Renovating a hotel is no simple task. Depending on the size of your property and the project scope, they can take years. So why do hotels do it? It’s simple: hotel renovations provide enormous revenue opportunities down the line.
Renovating your hotel periodically maintains standards and keeps you up to date with changing consumer tastes and expectations.
In this post, we’ll explore the benefits of hotel renovations and how you can maximise revenue post-renovation with technology. We’ll also include real-life examples of how some of our clients drove revenue post-reno.
When should you renovate your hotel?
Have you ever walked into a hotel room, only to be met with a musty smell, 80s-style furniture, and mould in the bathroom? It’s an experience that taints your overall opinion of the hotel – even if the rest of the property is stunning.
Hotels typically renovate every five to seven years (give or take). They do this to ensure guests get the best experience possible, address wear and tear, and increase revenue potential. That includes what they can smell, hear, and see (sensory experiences like smell are important).
So, what are the signs your hotel needs a do-over? Look for cracks in the walls, signs of mould, stained carpets, creaky flooring, or damaged fixtures. Guests will let you know if they think your hotel is due a renovation, so keep a close eye on your reviews and suggestion boxes.
But renovations don’t always mean a complete overhaul. There are three types:
Refurbishment: Refurbishment involves updating or refreshing elements of your hotel without making significant structural changes. This renovation type focuses on cosmetic improvements such as painting, replacing carpets, updating furniture, and refreshing decor.
Basic renovation: Basic renovations involve more substantial updates compared to refurbishments but usually do not involve major structural changes. This may include upgrading amenities, renovating bathrooms, installing new fixtures, or updating technology systems.
Complete renovation: A complete renovation, also known as a full-scale renovation or overhaul, involves comprehensive changes to the hotel's design, layout, and infrastructure. This type of renovation typically includes extensive construction work, such as demolishing and rebuilding sections of the property, reconfiguring spaces, and upgrading all aspects of the hotel.
11 benefits of hotel renovations
Renovating your hotel, whether it's a refurbishment, basic renovation, or complete renovation, has numerous benefits for your property and business.
Enhance guest experience
The guest experience is arguably the most important part of running a hotel business. Keeping your guests happy means better reviews, more bookings, and increased revenue.
But as tastes and technology change, so will your guests’ expectations. Keep your hotel fresh and up to date to address this challenge. Upgrades in amenities, decor, and technology enhance comfort and convenience. And that means a memorable and enjoyable stay for guests.
Increase occupancy rates
It’s common for hotels to experience a surge in demand after a renovation. Travellers like refreshed and updated accommodations.
This increase in popularity translates to higher occupancy rates, maximising revenue potential and profitability for the property.
Gain competitive advantage
The hospitality industry is competitive. Renovations give you a competitive edge by setting you apart from outdated competitors. With modern amenities, stylish designs, and improved guest experiences, renovated hotels attract more discerning travellers who seek quality and value during their stay.
Drive revenue
Sure, renovations cost a lot. But as the adage goes: you have to spend money to make money. With a bit of careful planning and strategic investment, renovations don’t have to break the bank.
Renovations contribute to revenue growth through higher room rates, increased bookings, and additional sales of upgraded amenities and services.
Improve brand perception
Renovations elevate your hotel's image and brand perception, signalling a commitment to quality, innovation, and guest satisfaction.
A refreshed appearance and modern amenities create a positive impression among guests and industry stakeholders, strengthening the hotel's position as a desirable destination for travellers.
Enhance operational efficiency
Renovations go beyond cosmetic improvements to address operational inefficiencies and infrastructure upgrades. Renovations improve operational efficiency, reduce maintenance costs, and enhance staff productivity.
How? Instal energy-efficient systems to streamline workflows and optimise space utilisation to save money and time. Your workforce will probably thank you, too.
Attract new markets
Renovated hotels have the flexibility to target new market segments and demographics. A 2023 HubSpot report revealed the rising popularity of blended travel (a combination of leisure and business travel). Global spending by travellers combining business with leisure is predicted to reach $360 billion by 2027.
Cater to this new blended travel trend with state-of-the-art meeting facilities or trendy design aesthetics and tech-savvy amenities.
