Brand Mandated Updates: Exploring Cost Effective Methods
By Fred B. Roedel, III Partner & Managing Member, Roedel Companies, LLC | April 01, 2012
The past three years have been some of the most difficult ever for our industry. Everyone from Owners to the Brands has had to defer a number of investments in a variety of areas. As the industry recovers the Brands will be diligent in not only making sure all of their hotels are in first class condition, but also up to speed with the latest brand standard mandates. It is important for us as owners that the Brands have this diligence so our investments are maintained and protected. Likewise it will be important for Owners to invest in brand mandated updates to insure their property is a relevant and integral part of the brand and to make sure their hotel is in the right position to take advantage of the improving marketplace. As with any investment it is critical to develop a well thought out effective plan. Here are some thoughts on cost effectively addressing your brand mandated update programs
Develop a Solid Plan Outlining your Objectives and Standards
First, make sure you clearly understand the objectives and critical elements of the mandated upgrades. Once you clearly understand the critical elements you will be able to manage your particular plan for more effectively.
Second, regardless whether the update program is large or small; take the time to clearly outline your objectives for time, cost and quality. Completing this relatively simple exercise is one of the simplest ways to stay on track throughout the design and implementation process. It will also be the basis by which you review alternatives that ultimately affect the overall cost of the project.
Third, define the investment amount. No one knows the economic elements of their hotel better than its Owner. We all know what we can afford to invest and we all have the ability to determine the right investment based on our own operation. It remains a positive environment cost wise from the construction perspective. There is no doubt that as time goes on construction related costs will begin to rise, simply because they have been so depressed for so long. So it may happen that more can be achieved now than a year from now on the same investment dollars. But what is so important in the development of your overall outline and plan is to clearly define the investment budget.
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