HOW TO SUCCESSFULLY NAVIGATE THROUGH A HOTEL RENOVATION!

When a hotel goes through a renovation, it can be challenging to say the least. The most important focus is always about taking care of guests especially if the hotel is to remain open during the renovation. Hotels rarely shut down completely unless there is work being done on the infrastructure such as walls being knocked down and rebuilt. Implementing careful planning and keeping communication flowing smoothly is critical.

Photo Credit: Waldorf Hotel Renovation

Israel Mora, GM of the 405-key Holiday Inn Los Angeles-LAX Airport completed a full remodel in May and remained in operation. He said the renovation of the hotel, which was built in 1972, was a unique experience and “challenging in some ways but better in others.” Improvements to the Holiday Inn Los Angeles-LAX Airport included all new guestrooms and lobby. “Normally something like a lobby remodel would require the hotel to do one half at a time and wall off the part under construction. We honestly did something a little different,” he said. “We first built up the downstairs—where the parking area is—and set up a check-in counter and small lobby, where we were able to handle all of our guests while we shut down the entire lobby.”

TIMING AND PLANNING ARE KEY

“Though it was difficult to be without a full lobby for six months, the renovation plan surprisingly worked very well,” Mora said. To spruce up the makeshift lobby, his team added plants, seating and other décor to make guests feel welcome. It was also important that temporary walls were strong enough to prevent noise and dust from spreading. Guestrooms were done one floor at a time, which meant during the renovation 37 rooms were out of commission for each of the 11 floors.

This is where The Refinishing Touch® on-site FF&E solutions will tremendously maximize your hotel ROI. By refinishing your FF&E on-site in the rooms, in many cases rooms can be put back into service later that same day decreasing the downtime. Not only will you save at least 50%-80% by not replacing your FF&E and refinishing it, you experience additional saving by not incurring costs of shipping new furniture, delivery/installation set up, disposal of older furniture, and storage. These are REAL costs that you can avoid incurring by choosing to refinish you FF&E and not replace it. Just look at the incredible savings these actual hotels saved by choosing our refinishing services.

Photo Credit: The Refinishing Touch®

Another dramatic example that takes this to an even greater level is a recent project The Refinishing Touch® completed for the beautiful HILTON-Bayfront in San Diego, California.

Photo Credit: The Refinishing Touch® – Images from Continental Contractors, Inc.

The cost to replace their furnishings would be $6,358,344.27 but choosing the sustainable choice to refinish their cost was $583,465.88. That is a savings of $5,774,878.39, almost 91%! That is worth a phone call with us to discuss your sustainable options, wouldn’t you agree?

We encourage hoteliers to think about their environmental impact, as well. Look at how you can increase your hotel sustainability and reduce your CO2 footprint by simply choosing to refinish your FF&E.

Photo Credit: The Refinishing Touch®

Anne-Marie Houston, General Manager of Montage Laguna Beach stated “during our renovation, the first priority was the front entrance lobby and lounge, then onto guestrooms and suites. We zoned off the resort with partitions, or discretely closed off a wing when needed. Many of our guests were not aware we were working behind the scenes.”

The Refinishing Touch® provides options during a renovation whether you have a General Contractor, Project Manager, Interior Designer, we make sure that our scope of work fits seamlessly in line with the project timeline and your completion dates. Our teams work on projects coast-to-coast and we have completed over 7,000 renovation projects nationwide.

As a trusted and Preferred Supplier for HILTON, HOST Hotels and Resorts and many more, Mario Insenga has been helping hoteliers save money and be more sustainable for over 42 years.

Photo Credit: The Refinishing Touch® – Mario Insenga, Founder and Principal

COMMUNICATION AND TRANSPARENCY ARE IMPORTANT

When your hotel is experiencing a renovation, it is important for the hotel to communicate with guests that a renovation is going on and keep in mind guests are your first priority. Poor communication can even affect your trip advisor ratings if guests walk into a renovation when not made aware of it.  It is extremely important for your project team to carefully plan the renovation refresh to minimize guest disruption.

Be sure to post it on the hotel website, discuss it with any third-party meeting planners and event planners. First and foremost, communicate it during guest booking and make sure it is included on confirmations. You may still have some guests who don’t read it, but the key is to minimize those and make them the exceptions to maintain and protect a good rating. It is also beneficial to have the front-of-house staff show guests a building map outlining where the renovations were taking place.

“We made sure to communicate with our guests each step so there would be no surprises,” Ms. Houston, GM at Montage Laguna Beach said. “As a result, we encountered very few issues. Our guests have been extremely understanding of the work, especially over the last five months thanks to our professional team.”

Matt Bailey, managing director of Carmel Valley Ranch in California, said the golden rule to a renovation is no one should ever be surprised. His property’s refresh and renovation debuted in June and included refreshed guest suites, and meeting and event space.

