Change is a constant in the hotel renovation business. A transition that hotels and hoteliers often face is a change in ownership. While new ownership can be exciting, a lot of the time it requires the fulfillment of a PIP or ‘Property Improvement Plan.
A PIP will address physical aspects of the building such as:
Exterior Façade
Mechanical Systems
Plumbing
Electrical
Corridors
Guest Rooms
Meeting Rooms
Fitness Centers
Technology
Landscaping
Lighting
Parking
PIPs are meant to enhance competitiveness as well as improve guest satisfaction but can also be utilized to convert a hotel to a different brand/flag.
When purchasing a hotel, keep in mind that you will need to complete a PIP if the property you’re purchasing does not meet the standards of its current or future brand.
In this month's white paper, we will explore navigating a hotel PIP as a new hotel owner.
Getting on the Same Page
As a hotel owner, getting on the same page as the brand when preparing for a PIP will allow for a much smoother execution when it comes time to renovate. This is the time to go over any long-term goals you want to achieve during this renovation period. Making a timeline can help you understand how long each stage will take and what exactly goes into each stage.
New Hotel owners should ask themselves these questions when preparing for a PIP:
Do I want to convert this hotel?
Does the hotel need an exterior or interior renovation (or both)?
Is the current hotel brand up to standard/Does it have an updated PIP?
Getting into the details of a PIP can be exciting but making sure you are on the same page with all parties involved will allow for a much smoother experience overall.
Conduct a Thorough Walk Through
After getting a clear understanding of the PIP and making sure that all members of the renovation process have a good understanding of it, it is time to conduct a property assessment to identify areas in the hotel that require renovations or improvements.
This walkthrough should encompass all aspects of the hotel like electrical work (including adding or enhancing the technology), amenities, rooms, and public spaces, and how to comply with brand standards.
To make sure that none of the areas are overlooked, consult with an experienced hospitality expert. A lot of the time with an extra set of eyes, you can prepare your PIP with ease knowing everything has been reviewed.
Conducting a property assessment walk-through with a contractor experienced in hotel renovations can also better your chances of finding and fixing unexpected issues such as water damages early so your renovation can stay on schedule.
Prioritize Upgrades & Engaging with the Stakeholders
Once the walkthrough and property assessment are finished, it is time to prioritize what investments you want to make in the hotel.
The ideal results from the renovation would include smooth operation, satisfied guests, generated revenue, and alignment with the goals you have put into place since the beginning.
Some upgrades may be necessary for safety reasons while others may be used to enhance the overall guest experience. Balance your short-term needs with your long-term needs and then decide what is necessary to add to your renovation.
Check out our guide: Negotiating your hotels PIP
Because many different parties go into managing the PIP, it is key to keep all stakeholders on the same page and aligned with the goals and timeline in place.
This can include the hotel staff/management, contractors, and suppliers.
There are many hands on deck, and establishing a strong sense of communication from the beginning will help address challenges or concerns that any member of the team might have while also fixing problems quickly and promptly that may arise.
Adapting to Trends
Because the hospitality industry is always changing, new trends are constantly evolving, making guest preferences change at the drop of a dime.
When undergoing a change in ownership and implementing a PIP, it is essential to stay on top of all of the emerging trends and find out what your guests are looking for.
Staying up to date on the competition and current trends will give you a better idea of how to incorporate new and modern amenities.
Catering to niche markets like extended stay, wellness travel, and sustainability can make your newly renovated hotel stand out among the competition.
Some emerging trends that you can look out for when preparing your PIP include:
Remote workspaces
In-room kitchenette
Mobile apps are used for check-in/out, room service, and in-hotel communication
Upgrades to Spa facilities/fitness centers
New eye catching light fixtures
Sustainable Building Materials/Recycling
Conclusion
A change in hotel ownership AND executing a property improvement plan can be tedious work and require in-depth planning and decision-making.
Having a firm understanding of what improvements will be made, conducting a thorough walk-through, prioritizing investments, engaging with stakeholders, and adapting to trends, will allow you to easily and successfully navigate the transition of being a new hotel owner while also enhancing your competitiveness and improving guest satisfaction.
Completing these steps will lead you to your next successful hotel purchase and PIP fulfillment.