If you’ve been delaying your franchise hotel improvement plan, it’s time to roll up your sleeves.
With visitors’ plans shuttered amid travel restrictions, the hotel industry was devastated in the initial months of the COVID-19 pandemic. With reduced occupancy came reduced income and cash flow, ultimately allowing for approved delays in property improvements, as owners may have used allotted Property Improvement Plan funds for working capital or simply had less funding available to contribute to them. Some hotel brands were gracious with their franchisees during this period. According to Hotel Management, hotel chains offered PIP deferrals of 12-18 months, and in some cases, as long as 24 months.
Topics: hotel construction
With many COVID-19 travel restrictions in the rearview mirror, travelers are eager to make up for lost time and enjoy new experiences. Factor in the fading popularity of Airbnbs, and the hotel industry has a golden opportunity to capture new, eager tourists with exciting and authentic properties. After you’ve solidified the idea, researched the market, and developed your hotel business plan, you need to bring your hotel idea to life. And that takes capital. After all, the national average cost (according to Fixr) to build a hotel ranges from $13 million to $32 million. At the low end, you can build a motel for $7.5 million, while luxury five-star hotels can cost more than $60 million.
Topics: hotel construction
A decade ago, Airbnb disrupted the tourism industry, offering an alternative to hotel rooms when visiting other places. Travelers loved the concept of staying in a home and the flexibility Airbnbs provide. But, Airbnb’s glory days are over, it seems, as users are waking up to issues that can arise with these vacation rental sites – dirty accommodations, high fees, controlling hosts, and even safety. The backlash against Airbnb has been widespread, with viral TikToks putting issues on full display for the world.
Topics: hotel construction
What’s Next for Hotels: 4 Top Trends
Necessity may still be the mother of invention - but the shared experience of a global pandemic has accelerated invention’s implementation across the hotel landscape. “Much of what is top of mind now, like contactless technology, was already something we had well underway, but now it’s getting in market faster,” according to Brian Flick, vice president of operations for Compass Group, which saw the recent opening of a pioneering dual-brand Marriott project on Amelia Island, Florida.
