The Bare Essentials Of Repositioning Your Hotel
By Steven Belmonte CEO, Vimana Franchise Systems LLC | June 10, 2012
There are several steps that can be taken to ensure smarter decisions when it comes to repositioning your hotel in the marketplace. Industry vet Steve Belmonte shares these steps that he believes will help your hotel to thrive in this economy whether you choose to renovate, reposition or reflag.
Intro Paragraph: When weighing the pros and cons of renovating a property and/or reflagging and repositioning it, few owners and operators think in terms of extra room nights that need to be sold. Hotel owners and operators need to start "doing their homework". Steve Belmonte has put together 8 steps to get you on the road to success. From "shelving your ego" to "getting the maximum bang for your buck," following these steps can help you to make smarter decisions when it comes to either renovating or repositioning your property in the marketplace.
So your current franchisor wants you to spend $500K on upgrades? How many extra room nights do you have to sell to make an additional $500K in profit?
No matter what size or type of hotel you own/operate or what market you compete in, your answer most likely is "a lot more than I might be able to in today's competitive climate."
Ironically, few hotel owners and operators think in terms of the extra room nights that are needed to be sold when weighing the pros and cons of renovating a property and/or reflagging and repositioning it. This is just one reason why some renovations and reflaggings fail to recoup an adequate return on investment and why capital markets for such projects today often are deemed too risky. These and dozens of other "cancers" are blackening what otherwise undoubtedly would be a much-brighter profitability picture for lodging.
Due diligence means 'do your homework,' which includes many steps along the road to success: