The marked decline in hotel profitability did not discourage hotel operators from investing in renovations. They see remodeling as essential not only to maintain customer loyalty but prices and market positioning as well. Renovation depends on the scope of works and is usually associated with the refurbishment of the hotel or its rebranding. Renovation of guest rooms is usually required every five years and includes adding new elements to the rooms to keep the hotel competitive.
Demographic changes in the hotel market and improvements introduced by niche operators forced the introduction of new standards. The interior design in hotels dedicated to business guests began to resemble boutique hotels. Hotel operators are not passive in the face of changing expectations, such as room sizes. In the 1990s, 28-32 m2 was the optimal size for guest rooms in business hotels. Currently, 32 m2 is the minimum room size in new hotels. There are also hotels with an area of up to 36 m2. Hotel guests are more and more design-conscious, especially new generations. Hotel operators serving business customers expanded their target with wealthy, young people in recent years. Hotels largely depart from traditional finishes, furniture and fittings, and adapt the style of boutique hotels.
The technical condition of hotel buildings is often a big problem during the renovation. Hotels that have developed over the years often consist of old interconnected buildings. In this type of complex, uneven floor levels are the most common problem. The lack of technical drawings and documentation only exacerbates the situation. Therefore, one of the most important elements of risk management in renovation projects for the hospitality sector is building structure measurements. This data is essential to prepare a budget that involves redevelopment work and reduces the risk of unexpected difficulties during hotel remodeling.
Refurbishment vs Rebranding
The refurbishment aims to keep the property in prime condition inside and outside, while upgrading is a response to what other hotels are offering. During hotel renovation, the scope of works usually includes repainting, replacement of furniture, equipment or change of door sizes. Rebranding is a more complex process which aims to relocate the hotel to a different market sector, increasing room rates and efficiency. Rebranding involves creating new guest rooms from redundant space, the replacement of bathroom fittings and complete replacement of finishes and furniture. Rebranding can increase turnover even by up to 38%.
Crucial Elements of Hotel Renovation
The main task of the design team and the general contractor is to find a balance between budget constraints, the vision of the hotel operator, delivery time and the condition of the building. Hotel renovations are often planned at short notice, so unexpected difficulties may arise. One of the most popular options to increase hotel revenue is to create new rooms. It is possible to obtain additional space by using the area in utility rooms, rooms for staff or by extending buildings. These types of renovation projects often face planning problems, usually related to traffic generation, access to light, and aesthetics. Another way to increase hotel income is bathrooms remodeling based on the latest design trends, such as the use of natural stone, glass and unique lighting. Hotel guests more and more often expect high-quality entertainment and room equipment with CD and DVD, video games, and even TV sets in the bathrooms. Hotel operators also provide extensive in-room amenities, including Broadband, and DDI private inbound phones.