Property Improvement Plans (PIPs) play a crucial role in ensuring your hotel meets brand standards and stays competitive as the hospitality industry evolves. While PIPs may seem daunting, a strategic approach can help you navigate the process with confidence. This guide provides the steps necessary to achieve PIP compliance in 2025 while maintaining profitability and exceeding guest expectations.
10 Steps to Achieve PIP Compliance for Hotels:
1. Understand the Scope of Your PIP
The first step in tackling a PIP is thoroughly understanding its scope and requirements.
Review the PIP Document: Carefully analyze the details provided by the franchisor, highlighting deadlines, mandatory upgrades, and key renovation areas (e.g., guest rooms, public spaces, or exteriors).
Clarify Expectations: Schedule a meeting with your franchisor to address any ambiguities. Understanding the brand standards and flexibility around materials or timelines will help you avoid costly misunderstandings.
Prioritize Tasks: Identify immediate needs versus longer-term upgrades to allocate resources efficiently.
2. Build a Strong Team
The team you build and your communication with them is critical to the success of any PIP project.
Internal Stakeholders: Involve key players like the General Manager, Sales & Events Manager, Social Media Team, Maintenance Manager, and Operations Team to align the project with daily operations and avoid scheduling conflicts.
External Experts: Partner with experienced designers, contractors, project managers, and suppliers who specialize in hotel renovations and brand compliance.
PIP Specialists: Specialized hotel contractors can help you bridge the gap between you and the franchisor, ensuring all standards are met efficiently.
Leverage Approved Suppliers: Work with franchisor-recommended vendors to streamline approvals and maintain quality. - this is typically managed by your design/contracting team who have the expertise necessary to provide you with value-engineered solutions to give you the best ROI.
At Amerail Systems, our clients receive not only a beautiful renovation that will increase their property value but also a team of experienced hotel renovators who are experts in providing value-engineered solutions for hotel owners.
With a design-build hotel renovation or PIP fulfillment through Amerail Systems you can avoid the hassle of having to go between multiple parties as we provide our clients with everything they need to achieve PIP compliance from start to finish including:
PIP & Site Evaluation
Value-Engineered Solutions
Interior & Exterior Design-Build Hotel Renovations
Contracting Services
Guest-Friendly Crews
Expert Project Managers
On-Site Supervisors
& More
3. Conduct a Comprehensive Property Assessment
A detailed property inspection will identify gaps and opportunities for improvement. Typically your contractor will conduct an onsite evaluation and will be able to find signs of these issues. Finding these issues and resolving before your PIP can help ensure your renovation will be completed in time and on budget.
Assess Compliance Gaps: Evaluate your property’s current condition against the PIP requirements, focusing on critical areas like guest rooms, sustainability, safety features, ADA compliance, and common areas.
Address Deferred Maintenance: Find/resolve existing issues (e.g., leaks, outdated systems) to avoid complications during renovations.
Uncover Hidden Needs: Identify structural or system deficiencies that could impact timelines and costs.
One of the most common unforeseen costs/reasons for delay in a hotel renovation is water damage. If this is caught early you may avoid costly repairs and delays in your renovation.
Check out our guide:Â Everything that can go wrong during a hotel renovation & how to prepare
4. Develop a Realistic Budget
A well-planned budget ensures financial stability throughout the renovation process. Typically hotel owners will include an estimated amount for renovations in their CapEx budgets.
Include All Costs: Account for hard costs (construction, materials, labor) and soft costs (permits, design fees, and project management).
Set Aside a Contingency Fund: Allocate 10-25% of your budget for unexpected expenses.
Explore Financing Options: Consider SBA loans, equipment financing, or franchisor partnerships to secure additional funds if needed.
Check out our guides: Choosing the Best Loan for your Hotel Renovation & 2025 Guide to CapEx Budgeting
5. Plan to Minimize Guest Impact
Renovations can disrupt the guest experience if not scheduled correctly, so having a plan to minimize inconvenience is essential.Â
When working with Amerail Systems, our team works with yours to maximize renovations and minimize guest disturbances. Our guest-friendly crews work at times convenient for you and your guests.
Plan Strategically: Schedule renovations during off-peak seasons and create a phased schedule to keep parts of the property operational.
