Successful Management of a Hotel Renovation

By Samuel J. Cicero Sr. Founder, Cicero's Development Corporation | November 22, 2015

No matter how glamorous, there comes a time when every hotel requires renovation. Years of wear and tear, new fashion trends, and shifts in technology can prematurely age a property, leading to customer complaints and the need to lower room rates to remain competitive. Also, in this age of social media and online reviews, an aging property means lost revenue as travelers increasingly turn to the Internet for advice and not the hotel's website.

Of course, most brands in the hotel industry require their franchisees to conduct Property Improvement Plans or "PIPs" every 5-7 years, as well. Not complying with the renovation request for a PIP can result in a flag being pulled from the property.

This article takes you through the process of hotel renovation from a ground level perspective, moving in logical steps from Documentation to Quality Control to final project close-out. No step is more important than another; rather, each plays an equal contributing role in a successful renovation.

Project Documentation

The Project Charter

The project charter is the green light for the hotel renovation to move forward. Once the project charter has been assembled and approved by operations, activity can begin.

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Eco-Friendly Practices: Corporate Social Responsibility

The hotel industry has undertaken a long-term effort to build more responsible and socially conscious businesses. What began with small efforts to reduce waste - such as paperless checkouts and refillable soap dispensers - has evolved into an international movement toward implementing sustainable development practices. In addition to establishing themselves as good corporate citizens, adopting eco-friendly practices is sound business for hotels. According to a recent report from Deloitte, 95% of business travelers believe the hotel industry should be undertaking “green” initiatives, and Millennials are twice as likely to support brands with strong management of environmental and social issues. Given these conclusions, hotels are continuing to innovate in the areas of environmental sustainability. For example, one leading hotel chain has designed special elevators that collect kinetic energy from the moving lift and in the process, they have reduced their energy consumption by 50%  over conventional elevators. Also, they installed an advanced air conditioning system which employs a magnetic mechanical system that makes them more energy efficient. Other hotels are installing Intelligent Building Systems which monitor and control temperatures in rooms, common areas and swimming pools, as well as ventilation and cold water systems. Some hotels are installing Electric Vehicle charging stations, planting rooftop gardens, implementing stringent recycling programs, and insisting on the use of biodegradable materials. Another trend is the creation of Green Teams within a hotel's operation that are tasked to implement earth-friendly practices and manage budgets for green projects. Some hotels have even gone so far as to curtail or eliminate room service, believing that keeping the kitchen open 24/7 isn't terribly sustainable. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.