4 Smart Hotel Renovation Ideas that will Increase Revenue
As time marches on, an older hotel can easily fall into a time warp. They have that dated appearance with faded exterior paint, tired carpeting in the hallways and room decor that hasn’t changed in the past three decades. While renovating a hotel can be costly, so is doing nothing. Older hotels that haven’t been renovated in more than ten years have to significantly cut rates just to compete with other nearby properties. Also, the longer an hotelier waits to renovate, the costlier it will be.
In order for a hotel to effectively compete in today’s market, it has to be trendy and have that “wow” factor. Just look at the online reviews for similar properties that have undergone renovations and you will get an idea of what guests are looking for in a hotel. Some of them may even have been guests at your property in the past. An investment in the right renovations can elevate a two-star hotel up to a four-star property that attracts guests willing to pay market rates and above for available rooms. Equally as important, occupancy rates can go from below 50% to above 90% substantially increasing revenue. This can accelerate the return on investment for your hotel renovations.
Hotels are all about the guests so when renovating your hotel focus on the guest experience with these 4 smart hotel renovation ideas that will increase revenue:
Since, the exterior of a hotel is the first impression a guest will experience when they arrive at the property, it is one of the most important renovations a hotelier can make that will increase revenue. Renovating the hotel grounds should include custom landscaping with well-manicured lawns, trees, shrubs and colorful flowers that complement the natural surroundings and create a warm and inviting environment. Updating the façade with an exterior insulation and finishing system will help protect your renovation investment. In addition, renovating parking areas and walkways, installing LED exterior lighting and modern signage and windows will also serve to enhance the guest experience.
Lobby and Common Areas
Once a guest arrives at the hotel, they will enter the lobby to check-in making a mental note of their surroundings. This is often the point where a guest will decide whether or not they like what they see. When renovating the lobby and common areas it should be inviting with generous multi-purpose open spaces using natural lighting and materials with coordinated walls and flooring, plenty of comfortable seating and well appointed furnishings and art work that highlights the local area. A good example of this is the Hotel Indigo in Los Angeles that was recently featured as one of the most beautiful hotel lobbies in America in U.S. News and World Report.
Renovating the guest rooms is a smart way to increase revenue per room and occupancy rate at a hotel. And from the moment the guest walks through the door, the room needs to resonate with a “wow this is really nice” factor. This is the one area of the hotel where hoteliers should pay careful attention to the details. The guest rooms should not only be functional, but comfortable as well with a just like home feeling. There is nothing like Formica countertops, shag carpeting and worn out draperies that date a hotel. In fact, many hotels are replacing carpeting and draperies in guest rooms with hardwood flooring and shutters or blinds because they are much easier to clean and maintain. The guest rooms should also include modernized bathrooms, luxurious pillow top mattresses with quality pillows, an HD television display and Wi-Fi.
Unfortunately for some hotels the restaurant and bar is a money loser rather than a revenue generator. But it doesn’t have to be that way. With a smart and appealing renovation, the hotel restaurant and bar will not only serve as an attractive dining and entertainment spot for guests, it will also attract patrons from the local community. And that is the key to quickly turning around any under-performing hotel restaurant and bar.