When It's Time to Start Budgeting For Your Hotel Renovation

It’s easy to let an upcoming hotel renovation overwhelm you, especially when you’re thinking about the pending costs. Common sense would tell you that your busiest time (or peak season) is really not when you should start ripping down walls.

Before you begin any hotel renovation your first step must be to review your property’s occupancy trends from prior years to determine its off-season —this will be your ideal window to start renovating.

We’ve compiled a short list of tips to help you start planning for your hotel room renovation.

renovation photo reel

3 Ways to Begin Planning Your Hotel Renovation

  1. Define Your Project Scope
  2. Hire Experts
  3. Budget and Bid

If you’re ready to get the ball rolling, here’s what you need to know:

1. Define Your Project Scope

While this may seem like common sense, before the actual renovation starts you need to have a clear, well-thought-out plan and schedule in place to ensure your renovation stays on-time and on budget. If not well conceived and defined, issues are certain to arise. Planning can begin as early as a year (or more) before the project starts.

To determine scope, get your operations staff involved by asking them to provide their “wish list.” This list is typically driven by guests requests; implementing changes from this list will almost guarantee first decide your budget and timeline. Your budget will drive your scope and your schedule.

*Note: If you’re working with a brand, be sure you understand your brand’s requirements for design.

2. Hire Experts, They’re There for a Reason

Don’t try to act as your own general contractor, designer, or manufacturer, for that matter (unless, of course, you’re experienced/trained in the fields). Before the start of your hotel renovation, you’re going to want to hire a team of experienced professionals.

As every successful hotelier would tell you, in the hospitality industry, preparing for the unexpected is half of the job. When those unexpected things pop-up, you’ll want the right people working to make it right.

3. Budget & Bid

If you’re working with a procurement agent, they will likely receive multiple (optimally three) bids from different vendors for products, on your behalf. This will ensure you’re receiving the price for goods that aligns with your budget. A good procurement agent will monitor your budget throughout the life of a project.

*Note: After you’ve established your budget, setting aside a contingency fund of (5-10%), depending upon the complexity of your hotel room renovation will allow you to accommodate for the unexpected costs that will arise. And as any veteran hotelier will tell you, “expect the unexpected.”

Ultimately, You Needed To Start Planning...Yesterday.

In the hospitality industry, every night you’re not renting your rooms is a night you’re losing money. Don’t risk of getting stuck in tight deadlines, where mistakes can be made that will negatively affect your overall project and budget.

45-60 days. That is the amount of time you can expect a prototype review to take, depending upon the brand. If you’re working on a completely custom design, the process from design to installation can be many months, and sometimes even longer, depending upon the scale and complexity of the project. That is why it’s important to align yourself with a manufacturer who can educate (and set realistic expectations) on the process of custom design.

No two hotel renovation projects are alike there is no “one size fits all” answer to when you should start budgeting for your hotel’s renovation project. But, one this is certain, the earlier you start saving for your hotel room renovation costs, the better you’ll be.

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