Challenges, benefits of phased renovations

NATIONAL REPORT from ISHC - In hotel and resort renovations, the primary objective is twofold: to impart a positive physical transformation and assert control over the financial parameters. A successful outcome necessitates meticulously aligning design aspirations with budgetary constraints, thus striking a judicious equilibrium. At the outset, crafting a comprehensive roster of design objectives coupled with their corresponding budget allocations forms the cornerstone – the two must achieve a balance between profitability and creativity.

The determination of project scope, whether confined to checking items on a brand-prescribed Property Improvement Plan (PIP) or extending to the comprehensive reimagining and repositioning of a property, mandates the assembly of a proficient team. This collaborative effort, inclusive of ownership and management stakeholders, is integral for validating internal budgets and formulating a realistic project schedule and strategy.

From the vantage point of a seasoned hospitality designer, prior to initiating the design conceptualization, there needs to be a discerning evaluation of the client—considering their unique needs and capacities. Distinct disparities emerge when contrasting the objectives of an investment firm overseeing a portfolio of hotels with those of an individual owner. Corporate or institutional clients often exhibit a proclivity for refraining from imposing idiosyncratic preferences on the design, in stark contrast to individual owners who seek a more personalized imprint. Therefore, the designer must calibrate their approach to accommodate the client’s structural nuances and operational dynamics.

For intricate projects without in-house capabilities, the services of an owner’s representative or external project manager become imperative, supplementing the efforts of architects, interior designers, purchasing agents, and general contractors. Specialized consultants, ranging from landscape and food service to kitchen, spa, art, and engineering experts, may also be enlisted. With the project team assembled, the budget validated, and the scope of work defined, the team then collaborates to craft a realistic timeline, harmonizing with hotel management and operations.

In some instances, depending on the scale and scope of work, a temporary closure of a hotel during renovation may enhance efficiency. Although this strategy is efficient on many levels, it is often determined that the loss of revenue and staff during construction is not worth the savings in time and money. The prevailing decision often veers toward operational continuity to safeguard revenue and staffing. The dominant decision is generally to keep a hotel operating and producing revenue while under construction. While financially judicious, this pragmatic approach introduces formidable logistical challenges, requiring management to minimize disruptions to guests and the financial bottom line.

Developing and maintaining a minimally disruptive renovation project schedule requires the responsible team members to consider factors such as seasonal bookings, if applicable, funding availability, and the time needed to accomplish all the tasks thoroughly and successfully in the approved scope of work. 

Conducting a thorough assessment of the following points is advisable as they can severely affect timetables.

1. Availability of funding for the work
2. Evaluation or creation of accurate “as built” documentation
3. Practical schedule for concept, design development, and complete documentation
4. Timeline for review and approval of owners and brand (if applicable)
5. Time and cost for the construction and fit out of the model room(s), if applicable
6. Once approved, announcement and marketing of the coming renovation
7. Permit requirements and process
8. Qualification and bidding
9. Assessment of building limitations that could affect hotel guests and staff, such as sight lines, elevator availability and access, noise transmission, plumbing stacks, electric loads and zones, parking, etc.
10. Identification of minimally disruptive staging and trash areas
11. Type of work and hours permitted at the job site
12. If needed, temporary facilities for areas affected, such as food and beverage outlets, front desk, meeting rooms, etc.
13. Security
14.  Availability and need for assistance from hotel staff such as engineering and housekeeping
15. Strategy for the delivery/receipt of materials and supplies
16. FF&E bidding, purchase, manufacturing, and shipping times
17. Removal and storage (if applicable) of existing furnishings
18. Disposal and/or sale of existing furnishings
19. Logistics and time required to deliver and install new and/or refurbished furnishings
20. Participants and schedule to prepare and effect punch lists prior to final acceptance, sign-off, and re-opening

Careful consideration is also warranted for unforeseen contingencies, as supply chain and labor shortages, though trending downwards from the peak experienced during the pandemic, still pose potential challenges. 

Judicious planning is essential as timelines and costs for renovating and repositioning hotels and resorts continue to increase. Successful interior designs completed in operating hotels or resorts must be strategically planned to the tiniest detail, carefully considering the budget and outcome and the best, least disruptive path to achievement.

Jill Cole, ISHC, is the managing principal of Cole Martinez Curtis and Associates 

The views and opinions expressed in this column do not necessarily reflect the opinions of Hotel Investment Today or Northstar Travel Group and its affiliated companies.