SPECIAL REPORT
Auberge Resort Collection in October 2020 unveiled the transformation of the Mayflower Inn & Spa in Washington , Connecticut .
Pebblebrook Hotel Trust ’ s Skamania Lodge in Columbia River Gorge , Washington , added a zipline course , hiking trail , outdoor pavilion , treehouses and an axe-throwing venue to broaden the appeal of the once-conference center .
venue to broaden the appeal of Skamania , which originally was a conference center .
PITFALLS , CHALLENGES The most obvious pitfall for executing on a conversion would be overpaying , Kennealey says . “ You can ’ t fall in love and talk yourself into a property ,” he adds .
Similarly , a plain vanilla hotel with no factors separating it from the competition , a crowded market or a situation where a competitor can easily renovate and steal share are bad signs . Retaining a competitive advantage from a facilities
standpoint “ is tricky in select-service and extended-stay because it ’ s easy to build ,” Kennealey adds .
In the Middle East and Africa , unlike much of the rest of the world , travel demand and new construction remain robust , says Guy Hutchinson , CEO at Rotana Hotel Management Corp ., Abu Dhabi . While conversions are not its main focus , Rotana has seen increased opportunities for projects , especially among independent assets in the 3- to 4-star category .
An important consideration for investors , Hutchinson argues , is what upgrading or joining a brand will cost versus potential returns . Often owners don ’ t fully grasp the soft costs — signage , training , recruitment — of a change .
A reality check is important for any developer or owner looking to convert a property . “ You need to be realistic about the segment that box can fit in ,” Choice ’ s Nee says . Timing and budgeting are also crucial , and Choice provides a detailed plan of any improvements and upgrades required up front , so owners will fully understand the scope . To avoid any glitches in the process , “ we strongly suggest , in this day and age of supply chain issues , that they put together a responsibility matrix on the property level ,” Nee adds .
Bricks and mortar issues often are manageable , Hutchinson says . But overcoming an entrenched culture is often more of a challenge . “ Investors convert for a reason , not to post the same results . The biggest mistake is leaving the management in place ,” Hutchinson says .
Taking over an independent property , especially a very unique asset , requires a different mindset , as well . “ You need a team that
62 hotelsmag . com May 2022