Anatomy Of A Hotel Makeover

Your Hotel Is A “Product” You Market

At their core, hotels rooms and amenities are products hotel owners, operators and, by extension, franchisors “sell” in the form of renting by the visit.  Hotel renovation, or makeover, is the primary marketing process you have to improve the product you offer so you can sell more rooms and amenities.  That means they are not so much about color and style as they are about the utilization of color and style to compel guests to return to your hotel.  Hotel Makeover differs from other hospitality designers and contractors because we focus on the marketing results of renovations so we can deliver more guests to our client hotels more frequently.

The Process Of Renovation

The process of renovation is complex, and every detail must be addressed.  Your product is a total experience, consisting of everything guests see, touch, feel, smell or taste.   If you spend millions on what visual improvements, but your property smells bad, you wasted your money.  In fact, all partial renovations are difficult to accomplish because unrenovated elements are more noticeable against renovated elements than they are in an unrenovated hotel.  That old, odd color in your bathrooms may not be noticeable now, but it will negatively stand out when the rest of the guestroom is fresh and up to date.  When possible, therefore, you should consider total makeovers rather than partial renovations. 

How Often Should You Renovate

Every guest experience is an opportunity for an owner or franchisor to gain or lose market share so, as with all marketed products, you must refresh your physical and service package periodically.   The ideal renovation “interval” is an annual systematic refresh and progressive update. Otherwise, the interval depends on your market, clientele, maintenance procedures, occupancy and design style.   In a perfect world, budgets should be prepared years in advance and factored into rates, so economic factors should come into play only when they disrupt those budgets or occupancy load factors.   In the real world, however, budgeting and financing are often difficult.  The simple rule is renovate when your guests tell you you need it. 

Types Of Renovations

There are several types of renovations, with different goals and potential processes:

Update Renovation

An update renovation is the most renovation most people think of. It is a periodic refresh that cleans up old problems and perhaps installs a new decor. It is most often required by PIP’s in franchise hotels.

Change of Ownership Renovation

When a franchise hotel changes hands, a change of ownership PIP is typically issued. It is often more demanding than an update PIP, although franchisors may make concessions or offer to delay compliance to make the franchise sale.

Brand Conversion

A brand conversion occurs when you change the brand of your hotel. It is often far more complex than a simple renovation, and franchisors often hold you to their current new build standards of decor and space planning.

Facility Conversion

A facility conversion occurs when you convert a non-hotel property to a hotel or, conversely, from a hotel to another type of development, such as a senior living facility. These are always major renovations requiring extensive planning and special expertise.

System Initiative Upgrade

A System Initiative is a franchise requirement to change the service or décor package throughout (typcially) their system. The result may be a relatively minor renovation, such as a simple upgrade to breakfast service décor, or a major renovation, such as a total property reimaging.

Progressive Renovation

Progressive Renovation is used typically in large and timeshare resorts, where total renovation is typically impractical or unaffordable. It requires development of a long term design program that is incrementally implemented over many years.

Renovation Responsibilities

Here is the structure of responsibilities in the development of hotel “products:”

Insert Diagram

The Franchisor defines the brand of the hotel.  The Franchisor targets a specific client audience, develops concepts and quality standards, and promises prospective guests that those concepts and standards will be maintained.  The Franchisor sets price points and service features to attract specific preferences, and develops advertising that will bring the guest to the hotel – but only ONE TIME.  Repeat visits are the responsibility of the Operator.   

The Franchisor periodically inspects the hotel to verify that its concepts and standards are appropriately maintained, and adjusts the concepts and standards from time to time to remain appealing to the target guest. 

The Owner is the investor who purchases or constructs the facility.  The Owner / investor may or may not actually operate the facility, but he or she contracts with the Franchisor to maintain the brand’s concept and quality standards.  The Owner / Investor contracts with the Financer to obtain the money to fund the development or improvement, and he or she selects and manages the Operator.  

The Financer may be a bank, insurance company, leasing company or consortium of investors who provide the funds to the owner/investor to build or purchase and renovate the property. 

The Operator is often the owner in small properties, but may be a paid manager or contracted hotel management company who supervises the staff, and deals face to face with guests.   The Operator provides the services and personal interaction that keeps guests happy.  The Operator’s job is to encourage guests to return through maintenance of the product and personal interaction. 

Hotel Makeover interacts with all stakeholders and, like Operators, our job is to bring guests back to the hotel.  However, whereas Operators provide personal interaction, we conceive and actually produce the “show” guests experience.  Actin in the role of product manager, we design, stage and construct exteriors, lobbies, rooms, restaurants, fitness centers, pools lighting, landscaping, housekeeping laundries, furniture, toilets, wall coverings, and all other elements guests may sense.  

We also facilitate the development, maintenance and improvement of each market product with the other parties.  We are the voice of the guest to the owner, and the voice of the owner to the franchisor.  We verify for the Franchisor that all elements of the facility are in compliance with the concept and quality standards promised, and we consult, prepare budgets, and occasionally bring investors and financers together.