Maximizing and Monetizing Every Square Foot
By Randy Shelly Executive Vice President, Hospitality, Shawmut Design & Construction | October 2022
As the hotel industry rebounds and evolves-according to the Lodging Econometrics Pipeline Trend Report, the total U.S. construction pipeline of projects is up 9% year-over-year, owners are finding ways to become more efficient and modify their service models.
Faced with increased cost of labor coupled with a decreased average of revenue per available room (RevPAR) that has yet to surpass pre-pandemic levels, owners are examining the effectiveness of their used-and unused-space, and how to reduce operating costs without sacrificing the guest experience.
Hoteliers have gotten creative with their revenue management strategies-including MCR Hotels adjusting its pricing structure to a la carte, charging for services and amenities-and there is opportunity for owners to view their properties with a new lens that benefits both the guest and the hotel.
Hotels are activating as much space as possible, maximizing every square foot to ensure that guests have options for dining and activities, while also providing the hotel with additional revenue streams. Dead, open space is being converted into revenue generators that attract both guests and locals alike. Waiting area space in the lobby is being reconsidered and transformed into a bar or grab-and-go station; rooftops are being activated with a restaurant, bar, or pool; basement space is being transformed into a fitness center or spa.
Whatever amenity a space is being transformed into, it is important that flexibility be considered so revenue can be generated 24 hours a day, seven days a week, 365 days a year. For example, a room that typically hosts breakfast in the morning can be rented out in the afternoon and then used for happy hour in the evening; a thoughtfully-designed raw space with the right systems infrastructure can transform from a meeting space to a private dinner room to a yoga or meditation area.