Dual-brand hotels are rapidly gaining popularity in the hospitality industry. They allow developers, owners, and guests to maximize space and cater to different market segments under one roof, boosting occupancy rates and revenue. For example, combining a long-term stay option with a short-term stay option allows owners to cater to diverse guest needs under one roof.
However, this model also presents unique challenges, particularly when it comes to renovations and Property Improvement Plans (PIPs). Renovating a dual-brand property requires a delicate balance between maintaining each brand’s distinct identity while ensuring a seamless guest experience. Hoteliers must navigate shared spaces that meet the expectations of two different types of travelers while also adhering to each brand's specific standards.
These projects often involve close collaboration between the two brands, their corporate teams, and the contractor. Renovations can include upgrades to shared amenities, as well as distinct brand-specific features like room furnishings or full exterior remodels.
We spoke with our renovation experts to answer key questions that can help you navigate your dual-brand hotel renovation.
How can hotels ensure minimal disruption to guests during a dual-brand hotel renovation, and what role does guest feedback play in planning the process?
R.J. - Sales Executive: Have Amerail perform the upgrade! Ha-ha. But in all seriousness, proper planning and lots of communication with the Project Management team are key. Setting realistic expectations for both management and guests helps mitigate frustration.
N.W. - Sales Executive: Hiring the right general contractor is critical. A company like Amerail Systems Hotel Renovations treats the asset as if it were their own. We’re a relationship-first organization, and that translates to best-in-class renovations. Guest feedback is crucial for brands to study, as their design choices will influence profitability in the future. Most of my conversations with clients revolve around noise and accessibility. Flexibility with schedules, like accommodating flight crews who sleep during the day, is part of the plan.
What is the best way hotel owners can effectively communicate renovation plans to guests and stakeholders of both brands while managing the complexities of aligning PIP goals?
R.J. - Sales Executive: Most hotels have an online presence, either through their own website or a broker. That information needs to be readily available so guests can be aware. A simple board stationed in the lobby, notifying guests of the proposed or in-process renovations, is also effective.
N.W. - Sales Executive: Signage and staff are key. Properly informing guests about renovations ensures minimal disruption to their experience. Brand standards are set by the parent company for each individual brand, typically falling under renovation cycles every seven years. We help streamline renovations and establish a consistent experience for consumers nationwide.
How do timelines and PIP negotiations differ in a dual-brand hotel renovation, and what adjustments do you make in your sales approach?
N.W. - Sales Executive: Negotiations can take months, so it’s important to build in extra time to complete the scope of work. Dual-brand hotels, though housed under one contract, take more time because production needs to be divided between the two brands.
R.J. - Sales Executive: Dual-brand hotels have larger room counts, so construction timelines are naturally longer. We consult with ownership, the AD, and the PM team to decide whether to tackle both brands at once or finish one before moving to the other. This decision often depends on FF&E availability and other finishes.
What are the key factors to consider when selecting contractors and designers for a dual-brand hotel renovation?
S.L. - Director of Construction: Select contractors and designers with strong experience working with both brands. Consider a design-build contract.
N.W. - Sales Executive: Experience matters. Find the company that is right for you. If you have a lot of work coming up and need a respectable company that can get them done on time and on budget, you call Amerail Systems Hotel Renovations.
What are the key challenges in renovating a dual-brand hotel compared to a single-brand property, and how can hotel owners maximize the use of shared spaces during renovations?
N.W. - Sales Executive: Dual-brand assets often have two separate guestroom buildings, so you can’t flow directly from one into the next without downtime. Shared public spaces can also pose challenges in terms of brand approval and budgetary constraints. Planning ahead is key. You’re collecting income from two hotels’ guestrooms while utilizing one public space. This cuts down costs and maximizes your ROI for each asset.
L.M. - Drafter: The shared space should be brand-neutral as far as color and design theme so that the space appeals to all clients. If one hotel is slightly higher-end, you may want to ensure that your common areas are designed to meet their expectations while giving your other guests an upgraded common area. Ultimately, you want the space to be comfortable for all your customers throughout their stay at either hotel brand.
What design considerations should be made to maintain distinct brand identities in shared areas?
N.W. - Sales Executive: You want a design that appeals to both brands' demographics. If one brand is more high-end than the other, it’s important to choose finishes that meet the expectations of both. A high-end brand’s guests shouldn’t feel like their experience is being downgraded by the shared space.