Increase property value
Renovations add tangible value to your hotel property, making it more attractive to investors and lenders. Command a higher valuation with upgraded amenities, modern designs, and improved revenue-generating capabilities.
Be more sustainable
The climate crisis is at the forefront of a lot of people’s minds. Booking.com reveals that 76% of travellers want to travel more sustainably and 43% say they would be willing to spend more on sustainable options.
Sustainability is likely something your guests and MICE clients are likely thinking about. Appeal to eco-minded guests by incorporating sustainable materials into your renovation plans.
Boost employee morale
Creating a positive work environment for hotel staff, boosting morale, and job satisfaction are vital for a healthy business.
Updated facilities, ergonomic designs, and improved technology systems enhance productivity and efficiency. In addition, modern employee amenities demonstrate your commitment to its workforce's well-being.
Adapt to market trends
Renovations help you stay ahead of evolving market trends and consumer preferences (like the rise in sustainable travel).
Integrate cutting-edge technology, incorporate wellness amenities, or embrace experiential design concepts to ensure that the hotel remains relevant and attractive to today's travellers.
5 strategies to drive revenue after a hotel renovation
Once your renovation is finished and you’re fully open for business, your job is to show people how amazing your new and improved spaces are. This is your opportunity to get creative with marketing and sales to maximise bookings and capitalise on your property’s renewed appeal. But how?
Get a photoshoot booked in
No matter the marketing activity, you’ll need high-quality images to show off your new space. Hire a professional, well-rated photographer and capture as many angles of your renovated spaces as possible. You could even capture drone footage of the entire property from above!
Your photographer will know how to make the images pop but take time beforehand to plan the photoshoot. Consider the best time of day for natural lighting, make a list of areas and angles to capture, and make sure to prep the property.
If you have renovated your event spaces, capture these with different seating setups such as cabaret or theatre style. This will help event planners get a good idea of your spaces before they even visit.
Update your pricing
Modernised and updated facilities or rooms offer guests more value. Perhaps you installed monsoon showers in guest rooms or added a new steam room to your spa.
This is your opportunity to update your pricing model to reflect that value. Set higher room rates in line with what your competitors are offering to maximise revenue and make your renovations worthwhile.
Market your renovations
Once you have your brand new photos, it’s time to update your marketing strategy and content to showcase your renovated spaces. Start by updating the photos on your website and online travel agencies (OTAs) like TripAdvisor or Booking.com.
Create an organic and paid social strategy to build excitement among your audience while the renovations take place. Focus on the new and refreshed experiences awaiting guests.
Update your Cvent Supplier Network profile
For MICE business, update your Cvent Supplier Network profile to reflect the changes to your property and its meeting space. Event planners will want to know (especially if they’ve held events at your property before) what’s changed and what they can expect now.
“We had an updated profile on the [Cvent Supplier Network] after we finished our renovation. So our marketing team spent a lot of time getting a renewed and updated profile of our product and the hotel. We have signed a contract for an additional three years on our CSN Diamond listing because we do think that this is one of the best lead sources for our hotel.”
Csaba Gyimesi, Director of GC&E, Hilton London Metropole
Lean on floor plans and 3D diagrams
Updating your floor plans and 3D diagrams to reflect changes to your property is essential after a renovation. Accurate, to-scale diagrams show guests and event planners exactly what they can expect when they visit your property.
“The hotel's just undergone a refurbishment and the beauty of the Cvent product is we could immediately load all our new floorplans, all our photography. But what is really unique about the property is that everything is on one level. So for us to be able to show a client how easy it is to load in is amazing. And of course that cuts down the costs for everybody.”
- Liz Watson, Commercial Director, Hilton Birmingham Metropole
Is it time for your renovation?
Renovations are costly, but worth it in the long run. Updated guest rooms, facilities, and event spaces result in better guest experiences, increased occupancy, and higher revenue.
But reaching your post-reno potential means devising a well-thought-out strategy. This will ensure you drive enough revenue to make your renovation well worth it.
Need more post-renovation marketing inspo? Discover eight effective tips to market your property.
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