The Refinishing Touch Blog

We’re committed to delivering value for money to all our customers, and always have been. In the current climate this is more important than ever, and most forecasts predict that the years of simply replacing outdated or worn furnishings are gone. The new watchword for the hotel industry is renew.

From Marriott to Starwood, all the major chains are rolling out significant reburbishment plans alongside their global construction plans – and in the case of Choice Hotels, they’re refurbishing almost to rooms for every new room they bring online.

Good news for us at TRT, certainly, but also recognition of the fact that, whilst the worst of the financial crisis of the past couple of years may have passed, the effects of 2008 – 2009 will linger for some time to come. Refurbishing and refinishing rooms shouldn’t be seen as a lesser option, however. With the techniques we use, it’s a quick, cost-effective way to keep your rooms looking their best, and clean, well appointed rooms can be the difference between a recommendation and a lukewarm review. Even the Las Vegas resort hotels, famous for being in a constant state of change, are opting for renewal – with the high-end Wynn Las Vegas about to renovate every single one of its 2,700 rooms. The only question for hotel mangers is this: if everyone else is doing it, why aren’t you?

Labels: Choice Hotels, Hotel Industry, Marriott, renovation, Starwood, Wynn

Hospitality was among the hardest-hit industries in the economic recession. Yet despite declines in hotel operating profits, property values and mortgage capital, both hotel buyers and brokers stand to benefit in the near future in several ways.

One way buyers benefit is that they can purchase properties for bargain prices. Past recessions have demonstrated that hotel values typically drop to between 30 and 40 percent of their replacement cost. HVS, a global hospitality consulting organization, conducted a sample of transactions involving U.S. branded hotels in 2009, and they found that current hotel room prices appeared to be close to the bottom-out range and room prices were significantly less now than they were in 2007.

In addition, many highly discounted hotels are located in neglected areas and markets that have halted or slowed development until the economy recovers. This creates a barrier will help prevent buyers from overbuilding in the future.

Most hotel owners are steadfastly clinging to the hope of economic recovery before putting their properties up for sale. According to HVS, the number of hotel transactions that took place in 2009 were roughly one-quarter the number that took place in 2005. On the bright side, private equity funds have raised billions to purchase deeply discounted hotels with equity capital once they’re put up for sale, which means the funds could provide much-needed financing once mortgage debt becomes available again.

Hopefully the combination of private equity capital, a limited number of transactions and slowly improving occupancy rates will result in increased room rates and an improved market, and with any luck, these efforts will only drive the hotel industry to an even more rapid recovery.

Labels: 2010, economy, Hotel Industry, HVS

Recession has taken a toll on a number of industries, including, as we’ve touched upon here, the hotel business. Companies that have weathered the storm have found unique ways to maintain customer loyalty. Among the businesses that have managed to stay afloat? The modern day jam band.

Bands like Phish and moe. have established a business model that is almost entirely different than other artists. They don’t sell many records, they keep concert prices low and they encourage taping at their show. Although this might seem to hinder the band’s success, when Phish announced a tour in March 2009, it had 10 million requests for 400,000 tickets at $50 each. By keeping tickets relatively inexpensive, Phish promotes a community concert experience. Devoted fans can travel to shows at a fairly low cost, and do it alongside their peers. This experience keeps Phish fans coming back.

Hotels are charged with the same task: generating loyalty amongst travelers. By giving customers what they want, they will return, and what more and more travelers want are environmentally-friendly facilities. If hotels are trying to meet customer demand, establishing green practices isn’t a bad place to start. Battling unfavorable economic conditions requires thinking about more than short-term gain, but about cultivating long-term relationships and financial viability. Taking steps to become environmentally conscious sounds like it fits the bill.

‘Widespread Panic’ is a jam band, not a prognosis for the hospitality industry. Hotels, like jam bands, can learn to appeal to customers and keep them coming back.

Labels: consumer trends, economy, Environment, Going Green, Hotel Industry

Here at TRT, we love to hear how organizations throughout the hospitality, government and education sectors are taking steps to become more eco-friendly. Recently, the North American branch of Accor, a global, environmentally conscious hotel group that owns brands such as Sofitel, Novotel and Motel 6, made a commitment to reduce its impact on the environment by joining the EPA's National Partnership for Environmental Priorities (NPEP).

The EPA's program aspires to decrease the use of dangerous chemicals that result from various products and processes. These chemicals can find their way into the land, air and water and are potentially hazardous to the health of humans as well as the environment. Partners of the NPEP aim to use resources more efficiently so as to reduce the risk that these chemicals pose.

Along with Accor's partnership with the NPEP, several initiatives have been put in to practice as a means to continue in its commitment to sustainability. These include reducing water waste with water-saving and more water-efficient shower heads and faucets, pledging to reduce electricity consumption by 10 percent in the next year, installing high-tech heating and cooling systems and using energy-saving compact fluorescent lighting.

With more international hotel groups like Accor making commitments to reducing their carbon footprints and taking proactive steps to become more sustainable, we are thrilled to see how hospitality players throughout the world follows suit.

Labels: Accor, EPA, Hotel Industry, NPEP