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 Smart renovation projects require extensive planning, exploratory work, the right players, and proper execution to go off without a hitch. Fred Roedel III, co-manager of Roedel Companies and president of ROK Builders, shares best practices.
Team Work
Build an experienced team to assess the hotel’s performance and uncover opportunities for boosting revenue. Hoteliers want to ensure their product is relevant and maintained in first-class condition, but it’s imperative to identify how renovations will impact operations and your profit and loss statement (P&L). “Are we going to incur additional operating costs? Or will all that revenue we think we’re going to get fall away to the bottom line?”
On a Budget
Figure out what you can afford. “It’s not only how much are you willing to put in, it’s also how much do you have? Many people are fully loaded up on their debt, and they can’t go to the bank and borrow half a million bucks to renovate. Now it’s real equity, real dollars.”
Choose Materials Wisely
If your budget is $350,000, determine how you can work within those guidelines. As with any material, the cost of tile can easily go from $2 a square foot to $20. Look for alternate designs and materials that will make the project simpler and less expensive while still achieving your objective. “The hard part is saying, this is the look and feel we want, and I’ve got five options. That’s where the smart side of it comes in, with all the preplanning.”
Time and Effort
To meet or beat your deadline, lay out a detailed schedule that breaks down each task and who is responsible for executing it. Hire qualifying subcontractors and project supervisors to ensure effective implementation with limited disruption to normal operations. “Our objective with all projects is that we have zero negative impact to both the guests and operations because they’re equally important to us.”
Stick to the Plan
Communicate with operations during the renovation so they understand exactly what will happen each day. If you will need to make provisions for a temporary front desk, for example, that should be thought out in advance. “We could have the best plan in the world with effective use of dollars but if we don’t execute that plan very well and a bunch of people aren’t happy everything goes out the window.”
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