Happy New Year, and welcome to 2017. This is a very exciting year for both the hospitality industry, and us as well here at The Refinishing Touch. The lodging business is on a fantastic journey, and this year we expect the hotel industry to see more renovations than at any time in history. With so […]
Millennials are a fickle bunch. Partly because they’re a group still trying to figure out their likes and dislikes, and partly because the world in which they grew up is vastly different than the ones their Generation X and Baby Boomer brethren experienced in their formative years. But there are ways to better connect with […]
It was time for the hotel industry’s midyear check-up as the most powerful lodging industry leaders headed to New York for the annual NYU Hospitality Investment Conference. This event focuses mostly on the financial side of the business, so for two days, the NY Marriott Marquis became the epicenter of the hotel universe. If you want to get deals done this was the place to be.
It seems the predominant thought on the collective mind of attendees is how to save, save, save. Though the industry is still delivering outsized performance, smart hoteliers are already thinking about an eventual industry downturn. Not in a “Hey, let’s panic” sort of way. It was more about being smart and preparing for the future.
That’s why these folks are starting to think about how to save like a boss, and why many more realize it’s critical to find smarter, less expensive ways to renovate their hotels that also create memorable guest experiences.
Here are our top reasons shared at the NYU Hospitality Investment Conference why hoteliers are starting to think about lowering their expenses.
Irrational panic about this mosquito born virus is starting to bite into traveler’s desire to get out and explore new places. While we think most concerns are misplaced, the reality is if more people panic it could start to hurt industry profitability. Remember the Bird Flu and H1N1? They made headlines and hurt the travel economy though both were essentially imagined threats.
One of the ways hotels have been able to stay full and profitable is by a record number of overseas visitors coming here to spend their money. And lots of it, too. International visitors typically stay longer and spend more money per day. But with the current political climate and chatter about building walls and curtailing visa waiver programs, your hotel may suffer because of political shenanigans.
“Travel is a perception driven business. If they think it will be a hassle, they simply won’t make the trip,” said Co-Chairman of the Board and Office of the President, Loews Corporation, Chairman Loews Hotels & Resorts. “The rise of political turbulence and political rhetoric is creating the misguided idea the fortress America is one the rise. Pulling back from the rest of the world is simply not an option.”
The hotel business is enjoying its longest stretch in recorded history of increased profitability. Meaning, more money is being earned by hotels now over the previous month, on average, for the last six years.
However, rate of revenue per available room (RevPAR) growth is slowing. That’s a clear signal it’s time to figure out ways to cut back on expenses where possible. Whether it’s renegotiating vendor contracts, realigning corporate structure, or refinishing or re-engineering furniture rather than needlessly buying new pieces.
The nerve-inducing Airbnb is still driving hoteliers nuts as they try to figure out the true impact of this encroaching disruptor.
“People are willing to accept non-traditional lodging stays more than ever. Their needs have gone beyond the typical housing product, why let them go somewhere else?” said Steve Joyce, President & CEO of Choice Hotels International.
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For more information on The Refinishing Touch and how we help hotel owners, developers and designers reimagine spaces by reinventing their furnishings, contact us online, call (800) 523-9448, or email us at email@example.com.
At The Refinishing Touch, we take guestroom design seriously. No joke. We want your hotel to stand out from the competition. A well-constructed furniture asset management program makes all difference to your guests and your bottom line. So straight from our home office in Alpharetta, GA, here are the Top 10 reasons partnering with The […]
In previous posts we have covered several furniture asset management best practices including life cycle planning and working onsite. We have also touched on the premise that investing in high-quality furniture underpins good furniture asset management. When it comes to furniture there is a cost related to poor quality. Budget holders may be tempted to buy […]
We regularly write on sustainability and how it’s in line with the mission of the hotels, colleges and government organizations with which we work. These organizations want to reduce their carbon footprint, environmental impact, and save their bottom line. To us, and our 22,000-plus customers, furniture asset management practices such as refinishing, re-upholstery and remanufacturing […]
How frequently should you update your furniture?
Let’s take hospitality as a benchmark. It’s a good example because it’s one of the core industries we specialize in, and its high furniture use means it tends to have well-structured furniture asset management processes.
In hospitality we find the average furniture asset lifecycle is seven years, which means that hotels expect to keep furniture for seven years before planning to replace it. Seven years is a generalization – we have worked with hotel chains and brands with shorter review cycles of furniture assets, and a few with longer cycles – but it’s a guide for any institution or business that is managing substantial furniture assets.
In short, furniture asset management, like any important business process, needs to be planned. We’ve previously covered elements of this, such as inventory management and talked about the ideal scenario of documenting date of acquisition, acquisition costs, composite materials, current condition and locations of existing furniture assets.
Seven years is the average lifespan we’ve seen from working with more than 22,000 customers over 37 years, but it’s not a figure set in stone (or wood). Furthermore, with wise spending and good planning the lifecycle of valuable furniture assets can be doubled.
To lengthen the lifecycle it’s important to recognize another best practice of furniture asset management, which is to invest in high-quality furniture. We sometimes see managers make furniture buying decisions based on the short-term thinking of ‘pay less now’. Poor-quality furniture has a short lifespan – it cannot be refinished or updated, and will simply end up in landfill after a few years. It’s a bad decision for the environment, and for the business. Buyers need to avoid sub-standard materials such as particleboard, chipboard or furniture which has low-quality ‘filling’ composite material.
