The time is now to schedule your hotel’s next PIP
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.
Further complicating the PIP process, pent-up product demand has hit the hotel industry hard, creating a short supply of materials including foam for seating, lumber, and steel, Hotel Management reported last summer.
But with stabilization in the supply chain, the worst of COVID-19 behind us, and expired PIP deferrals, hotel owners have returned to implementing their PIPs. Hotel PIPs happen every 6-10 years, so if you’re working on your plan now, it’s the first time you’ve gone through this process in a post-COVID world. It may feel overwhelming, as a lot has changed in the world since your last PIP. Today, technology in hotels is more important than ever; often facilitating touchless and contactless services. Opportunity is abundant, especially with Airbnbs declining in popularity.
The current surge in demand for international inbound travel certainly makes it challenging for hotel owners to focus on PIPs while tending to an influx of guests. According to the U.S. Travel Association, this surge will start to slow in 2023. This projected slowdown could be a great time to schedule elements of your PIP that impact your hotel the greatest. And the time to schedule it is now.
As you face this PIP process, just remember: Continuous change equates to continuous improvement. Today’s travelers demand the best, so get to work so you can wow them with your property’s updates.
Topics: hotel construction