My hotel is underperforming should I do a renovation?
December 22, 2019|Hotel Marketing
Renovating a hotel is a challenging process that requires a lot of investment and time.
If you are a flagged hotel and your brand requires you to have a renovation, there is no question that you should do it.
If you are an independent hotel with the option to choose whether or not to do a renovation or a flagged hotel that is currently underperforming and is looking at a renovation to possibly increase revenues, pause for a second before you ask for quotations and look for loans.
Let us dig deeper into the problem.
Are you just losing market share because your property is not up-to-date or your pictures do not look good enough? Are you just losing market share because you do not have an existing paper-click advertisement campaign that is adjusted correctly?
Are you already following up with people on time when you get an inbound call? Have your friend or family members call your hotel today. Find out how long it takes for your staff to get back to them.
What kind of agreements are you sending out — do they already have an attrition clause in them or do they have a cancellation policy? Do you have the right agreements in place with all your third-party partners?
Is your SEO resolved? When you search your town for the hotels within a 25-mile radius, does your hotel show up on the top 5 results?
Some hotel owners might think that a renovation is a quick fix to low revenues. That’s usually not the case. Do your research and due diligence. Compare your current numbers with the last four or five years and see exactly what segments you are missing out on instead of putting all your money into a renovation.
These are some of the things you should consider before you do a renovation or else you run the risk of having a brand-new property with the same old problems.
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