meeting rooms

  • Fitness centers/swimming pools

  • Security, safety, and communications systems

  • Food and drink facilities

  • Landscaping

  • Interior and exterior lighting

  • Parking

*It’s most likely that your PIP will only include some of the above.*

Knowing What to Negotiate

Many hoteliers when receiving a PIP, negotiate on requirements. This process is important but be sure to avoid doing minimal work where it matters most.

Avoid this common mistake!

You may not realize it but your common areas and your exterior are some of the most crucial parts of your hotel. They are the first thing guests see when arriving and they will remember that first impression.

Renovating your exterior is meant to enhance your curb appeal. Guests are likely to choose a hotel with an updated exterior because it looks newer. So when your curb appeal is enhanced, you have a higher chance of a guest choosing your hotel over any competitors in the area.

Whether you're a hotel owner, buyer or seller, you'll benefit from our Negotiating your PIP Guide.

Amerail Systems Guide to Negotiate your hotel pip

Download your own copy of our free guide by subscribing to our monthly newsletter below or continue reading!

1. Review your PIP with Professionals

Your first step is to get in touch with a general contractor to review your PIP so you can completely understand what is being asked of you. An experienced professional will be able to give you an idea of how much your improvements will cost.

Pro Tip: Contact Amerail Systems for help when reviewing/fulfilling your Property Improvement Plan (PIP). With over 35 years of experience providing hotels with value-engineered PIP fulfillment, we’re best equipped to provide you with a successful PIP.

2. Negotiating Materials & Finishes

Negotiate on items in your PIP such as materials and finishes to save money. Elements like flooring and wall finishes can typically vary in price. Reviewing these items with your contractor will allow you to find alternatives that could save help you save on costs.

Pro Tip: Contact Amerail Systems to fulfill your PIP. As your contractors, Amerail Systems will always value-engineer your PIP fulfillment so you can get the best renovation for the most reasonable price.

3. Remove Long-Term Maintenance Items

how to negotiate a hotel pip picture of roof

One of the most common points of negotiation in a PIP is long-term maintenance items.

Long-term maintenance items include items such as water heaters and roof replacements. While these things will need to be replaced eventually, you may not need to address them by the date required on your PIP.

To negotiate this, you can amend that you will finance the replacements from a future capital budget.

4. Discuss Interruptions

As you may know, there are often interruptions that occur during a renovation. Things like weather, national crisis, occupancy, etc. can create time-consuming delays in fulfilling your PIP.

To avoid being blindsided by any penalties, it’s important to speak with your franchiser & make sure you’re on the same page regarding potential setbacks.

Knowing what your potential setbacks could be beforehand can also be beneficial to you.

Pro Tip: Check out Amerail Systems Guide to Navigating the stages of your Hotel PIP to be best prepared for your PIP.

5. Choose Your Hotel Renovation Team

Hotel Renovation Hotel PIP Negotiating Team Amerail Systems
Amerail Systems Christmas Party/Ugly Sweater Competition 2021

Avoid choosing the wrong team by doing your own research on who is best fit to fulfill your hotels PIP.

When researching construction/contracting companies, make sure to look for a company that is specialized in hotel renovations and PIP fulfillment.

Renovators with experience in the hospitality industry will be able to provide you with quick, value-engineered solutions and help your hotel achieve the best profit on your PIP.

Pro Tip: For help with choosing the right renovation company, check out Amerail Systems article on Choosing the Right Contractor for your Hotel Renovation.

Or save time by contacting the Hotel PIP Fulfillment experts at Amerail Systems today! Contact Us


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