Hotel renovation can be a great thing for a hotel owner, but there’s a paradox that comes with it. When times are good, hoteliers simply don’t want to impact their revenue by taking rooms out of commission with a hotel renovation. However, a good renovation can give a property a much-needed facelift and boost the bottom line even more.
So, when is a good time to update a hotel with cutting edge amenities and new classy layouts?
Basically, experts seem to think that the best time to fix up a hotel is when things are going well. However, today’s economy has put a damper on many hotels. If an hotelier is strapped for cash but wants (or needs) a hotel renovation, they should keep their eyes on the prize and find some capital. Invest in capital expenditures. Keep an eye on ROI.
Today, hotel renovations might be a little less expensive than they normally are – that’s just a sign of the economic times. Construction costs have come down, though historically they have increased over time. In fact, costs are down by about 10% across the country, which is good news for hotel owners hoping to catch a deal on renovation.
The economy also has slowed down business across the nation, so that means that hotel renovations won’t really disrupt as many guests as they would during peak times. Remember, when planning travel, many vacationers seek out hotels that have top-notch rooms and recent renovations.