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Hotel Renovations: How Does It Impact Potential Revenue?

Hotel Renovations: How Does It Impact Potential Revenue?

May 17, 2023

Hospitality

Hotel Renovations: How Does It Impact Potential Revenue?

You may be planning to renovate your hotel to attract more customers. While this may be inconvenient in the short term, you'll receive long-term benefits through increased revenue. Here is a closer look at the steps involved in hotel renovation.

Is It a Complete Teardown?

Partial hotel renovation projects are ideal if your hotel needs to keep some cash flow. You may opt for a complete restructure if you're focused on a long-term vision.

When Is the Best Time?

A common thought is that the perfect time to complete hotel renovation projects is during the offseason. The off-season is the best time for hotel renovation projects because there's lower room demand. This makes it easier for you to complete a heavy construction project. You should aim to complete the project right when demand is about to rise. You can throw a big reopening party and allow guests to tour the facility. The increased buzz should help your hotel maximize profits. You should also be aware of local competitors. Launch your reopening at a unique time so your competitors stay focused on your big moment.

Key Strategies

It's recommended that you assess the costs involved and future projects before moving forward with the hotel renovation project. One of the primary goals should be maximizing your hotel's return on investment. Perhaps you plan to expand the room sizes, which requires a reclassification. You may have to change your marketing strategy. You may have to adjust the room rates as well. You should take time to assess the situation before making any decisions.

Customer Reviews

Your guests will likely leave a review once they have toured the hotel. There may be some criticism regarding the new project, but don't let that discourage you. It's impossible to make changes that will please everyone. However, the goal is to make sure that your guests are satisfied. It's essential to keep a positive attitude throughout.

Future Contracts

Another crucial part of the renovation project is assessing how things impact current contracts. You may have to move on if it no longer suits your business's best interests. It's recommended that the revenue and sales teams work together during the project to prevent more significant issues from forming. You don't want to lose money by offering rooms at lower rates, but overpricing may cause vacancies.

Consult with Parkwest General Contractors!

It's essential to have a plan before moving forward with your hotel renovation project so you'll be able to generate high ROI. The experienced team at Parkwest General Contractors will ensure your project turns out as expected. Contact us today to get started.

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