If you've thought about making hotel conversions or renovations but have been side-tracked by pro and con commentaries, be aware that there are many myths surrounding this topic. When you look closer at the facts, the renovation has helped many hotels emerge as stronger after the pandemic. Here are common myths about hotel improvements vs. reality.
Reducing costs is a top concern at all hotels since it's typically a seasonal business. A budget-conscious hotel manager may assume that the best way to cut renovation costs is to spend later money on the big items. It's better to take care of major repairs first so the hotel is ready for business sooner. If you let guests experience plumbing, heating, cooling, or electrical problems, it diminishes the chances of them returning.
It's best to completely fix walls, floors, ceilings, or anything else damaged before renting out rooms. Postponing repairs often leads to greater losses than addressing the issues right away. Then you can concentrate on training a hotel staff several months before the opening day.
Even with aggressive marketing, a new hotel franchise should not expect to be booked all year with reservations even half the time. Brand awareness and guest loyalty take time to build. It may take years for a new hotel to resonate with mainstream travelers, although it's possible to attract groups immediately with a comfortable, safe atmosphere.
Just because something is new doesn't mean it's ideal, which is what many explorers learn through trial and error. A new hotel brand may seem flashy on the surface, but in some cases, it may involve rebranding a poorly-run operation. A new name with a paint job doesn't always erase a bad reputation.
In some cases, hiring a large contractor that has done successful work for prominent brands makes sense, but only if it fits your business model. A reputable contractor can face difficulties meeting certain brand standards while complying with local building codes. Some builders may overlook new efficient solutions if ordinances don't require them.
New owners may make rosy projections and count on pre-selling as a way to get a quick blast of revenue. They sometimes overconfidently assume the business and location will attract a 70 percent occupancy rate in the months following the grand opening. But a strategy of pre-selling and building relevant business relationships can get a hotel off to a winning start.
Room supply and traveler demand are what drive the hospitality market. Other factors that affect sales include brand, amenities, location, and cost. Renovations can help stimulate growth and market excitement.