There are a number of options when it comes to updating furniture. Furniture asset management best practices include refinishing, re-upholstery and remanufacturing. We specialize in each of these, and have updated hundreds of thousands of furniture pieces, saving our customers up to 80 percent on expenditure, preserving their environmental impact and working on-site to reduce downtime.
If you’d like to discuss the furniture asset management lifecycle in your industry, and how it can be lengthened to protect your investment in furniture assets, then please get in touch today.
The hospitality industry is one of the largest industries in the world. It’s also an intensive business, switched on 24 hours a day, seven days a week and 365 days a year. This intensity is emphasized as brands, hotel owners and managers continually work to meet, react to and exceed constantly-changing consumer expectations. One force […]
As a specialist in furniture asset management for the hospitality industry, we like to keep track of news of renovations, updates and plans from brands, hotel owners and franchisees. Since the downturn of 2008 the industry continues to gain momentum and we have seen a strong year-on-year demand for furniture asset management services.
There are many reasons for this increase. If you’re one of our regular readers, then you will know that an increase in awareness of environmental impact has certainly driven sustainable objectives. Furniture asset management has become increasingly important to hotels as consumers and travelers become more ‘enviro-conscious’. There is also an undeniable fiscal impact, with furniture asset management frequently cutting budgets by up to 80 percent. Add to this blend the minimal downtime incurred by onsite work, and you quickly realize why so many organizations are turning to furniture asset management.
One area that is less frequently talked about, but is also a driver of furniture asset management, is a genuine demand for good furniture. And we mean good furniture. High quality, well-crafted items with strong joints and solid construction. No squeaks, gives and certainly no particleboard, chipboard or other low-quality ‘filling’ composite material. Finding such good quality furniture can be a challenge in a time when many individuals seem to have developed a ‘throw away’ attitude to furniture. The ‘rip and replace’ mentality was never a good decision. It was always an environmental and financial black hole for businesses and organizations. Travelers expect high-quality furniture and it’s imperative that the furniture we all invest in is comfortable, well made, built to last and fit for purpose.
Many brands choose to go a step further, and insist on buying from domestic suppliers. The USDA regulates the import of wood-based products, largely to prevent any disease, pest or environmental impact on the flora and fauna of the United States. But to us shipping new furniture from other parts of the globe adds unnecessary carbon footprint, costs and delays. We are strong proponents of buying furniture domestically from well-regarded suppliers, or at the very least knowing the source and the status of the wood assets we buy. This is about making a well-informed conscientious buying decision. We make no secret that we support and encourage buying domestic goods.
It’s also about understanding the wood that your existing furniture is made of. We have refinished softwoods and hardwoods of all different types. It is our job to know what a piece of furniture is made of and how to enhance the natural beauty of wood. Do you know what wood furniture you have and how it can best be preserved? And before you buy from that untested source, are you clear on the wood? Do you know whether or not that the Peruvian Walnut is endangered? Or if that African Blackwood has a ‘near threatened’ status? And if you buy composite materials including particleboard and chipboard instead, then it may have a very short ‘room life’ before it ends up as landfill.
Chances are your organization has already invested in high-quality wood furniture. Now you need to apply furniture asset management best practices to ensure that you are maximizing it. Please contact us today at firstname.lastname@example.org to discuss your investment and how to protect it.
In a recent post we discussed one of the cornerstones of furniture asset management; inventory management. At The Refinishing Touch we not only provide refinishing, remanufacturing and re-upholstery services, we also help our customers to manage and track those furnishings and fixtures as capital assets, using web-based asset management tools.
When TRT was founded back in 1977, we became known for providing environmentally-safe furniture refinishing services, but times have changed considerably. Today our business is about managing assets, helping our customers to manage expenditure and their business continuity needs.
What makes us different isn’t just the longevity of our materials and finishes. It’s our ability to work on-site, to ensure our customers stay open and productive. The industries in which we work: hospitality, education and government, have little tolerance for downtime and rooms cannot be out of use for days or weeks. Furniture is a vital part of these operations, and it needs refinishing, re-upholstery or remanufacturing because the organization is busy and successful. Creating downtime therefore has a direct calculable dollar cost. If a hotel, public sector organization, or educational facility has rooms of action it causes problems,so we work safely and responsibly onsite.
Our onsite approach is efficient in terms of both cost and carbon. We know that the alternative, transporting furniture offsite, is a waste of time, money and carbon dioxide. We are able to work onsite when many large refinishing companies cannot. This comes as a result of four decades of experience doing just that. We know better than anyone how to minimize disruption, move seamlessly from room to room, and how to ensure that those rooms are back in operation quickly.
Using non-toxic processes are also crucial in working onsite. We don’t use solvents in our processes and our non-toxic lacquers don’t contain dangerous Volatile Organic Compounds (VOCs). They are hypoallergenic, safe and clean, because we understand how important it is to use safe, responsible products.
Our approach to furniture asset management certainly guarantees indoor air quality and safety. But in business terms, it means quicker processes, lower labor costs and a quicker turnaround on refinished rooms for everybody involved.
Contact us at email@example.com to discuss how onsite furniture asset management can save your organization time, money and downtime.