What are the most cost-effective strategies for upgrading/renovating both brands within a dual-brand hotel?
N.W. - Sales Executive: There are certainly tricks of the trade that allow a good GC to perform at a much higher level than others. A company like Amerail Systems can handle multiple assets nationwide, which provides leverage and cost savings. Ultimately, it boils down to the customer’s needs and how we can meet them.
What are the potential ROI benefits of renovating a dual-brand hotel?
N.W. - Sales Executive: You can market to two separate demographics from one central location, which can be highly lucrative for investors. Dual-brand hotels are efficient and allow for higher occupancy rates and broader appeal.
What are some key design challenges you might face when renovating shared spaces in a dual-brand hotel, and how do you ensure these areas cater to the needs of both brands?
N.W. - Sales Executive: Colors and materials can differ significantly between brands, so the challenge is finding finishes that align with both. It’s about striking a balance between the two brands' identities without compromising the overall aesthetic or guest experience.
L.M. - Drafter: The design should be a neutral color scheme that does not closely resemble either hotel brand. They may have to decide what amenities they want to provide in this neutral space, such as breakfast services or gathering spaces. The hotel that has a higher star rating will have a little more say in the final design and services provided. In the end, a space that is clean and provides an appealing environment for both customers should be the outcome. This way, customers for both brands, whether it’s a 2-star or 4-star hotel, are satisfied with their stay.
What are the common pitfalls to avoid when renovating a dual-brand hotel?
N.W. - Sales Executive: Give yourself plenty of time and hire the right contractor. Proper planning on the front end is essential to avoid budgetary issues and construction delays.
How do you prioritize vendor selection to meet the diverse needs of a dual-brand hotel renovation while ensuring quality and cost-effectiveness?
M.M. - Director of Preconstruction: I would evaluate the vendors based on their track record, price, and ability to collaborate, ensuring quality and sustainability are maintained throughout the process.
N.W. - Sales Executive: We go through a very extensive process, then allow ownership to decide. If they don’t have one, we will use a partner we trust in the industry.
Can you explain how you handle discrepancies between brand standards when purchasing materials for shared spaces in a dual-brand hotel?
M.M. - Director of Preconstruction: We would review both brands’ standards and compare the similarities and differences. Then we would prioritize materials that meet both brands' aesthetic and functional requirements while ensuring compliance with quality and budget constraints, allowing for flexibility in design that respects each brand's identity.
What challenges might you encounter when coordinating the procurement of materials and equipment for dual-brand renovations, and how could you overcome them?
M.M. - Director of Preconstruction: Some challenges can be conflicting brand standards and requirements, as well as managing different lead times from suppliers. To overcome these, I would facilitate regular meetings with both brand teams to ensure alignment, prioritize flexible materials that meet both brands' needs, and maintain close communication with suppliers to synchronize delivery schedules effectively.
What steps can you take to ensure that lead times for critical materials and equipment align with the renovation schedule for both brands?
M.M. - Director of Preconstruction: I start by creating a detailed timeline that highlights key milestones. Then, I would work closely with suppliers to confirm availability and delivery dates, placing orders as early as possible and maintaining regular communication to track progress and address any potential delays promptly.
What best practices could you follow to mitigate the risks of supply chain disruptions during the procurement phase of a dual-brand hotel renovation?
M.M. - Director of Preconstruction: Implementing best practices such as diversifying suppliers to avoid reliance on a single source, maintaining strong relationships with vendors for better communication, and ordering critical materials early. Additionally, I would continuously monitor brand standards and have contingency plans in place to adapt to any unforeseen issues.
In conclusion, navigating dual-brand hotel renovations demands careful planning, strategic communication, and collaboration among all stakeholders. As this innovative model grows in popularity, hotel operators must prioritize guest experience while respecting each brand's unique identity. Insights from industry experts underscore the necessity of flexibility and thorough preparation to minimize disruptions during the renovation process.
Finding a contractor capable of effective communication is essential; they play a crucial role in aligning both brands’ standards and ensuring a seamless experience. By maximizing shared spaces and coordinating design elements, hotel owners can enhance their properties and boost market appeal. With the right strategies and partnerships in place, dual-brand renovations can yield substantial ROI and position properties for long-term success in a competitive landscape.
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