Hotel Owner April 2017 | Page 41

QUALITY IN TOURISM > when an inspector calls When an inspector calls… Refurbishment is often a touchy subject with hoteliers; not only the hassle and cost of managing a refurb project, but also whether it is really necessary. DEBORAH HEATHER, director of Quality in Tourism talks about refurbing and how relevant it is to your business. Deborah manages a field force of more than 40 assessors, who each grade around 300 properties a year, ensuring that they are safe, clean and legal A lthough not formally a part of a cost to a return can have a massive suites, adding new facilities (when inspection, recently refurbished impact on the bottom line. The benefits relevant) and if possible, improving the hotels often outperform their of a proper, planned refurb include footprint of the room or creating new unrefreshed counterparts, both in positive reviews and customer loyalty, rooms from unused space. This does terms of their grading and their bottom lower overall long-term maintenance not of course mean you can leave the line. As an owner or manager, it is easy costs, increased property value, room completely untouched for seven to become blind to the scrapes and opportunity to increase room rates or years, and hoteliers should also have scuffs that appear on hotel paintwork, tier room prices more substantially, a refresh and deep clean programme but to a first-time or irregular customer, increased turnover, increased for rooms, that addresses scuffs and they can stick out like a sore thumb. So profitability and potentially even scrapes, identifies aspects which need too with your inspector. commercial expansion by using existing an upgrade and makes repairs when spaces smarter. I remember famously necessary for example cracked tiling. For any business, there are usually One of the most common two key drivers for refurbishment; a major London hotel invested many the first is to keep the hotel looking millions in a top-to-bottom renovation, hesitations that our assessors fresh and bright, ensuring that the which involved closing the hotel for encounter is the short-term impact bumps and bruises it sustains from many months. Working in hotels at the on RevPAR and the potential impact guests don’t leave it looking tired; time, we were all astounded, but the on other guests. In terms of RevPAR, and the second is to take it beyond day the business reopened, it had a it is all about careful planning and the days of mundane magnolia. Most seemingly effortless 38% increase in management; being as specific as don’t have a formal refurbishment turnover and a whopping 90% increase possible before even starting work programme with a rolling schedule in profitability. Another few years later helps to minimise the timeframe in of main tenance and revamp, increased the property value alone which work is completed and of course instead taking an ad hoc stance to by 80%. I appreciate these are big helps offset the loss of earnings. upgrading the interior of the hotel. numbers to go with big properties, but Similarly, if your focus at the same time Understandable, but nevertheless a still, they are scalable and even better is to increase the value, tier or rate of tactic which overlooks the potential you don’t have to commit to closing the room, then it should be well worth business case for refurbishing. down to achieve them. the upgrade in the medium-term. Commercially, upgrading the Best practice in the industry With regards to other guests, it is property should not be recognised suggests a full refit of each bedroom all about managing expectations and or isolated as a cost, but should every seven to twelve years, which becoming familiar with their behaviours. instead be viewed as an investment. should include replacing furniture and For example, completing works during It may seem like simple semantics, but furnishings (or restoring period pieces), the day, but not starting anything noisy psychologically, shifting the idea from redecorating, upgrading bathroom until after 10am helps to limit the impact April 2017 www.hotelowner.co.uk 41