HOW TO SUCCESSFULLY NAVIGATE THROUGH A HOTEL RENOVATION!
When a hotel goes through a renovation, it can be challenging to say the least. The most important focus is always about taking care of guests especially if the hotel is to remain open during the renovation. Hotels rarely shut down completely unless there is work being done on the infrastructure such as walls being knocked down and rebuilt. Implementing careful planning and keeping communication flowing smoothly is critical.
Photo Credit: Waldorf Hotel Renovation
Israel Mora, GM of the 405-key Holiday Inn Los Angeles-LAX Airport completed a full remodel in May and remained in operation. He said the renovation of the hotel, which was built in 1972, was a unique experience and “challenging in some ways but better in others.” Improvements to the Holiday Inn Los Angeles-LAX Airport included all new guestrooms and lobby. “Normally something like a lobby remodel would require the hotel to do one half at a time and wall off the part under construction. We honestly did something a little different,” he said. “We first built up the downstairs—where the parking area is—and set up a check-in counter and small lobby, where we were able to handle all of our guests while we shut down the entire lobby.”
TIMING AND PLANNING ARE KEY
“Though it was difficult to be without a full lobby for six months, the renovation plan surprisingly worked very well,” Mora said. To spruce up the makeshift lobby, his team added plants, seating and other décor to make guests feel welcome. It was also important that temporary walls were strong enough to prevent noise and dust from spreading. Guestrooms were done one floor at a time, which meant during the renovation 37 rooms were out of commission for each of the 11 floors.
This is where The Refinishing Touch® on-site FF&E solutions will tremendously maximize your hotel ROI. By refinishing your FF&E on-site in the rooms, in many cases rooms can be put back into service later that same day decreasing the downtime. Not only will you save at least 50%-80% by not replacing your FF&E and refinishing it, you experience additional saving by not incurring costs of shipping new furniture, delivery/installation set up, disposal of older furniture, and storage. These are REAL costs that you can avoid incurring by choosing to refinish you FF&E and not replace it. Just look at the incredible savings these actual hotels saved by choosing our refinishing services.
Photo Credit: The Refinishing Touch®
Another dramatic example that takes this to an even greater level is a recent project The Refinishing Touch® completed for the beautiful HILTON-Bayfront in San Diego, California.
Photo Credit: The Refinishing Touch® – Images from Continental Contractors, Inc.
The cost to replace their furnishings would be $6,358,344.27 but choosing the sustainable choice to refinish their cost was $583,465.88. That is a savings of $5,774,878.39, almost 91%! That is worth a phone call with us to discuss your sustainable options, wouldn’t you agree?
We encourage hoteliers to think about their environmental impact, as well. Look at how you can increase your hotel sustainability and reduce your CO2 footprint by simply choosing to refinish your FF&E.
Photo Credit: The Refinishing Touch®
Anne-Marie Houston, General Manager of Montage Laguna Beach stated “during our renovation, the first priority was the front entrance lobby and lounge, then onto guestrooms and suites. We zoned off the resort with partitions, or discretely closed off a wing when needed. Many of our guests were not aware we were working behind the scenes.”
The Refinishing Touch® provides options during a renovation whether you have a General Contractor, Project Manager, Interior Designer, we make sure that our scope of work fits seamlessly in line with the project timeline and your completion dates. Our teams work on projects coast-to-coast and we have completed over 7,000 renovation projects nationwide.
As a trusted and Preferred Supplier for HILTON, HOST Hotels and Resorts and many more, Mario Insenga has been helping hoteliers save money and be more sustainable for over 42 years.
Photo Credit: The Refinishing Touch® – Mario Insenga, Founder and Principal
COMMUNICATION AND TRANSPARENCY ARE IMPORTANT
When your hotel is experiencing a renovation, it is important for the hotel to communicate with guests that a renovation is going on and keep in mind guests are your first priority. Poor communication can even affect your trip advisor ratings if guests walk into a renovation when not made aware of it. It is extremely important for your project team to carefully plan the renovation refresh to minimize guest disruption.
Be sure to post it on the hotel website, discuss it with any third-party meeting planners and event planners. First and foremost, communicate it during guest booking and make sure it is included on confirmations. You may still have some guests who don’t read it, but the key is to minimize those and make them the exceptions to maintain and protect a good rating. It is also beneficial to have the front-of-house staff show guests a building map outlining where the renovations were taking place.
