A Brief History of Hotel Renovation

Surprisingly, the traditional system of hotel renovation is only a few years older than Hotel Makeover.  Today’s franchised hotel industry began in the 1950’s, but gained momentum only in the 1970’s – 1980’s.  Product management in the young industry took a back seat to development and was slow to evolve.  Renovation mandates began in the early 1990’s, sparked by public dissatisfaction when the industry’s first-generation properties began to age.   More progressive brands then began to consider renovation as a system requirement.   

In the 1990’s, no one knew how or what to renovate. Franchisors were hesitant to demand too much of operators for fear of impeding their development business, so their early brand standards were minimal.  Designers were unaffordable to all but luxury hotels, and lower tier operators developed their own decors.  Furniture manufacturers were primarily residential brands, and their poorly conceived contributions were to simply cheapen their designs to meet the perceived demand for low prices. 

Renovation construction was a more serious problem.   There were no national renovation specialists, and franchisees – many of whom were not natural English speakers – were charged with the difficult task of managing 50 - 70 vendors and coordinating construction and procurement issues they knew nothing about.  With little knowledge, they often chose suppliers and contractors on price alone. 

What changed – and what didn’t.

In the early 2000’s, brands began to realize the original system wasn’t working, but décor decisions were still subordinated to franchisees.  FFE suppliers were treated by some franchisors as simple profit opportunities, and there was no vetting at all of contractors.  However, online reviews began and mushroomed, and less sophisticated operators paid a price in guest returns.   Franchisors paid an even larger price because prospective guests – who knew nothing of franchise structure - extrapolated that poor operator performance in one property extended to all hotels of the Brand.   

Eventually, most brands established stronger brand standards, and actual room and other design elements followed.   During this same period, due to market pressures at brand levels, the scope and cost of renovations has increased 5 – 10 fold, however, but franchisees still bear the burden of coordinating their own renovations, with no help or training. 

Furniture designs today are often relegated to manufacturers, who must, of course, prioritize their internal benefits over user benefits.  There is still no vetting of contractors, as franchisors are rightfully leery of liability issues.

The result today is renovations are even more difficult for the average franchisee, and far too expensive.