Every hotel owner thinks about maximizing profits. Hotel remodeling is an opportunity to increase revenue per available room (RevPAR). Hotels need upgrades. It is essential to keep guests happy and comfortable during the renovation. Hoteliers must pay attention to facility upgrades.
To close or not to close
When you are planning for a renovation, the first thing that comes into the discussion with your hotel remodeling contractor is whether you are looking for a partial closure or full. Your hotel is your business. Therefore, keeping it open is the only way to continue earning profits as the hotel remodeling continues. However, if you plan for a full upgrade, it may be worth closing the hotel fully until you are ready to reveal the fresh look and new designs.
Reposition your business
Another factor that your hotel remodeling contractor wants you to consider is how exactly you want to change the style and face of the hotel. Keep in mind that ROI is the end goal. Since the major reason for hotel remodeling is to maximize the profits. Therefore, it is essential to plan things. Like, how do you want to renovate the rooms? How are you planning to change the rates? The business repositioning should combine sales, marketing, and guest management. Getting these departments together will ensure whether your renovation ideas are the right choice or not.
Focus on customer reviews
Now a day’s internet is accessible to everyone. Online reviews and testimonials are everything. They affect the bookings. Keep an eye on checking the most valued reviews and comments. When guests notice that there is renovation going on, they may complain. Although you are good at concealing the renovation, people will always notice. One bad review can turn away potential guests. Make sure to compensate, offer discounts and fluctuating prices during the renovation. Remember, the key is to keep customers happy.
Many hoteliers wait for the off-season to renovate the hotel. The off-season has lower demand and is flexible for renovation. The guest’s experience can be managed easily. They need to ensure the schedule of when the renovation will be complete. So that the grand opening can be planned, also, one can leverage the upgrade to target the guests. If your renovation is not timed correctly, it will affect the demand and ROI. One may lose their rebranding opportunity if there is a new hotel opened nearby by the time renovation is completed. Make sure the hotel renovation starts and finishes at the right time.
Consider group bookings
An important consideration of renovation is group bookings. If prices increase, it may be the right idea to end work with the contracts that no longer do well for your hotel business. Group bookings can be made for up to 18 months. Although, revenue and sales teams need to work closely throughout the renovation process. Incorporate the new hotel products and strategies into pricing decisions.
Make the most of renovation
The fresh look of the hotel allows for repositioning itself in the market. Many challenges arise during the hotel remodeling. But, the hotelier must ensure to address and overcome them. The hotel should strategize and determine the right time to relaunch the renovated rooms. Having a plan will help in having the right price strategy? In return, it will help in successful renovation.
Every hotel is different and has different needs. The best idea is to hire and seek guidance from hotel renovation experts. Contact Capital Hospitality Services (CHS) to enhance the value of your hotel even during the renovation process.