Hotel Renovations: When to Go Big

Jon Peck | September 6, 2024

Most owners and prospective buyers try to reduce their hotel’s Capex spend associated with PIP or Renovation work and with good reason- to keep their investment basis as low as possible. When and How to “Go Big” on your Hotel Renovation However, there are scenarios below where owners may want to go bigger. The hotel is in a strong demand environment and underperforming the competitive set, especially if the hotel has “good bones” and most of the work would be interior. Owner has broader economic interests. For example, the hotel is or could be part of a mixed-use project and the hotel upgrade would improve the positionin...