“If groups had sessions going on, we either scheduled quiet work or we shut down; there were a few periods of time where we would shut down for a couple of days,” he said. “It was costly to do that, but our relationships with our groups are important enough that we’re willing to do that. It’s not uncommon though for guests to say, “Oh, I will come after (the renovation) is done,” he said. To keep guests informed, the property continually updated its website with renderings and phases of the renovation. Upon the completion of areas, updating your photographs to show the new product is very beneficial. … People get excited about that,” he added.

 With The Refinishing Touch® on-site process, we are in constant communication from beginning to completion and we make sure that our work meets and exceeds brand standard requirements.

 Photo Credit: The Refinishing Touch®

REVENUE MANAGING RENOVATIONS IS CRITICAL – KNOW WHAT TO EXPECT

Here is an example of what happens when construction doesn’t run on time…

Israel Mora, GM of the Holiday Inn Los Angeles-LAX Airport said construction rarely runs on time, so it’s common to miss the completion date by a few months. This can cause displacement since rooms are out of commission, he said. “In our case, well over $1 million (was) lost in revenue while we renovated; that’s not unusual. When the renovation’s over, rates go up, occupancy goes up and you make up some, if not all, of that. Something like that should be planned for,” he said, and he ensured that the hotel’s owners knew. His sales team understood that while in construction, rooms might need to be discounted. However, he said, market strength and demand drives rates more than a renovation.

When managing your renovation, cost controls that will impact your hotel ROI are critical and that is why our FF&E solutions are the smart and sustainable choice. Whether your hotel is experiencing a PIP, CAPEX or rebranding renovation, The Refinishing Touch® is the PIP Advisor expert and your partner in profit! Take the incredible savings you will experience with refinishing and reinvest that into upgrading your technology, security, lighting, HVAC, and much more. With our refinishing process, you are extending the life of your FF&E in years and can focus on the updates that guests are looking for when booking their next stay.

Photo Credit: The Refinishing Touch®

Houston said Montage Laguna Beach’s sales team carefully monitored occupancies “and orchestrated the refurbishment in line with ebbs and flows.” She said her hotel was fortunate enough to not be in a situation in which it had to offer discounted room rates.

Bailey said Carmel Valley Ranch’s main sources of revenue come from meetings and guestrooms. He said the hotel didn’t have to do too much discounting because the impact on guestrooms was relatively minimal. His sales team did not start increasing room rates until the renovation was complete, which was a good selling tool because it allowed guests to see the finished product and understand the value, he said.

THE KEY TO MAKE YOUR RENOVATION A SUCCESS

The key to making sure your renovation is a success is through thoughtful and careful processes in addition to having owners who are invested in the success of the project and their team.

Communication every week with contractors, project managers, designers to make sure everyone is on the same page and to notify the team of any delays or upcoming issues that need to be addressed. Our team at The Refinishing Touch® ensures that we are a part of the pre-construction meetings and conversations so we can listen and provide relevant information to avoid costly mistakes.

It is important for everyone involved in the renovation to stay in communication and focused on the goal.

Houston said it isn’t easy to undergo a renovation, “but our teams complemented each other perfectly throughout with good humor and understanding at all times.”

Mora said his hotel is already seeing the benefits coming out of the renovation. “Guests are coming back and are thrilled with the new product,” he said.

If your hotel is experiencing a PIP, CAPEX, or rebranding, call The Refinishing Touch® today at 1.800.523.9448 to discuss how we can save you money with our community of services, provide our expertise and make your hotel more sustainable.

 Email our Sales Manager, Erek Schwartz at [email protected] to request your online quote today.  To learn more about our community of services, we invite you to visit www.therefinishingtouch.com

RESOURCES:

Carbonfootprint.com

JN+A – HVS Hotel Cost Estimating Guide

How to succeed while operating through a renovation. By Dana Miller, Hotel News Now

THE KEY TO COST-EFFECTIVELY NAVIGATING YOUR HOTEL PROPERTY IMPROVEMENT PLAN! (PIP)

As hotel brand options multiply, PIPs continue to take center stage for hoteliers. Planning for PIPs early on can directly increase proceeds to sellers and lower the costs for buyers in most hotel transactions. In the right market conditions, a PIP can be highly beneficial. PIP renovations often create a path to increased profitability, providing a favorable return on investment.

While some hotel companies are loosening up on brand requirements, regarding materials in order to remain flexible on costs, dual-build hotels are becoming more common to retain value while providing two distinct products. “Sharing certain back-of-house spaces such as laundry, offices and even public spaces can help with the economics of development,” states Nate Gundrum, VP of Real Estate Development at Mortenson Development. “Hyatt developed a dual-build prototype for its Hyatt Place and Hyatt House brands, as well as a method to build that in an efficient way.” Marriott has gone a step farther and opened a tri-brand hotel in Nashville, featuring AC Hotels, Springhill Suites and Residence Inn.

