The Financial Impact of Hotel Renovations

Laurel Keller | December 7, 2016

by Laurel A. Keller, MAI and John Burke The story is a familiar one. A hotel that formerly outperformed its competitive set is now struggling to maintain market position. Rate and occupancy penetration indexes are headed in the wrong direction, and online reviews regularly contain comments such as "needs a refresh" or "feels dated." Even if the hotel's brand hasn't issued a mandatory property-improvement plan, completing a renovation may be financially worthwhile. Signs your hotel needs a renovation While several factors need to be considered prior to planning a renovation, the following are signs that it may be time: Declining penetr...