to acquire a vacation asset with medium-term financing . And finally , branded- and serviced-residences with flexible terms are debuting in the main cities with great success .
Reformulation , reformulation and more reformulation would be ideal for some hotels aiming to survive and have success in this new challenging environment . This article discusses the main aspects related to this “ reformulation ,” considering the architectural , economic , branding and business orientation of the properties . I will bring the Brazilian / South American vision of the industry to the fore , including multiple existing lodging formats in the region . I will begin discussing initial experiences refurbishing and repositioning rooms and meeting spaces in Brazil , the main regional market .
EXAMPLES OF HOW BRAZIL IS DRIVING
BUSINESS BY CREATING THE “ ROOM OFFICE .”
THE FIRST STEP : THE NEW “ ROOM OFFICE ”
Some hotels are taking out beds in some rooms and converting them into working spaces to be rented on a daily , weekly and monthly basis . It is a relatively simple operation that is perfectly synergistic with the rest of the hotels ’ activities .
As the leader in the region , Accor is ahead of the market introducing the “ Room Office by Wojo ,” already in operation as a key test in some hotels in São Paulo . They researched their own client base and discovered that 79 % responded favorably to the idea of converting hotels rooms into flexible working spaces . Fully , 55 % said their main motivation was to rush from the home-office , followed by having a proper “ corporate ” infrastructure , a quiet and silent working space and high-speed internet . An integrated F & B package , coffee machines and printing facilities were also well ranked as reasons to choose this Room Office service .
Accor designed three categories – Luxury , Midscale and ECO – and have developed these facilities in Pullman , Adagio , Novotel and Ibis brands in the São Paulo region . They are planning for 120 Room Offices in their more than 300 hotels in the region by the end of 2021 .
New partnerships had to be created to provide internet and TV services for monthly clients , IT support and other technological services . The first numbers indicate an average cost of around US $ 1,200 per room for this transformation , while expecting to obtain rates around 15 % lower than typical hotel room rentals . Also , they verified a reduction in the costs of room maintenance and supplies .
Atlantica Hotels , the second biggest Brazilian hotel company , has also converted one suite of a Comfort Inn to a working room and is still in the process of further launching the concept .
Basically , this model transforms traditional hotel rooms in to working spaces with low investment , as well as expectations for increased occupancy and F & B income . It also expects a reasonable discount in the rates , probably just during the launching process .
It remains unclear how consumers will accept these new room formats , but considering the locations , the diverse type of product available and the new necessity for these flexible working spaces , the forecast for support is enthusiastic .
This seems to be among the first shy steps of the long and winding road of hotel ’ s reformulation .
May / June 2021 hotelsmag . com 17