Photo Credit: Marriott News Center, Tri-branded Hotel – Nashville

In most cases, updating guestrooms and public areas allow a hotel to be more competitive both for transient and group demand. If a PIP gives a hotel a chance to stand out among the competition, it can reward the owners with a greater market share and increased customer satisfaction, and thus a greater profit. Hotels are always looking to create those “instagrammable spaces” within their hotel.

Photo Credit: The Edwin Hotel Chattanooga

With the ongoing demand and increase of brand options contributing to rising PIP costs, parent brands seek to differentiate consumer experiences at each of their sub-brands, partially through furniture packages, revamped amenities and finishes. The total amount of work required to meet brand standards under a PIP can vary tremendously. These factors typically depend on the property condition, length of time since the property’s prior renovation and recently enacted brand standards not completed by the seller.

Photo Credit: New York Magazine

For over 42 years, The Refinishing Touch® has been at the forefront of providing the hospitality industry affordable and sustainable FF&E solutions. As a trusted PIP Advisor and Preferred Supplier for Hilton and Host Hotels and Resorts and many more, we have completed over 7,000 renovation projects nationwide. We can help project managers, GM’s, Chief Engineers, effectively navigate around the costly PIP pitfalls because of our years of experience and expertise.

If the brand believes in the ownership and with the proposed upgrades in PIP that the asset will complement the market, they may be more willing to defer or modify certain requirements. This strategy allows the buyer to negotiate with the brand for certain PIP modifications and controlling capital expenses. With an accurate understanding of the PIP cost, that is the time to negotiate with a trusted contractor to get your hotel completed within the budget and scheduled time frame.

In June of 2019, Arne Sorenson, Marriott’s Chief Executive, pledged to invest $500 million dollars into updating the Sheraton brand, it’s look and its reputation. The Sheraton Grand Phoenix, a 1,000-room hotel renovation, is expected to wrap up at the end of this year or in early 2020, and it will take five to seven years for a “critical mass” of Sheraton hotels to be renovated. 

You may not have $500 million to invest, but whatever your costs are we always encourage hoteliers to contact The Refinishing Touch® early in the specification process.  It gives us the opportunity to save you even more money without incurring more costly missteps that could be avoided.

Photo Credit: The Refinishing Touch®

It does takes time to get a PIP review in hand from virtually all the major brands. Usually, three to six weeks are required to prepare a PIP document that generally remains valid for six to 12 months so plan for a realistic timeline. Both the scope and completion timeframe of a PIP are often negotiable. But is it possible to push back the bathroom renovation an additional 12 months? Would the brand consider removing certain elements of a PIP, taking into consideration all the other capital being spent at this property and other franchised hotels? You may be able to negotiate renovation for some areas but when it comes to the condition of the FF&E, it is the largest part of the hotel’s asset and must be addressed immediately. As they say, you don’t get a second chance to make a first impression with your guests and that includes the condition of your guest rooms. Preventative maintenance also includes taking care of the guest room FF&E and making sure you stay ahead of any issues. Depending on the size of the hotel, maintenance accounts for between 4% to 6% of hotel’s operating budget.

Photo Credit: CAPEX Report 2018, ISHC, HAMA

The Refinishing Touch® provides sustainable and affordable on-site solutions with savings of at least 50% up to as much as 80%. In addition to extending the life of your FF&E for several more years, it provides the opportunity to take those years of savings and reinvest them into other areas of your hotel experiencing exponential change such as technology upgrades, security enhancements, HVAC improvements and more.

Photo Credit: The Refinishing Touch®

With the incredible growth in the hospitality industry and the tremendous financial investments being committed toward reconnecting the brands with guests, it is more critical than ever for hotel owners, asset managers, hospitality management companies to really re-examine their portfolio and hotel assets. If your hotel needs updating and guest rooms need to be refreshed with a soft goods renovation, The Refinishing Touch® provides many viable and sustainable options!

Photo Credit: The Refinishing Touch®

The Refinishing Touch® team will partner with you and review all the critical details during pre-construction planning of your renovation and provide many options you may have not considered. We provide on-site refinishing, re-engineering and reupholstering but we additionally provide solid surface replacement including stone, glass and laminate. We also provide decorative hardware selection. Our expertise includes providing strategic timing for when it’s best to have our team on the property during the renovation to keep it running seamlessly. We save you additional costs by not moving the furniture out of the rooms and incurring additional manpower, time and storage and reducing downtime of rooms out-of-service by getting the rooms back in-service the same day in many cases. This sets us apart and provides you with a trusted partner that has the professional experience you can count on.

Call us today for your online quote at 1.800.523.9448 and email Erek Schwartz, Sales Manager at [email protected] to discuss your project. It would be our pleasure to be your Sustainable, FF&E Solution Provider! For more information about our community of services, we invite you to visit www.therefinishingtouch.com

RESOURCES:

Navigating the PIP Process with a Project Manager By Stephen Siegel, Principal of H-CPM (Hospitality CPM)

Best Practices for Managing Your Hotel’s Next Property Improvements By Lillian Connors

Preparing for a transaction in a new era of PIPs By Nick Plasencia & Lou Plasencia