There is a lot of competition in the hospitality industry, so one of the ways to stand out from the crowd is to keep the property in excellent condition. For many hotel owners, this requires an ongoing maintenance process, modernisation and refurbishment. Some renovations have a low-cost impact, while others require a significant capital investment. Therefore, owners should be entirely familiar with the cost of the hotel renovation, general contractors services or hotel remodeling planning. In this article, we provide tips on how to help hotel owners maintain the value of their investment.
Tips for Hoteliers
Both remodeling and renovation are more than just improving the hotel’s aesthetics. They require careful evaluation of the overall experience of the guests. They may relate to problems with hotel operation and design that needs a solution. Initial testing should help you evaluate all aspects of performance, including staff quality and ease of use.
After understanding your current situation, it is time to define your renovation concept. The renovation will distinguish your property from the competition and should include requirements for new facilities and revenue opportunities. The architect can help you redesign a hotel to fit a specific market. For example, you can open a hotel restaurant that serves local food and wines.
The architect will also gather the knowledge of professionals dealing with indirect industries influencing the overall operation of the facility (technology in the kitchen, installations, utilities, SPA equipment, fitness). Knowing your budget will allow him to distribute his strength according to his needs. Additionally, architects who know how to design hotels will save a lot of money already at the renovation stage and in the later operation of the hotel. Knowledge of materials is invaluable.
How to choose the best available renovation company? Appropriate investment planning will allow you to set the date of work in advance, as well as negotiate financial conditions with the contracting company. It is worth remembering that architects can recommend construction companies and certify their professionalism. They can also contact investors with a similar profile and take advantage of their experience. We suggest not hiring separate contractors for electricity, water and sewage or construction works, but sign a contract with a general contractor who will be obliged to perform the work following the deadline specified in the contract and provide you with a guarantee for the work performed.
Hotel Renovation Costs
The cost of renovating a hotel includes the cost of new carpets, upholstery, mattresses, pillows, towels, curtains and other similar items. Renovation costs include paint, wallpaper, surfaces, artwork, new furniture and fixtures, and other décor.
Sometimes hotels undergo remodeling to refurbish, reconfigure or extend a property. Designs can range from a new exterior facade, new builds, new bathrooms, redone interior design or an expanded car park. Construction work may also include technology upgrades to improve connectivity, security, control and entertainment. Minor renovations can be inexpensive, while extended construction can easily incur six-digit and seven-digit costs.
Hoteliers need to be able to carry out renovation work while minimizing hotel disruption and revenue generation. It requires careful planning, budgeting and financing. The lack of an integrated plan can cause a waste of time and money. Renovation costs for economy, midscale and extended stay hotels differ significantly from luxury ones.
Hotel Renovation Planning
Both hotel renovations and their schedules differ significantly. Equipment, fixtures and furniture replacement should be done every three to six years. For top-quality hotels, each renovation cost average is £ 12,000 per room. Basic renovation is more extensive. It could mean upgrading features and systems at the average cost of around £ 19,000 per room in a five-star hotel. Complete renovation usually takes place every 25-50 years and includes a main refurbishment.
A five-star hotel can spend even £ 100,000 for a fully refurbished room. Other issues affecting the cost of repairs include planning repairs out of season. However, remember to sign a contract for materials and labour in advance. Hospitality experts recommend accelerating the renovation, especially if a new hotel opens nearby. Otherwise, there is a risk of a lack of occupancy. Alternatively, you can lower your room rates to compete with your new property.