In the hotel industry, Product Improvement Plans, Property Improvement Plans, or just plain PIPs, are a fact of life. PIPs are documents that detail the property upgrades and improvements mandated by a specific brand, which must be met before a hotel is accepted as the required standard to become or remain a franchised property.
As experts in furniture asset management across a number of industries including hospitality, we have written about PIPs many times. We’ve covered the opportunities presented to franchise owners when corporate brand owners mandate PIPs. We’ve also discussed some of the motivators, complications and business impacts of PIPs.
We know from working with thousands of hotel owners and franchisees confronted by PIPs, that repurposing assets rather than buying new can play a significant role in meeting the required standards. Smart furniture asset management drives property projects with excellent ROI, customer satisfaction, environment credentials and overall value.
At the last InterContinental Hotel Group’s Investors and Leadership Conference, our team connected with hospitality professionals on this topic. We networked with customers and partners and took the time to ask hundreds of owners and operators for their opinions on sustainability, furniture asset management and PIPs. We asked conference attendees if they were driven by cost or the need to be green when adhering to requirements mandated by PIPs. Around 98% told us that cost was their biggest driver, although almost half (45%) also wanted to demonstrate environmental responsibility when implementing PIPs.
We fully understand the budget pressures put on owners and operators by mandatory PIPs. We also know from almost four decades of successful furniture asset management, that sustainable initiatives and financial benefits are not mutually exclusive.
Well-written, considered and balanced PIPs take into account the combined advantages of increasing guest satisfaction, hitting budget targets, achieving healthy profits and developing new financial opportunities. Modern PIPs should also help owners and franchises to demonstrate their mutual commitment to sustainable initiatives.
Meanwhile if you have any thoughts on PIPs or any questions about how furniture asset management can support PIP implementation, then please get in touch with us via email at [email protected].