As we mentioned in our last blog post, we recently attended the BITAC Purchasing & Design East at the end of July and in addition to meeting some great contacts, we were also able to attend some very informative and educational sessions. One of which was a discussion with Bruce Ford, SVP of Business Development with Lodging Econometrics, a hotel industry research firm.
During the discussion, Bruce provided insight into the current hotel market, including why 27 months of industry improvement has increased the number of renovation projects.
Of the current construction trends, owners of hotel properties in need of renovation are increasingly making those restorations, instead of selling, with the goal of saving long-term money while enabling increased room rates. In fact, this trend has been so widespread, according to Bruce, hotel sale numbers are only half of what experts thought they would be for 2012.
Also, renovation tactics, including refinishing, reupholstering, and remanufacturing, are being used to meet corporate brand product improvement plans (PIPs), which can be pricey and difficult to fulfill. By renovating, as compared to buying new furniture, hotel owners are taking out fewer loans and minimizing upfront costs, while still maintaining their franchise status.
If you’re a hotel owner thinking about renovating, Bruce suggests you start planning now. Even though the summer, conference season and the holidays mean busy hotels for the foreseeable future, the offseason is right around the corner. To read the entire article on Bruce’s BITAC session, visit Hotel Interactive here.
And if you’re looking to complete renovations at your hotel, from armoire conversions to custom remanufacturing, contact The Refinishing Touch for a free quote.