Communicate Transparently: Notify guests about ongoing renovations at booking, check-in, and through signage. Offer perks or discounts for stays during the renovation period.
Empower Your Staff: Train your team to handle guest concerns proactively during this time.
Check out our guide: https://www.amerailsys.com/post/5-tips-on-keeping-guests-happy-during-hotel-renovationsÂ
6. Negotiate
After receiving your hotel PIP, completing an evaluation of it, and prioritizing the requirements you can begin to negotiate with your franchisor on the items that are least necessary to see if you can come up with a mutually beneficial solution.
This process may seem daunting, but working with an experienced hotel renovator can help expedite the negotiations.
When working with Amerail Systems, our expertise and long-standing relationships with suppliers and brands makes it easier and faster for us to negotiate items on your PIP for you.
Review your PIP: Nail down the total cost of your PIP and prioritize items. Working with an experienced hotel contractor will help expedite this step.
Negotiate: Your contractor can help find areas in your PIP that can be negotiated or postponed such as materials, finishes, long-term maintenance items, and more.
Maintain Transparency: Sometimes interruptions happen such as weather, occupancy rates,etc., it’s important to discuss possible interruptions with your franchisor to make sure you are both on the same page regarding potential setbacks. Keep the franchisor informed of progress and document milestones to build trust.
7. Stay on Schedule
When fulfilling a hotel PIP, staying on schedule is critical to avoiding penalties and maintaining brand relationships. In the previous step we mentioned that maintaining transparency with your brand was essential. This step should help you here by ensuring that your brand is aware of any potential setbacks that could occur. But as always, working with an experienced hotel renovator can help you stay on track.Â
At Amerail Systems, our team of project managers, site supervisors, and more will not only help you transform your property within budget, but will also help ensure that renovations stay on track.
Before beginning the renovation process our team will work with yours to create a schedule that minimizes guest disruptions and keeps your project on track.
Use Project Management Tools: Track progress, set milestones, and address delays promptly.
Conduct Regular Check-Ins: Schedule walkthroughs with contractors to ensure work aligns with the PIP requirements.
Be Flexible: Have a contingency plan in place for unexpected delays and adapt quickly to keep the project moving forward.
8. Document the Process
Documentation is not only crucial for final inspections but also invaluable for future PIP negotiations and operational audits.
Keep Records: Save invoices, receipts, contracts, and approvals.
Take Photos: Capture before-and-after images to showcase your upgrades and improvements. These photos will help demonstrate your compliances and are also necessary for marketing efforts.
Log Communication: Maintain records of conversations and agreements with the franchisor and contractors.
9. Prepare for the Final Inspection
The final inspection is a critical step in achieving PIP compliance. A smooth inspection process depends on thorough preparation and attention to detail.
Conduct a Pre-Inspection: Walk through the property with your team to address last-minute issues.
Verify Quality: Confirm that all work meets the required standards and specifications.
Compile Documents: Present records and photos to demonstrate compliance.
10. Celebrate and Promote Your Renovations
Once your renovations are complete and PIP compliance is achieved, it’s time to celebrate your success and promote the upgrades to attract new and returning guests.
Share the News: Announce your renovations through press releases, social media, and email campaigns. At Amerail Systems we regularly promote and recommend the hotels we renovate through all marketing platforms.
Showcase Benefits: Utilize your front desk, social media, emails, and your website to emphasize how the updates enhance the guest experience, from upgraded aesthetics & modernized amenities to eco-friendly features.
How Amerail Systems Can Help
Achieving PIP compliance for your hotel can be complex, but Amerail Systems simplifies the process for you.Â
With 40 years of experience in hotel renovations, we offer:
Turnkey Solutions: From planning to final inspection, we manage every aspect of your PIP.
Expert Negotiations: We work with your franchisor to find cost-effective solutions that meet brand standards.
Quality Assurance: Our skilled team ensures your property is compliant, modernized, and built to last.
Guest-Focused Approach: We minimize disruptions to your operations, keeping your guests satisfied throughout the process.
Achieving PIP compliance for 2025 doesn’t have to be overwhelming.Â
Trust Amerail Systems to deliver a seamless renovation experience that enhances your property’s appeal and sets you up for long-term success.Â
Contact us today to start your journey toward a fully compliant, guest-ready property.