“We made sure to communicate with our guests each step so there would be no surprises,” Ms. Houston, GM at Montage Laguna Beach said. “As a result, we encountered very few issues. Our guests have been extremely understanding of the work, especially over the last five months thanks to our professional team.”
Matt Bailey, managing director of Carmel Valley Ranch in California, said the golden rule to a renovation is no one should ever be surprised. His property’s refresh and renovation debuted in June and included refreshed guest suites, and meeting and event space.
“If groups had sessions going on, we either scheduled quiet work or we shut down; there were a few periods of time where we would shut down for a couple of days,” he said. “It was costly to do that, but our relationships with our groups are important enough that we’re willing to do that. It’s not uncommon though for guests to say, “Oh, I will come after (the renovation) is done,” he said. To keep guests informed, the property continually updated its website with renderings and phases of the renovation. Upon the completion of areas, updating your photographs to show the new product is very beneficial. … People get excited about that,” he added.
With The Refinishing Touch® on-site process, we are in constant communication from beginning to completion and we make sure that our work meets and exceeds brand standard requirements.
Photo Credit: The Refinishing Touch®
REVENUE MANAGING RENOVATIONS IS CRITICAL – KNOW WHAT TO EXPECT
Here is an example of what happens when construction doesn’t run on time…
Israel Mora, GM of the Holiday Inn Los Angeles-LAX Airport said construction rarely runs on time, so it’s common to miss the completion date by a few months. This can cause displacement since rooms are out of commission, he said. “In our case, well over $1 million (was) lost in revenue while we renovated; that’s not unusual. When the renovation’s over, rates go up, occupancy goes up and you make up some, if not all, of that. Something like that should be planned for,” he said, and he ensured that the hotel’s owners knew. His sales team understood that while in construction, rooms might need to be discounted. However, he said, market strength and demand drives rates more than a renovation.
When managing your renovation, cost controls that will impact your hotel ROI are critical and that is why our FF&E solutions are the smart and sustainable choice. Whether your hotel is experiencing a PIP, CAPEX or rebranding renovation, The Refinishing Touch® is the PIP Advisor expert and your partner in profit! Take the incredible savings you will experience with refinishing and reinvest that into upgrading your technology, security, lighting, HVAC, and much more. With our refinishing process, you are extending the life of your FF&E in years and can focus on the updates that guests are looking for when booking their next stay.
Photo Credit: The Refinishing Touch®
Houston said Montage Laguna Beach’s sales team carefully monitored occupancies “and orchestrated the refurbishment in line with ebbs and flows.” She said her hotel was fortunate enough to not be in a situation in which it had to offer discounted room rates.
Bailey said Carmel Valley Ranch’s main sources of revenue come from meetings and guestrooms. He said the hotel didn’t have to do too much discounting because the impact on guestrooms was relatively minimal. His sales team did not start increasing room rates until the renovation was complete, which was a good selling tool because it allowed guests to see the finished product and understand the value, he said.
THE KEY TO MAKE YOUR RENOVATION A SUCCESS
The key to making sure your renovation is a success is through thoughtful and careful processes in addition to having owners who are invested in the success of the project and their team.
Communication every week with contractors, project managers, designers to make sure everyone is on the same page and to notify the team of any delays or upcoming issues that need to be addressed. Our team at The Refinishing Touch® ensures that we are a part of the pre-construction meetings and conversations so we can listen and provide relevant information to avoid costly mistakes.
It is important for everyone involved in the renovation to stay in communication and focused on the goal.
Houston said it isn’t easy to undergo a renovation, “but our teams complemented each other perfectly throughout with good humor and understanding at all times.”
Mora said his hotel is already seeing the benefits coming out of the renovation. “Guests are coming back and are thrilled with the new product,” he said.
If your hotel is experiencing a PIP, CAPEX, or rebranding, call The Refinishing Touch® today at 1.800.523.9448 to discuss how we can save you money with our community of services, provide our expertise and make your hotel more sustainable.
Email our Sales Manager, Erek Schwartz at [email protected] to request your online quote today. To learn more about our community of services, we invite you to visit www.therefinishingtouch.com
RESOURCES:
Carbonfootprint.com
JN+A – HVS Hotel Cost Estimating Guide
How to succeed while operating through a renovation. By Dana Miller, Hotel News Now