According to the latest reports, there is a significant increase in the number of US hotels being renovated. A perfect example of this is the Hilton Garden located in Schaumburg, Illinois. Apple Hospitality REIT was selected to renovate this particular hotel, and if things go as planned, this will be just one of multiple hotels getting a much-needed makeover.
In a recent survey of 3,000 hotel owners and operators in North America, conducted by Cicero, over 40 percent stated that a major renovation of the property was planned over the next year. Another 28 percent said their hotels would be renovated within the next six months.
Although hotel renovations occur every few years in order to attract guests, during the recession the majority of hotel owners and operators put upgrades on the back burner. Now that the economy has stabilized, and with the hotel industry doing well with occupancy rates at 15-year highs at 65 percent, plans for renovations are moving forward.
According to Sam Cicero, Sr., founder of Cicero, the hospitality industry as a whole is now at all-time highs in rental rates and room occupancy. He added that in looking at the results of the survey, it was apparent that the highest level of planned short-term hotel renovations dated back to the mid-2000s. That alone shows how the industry has continued to improve steadily since the lows of the recession.
Cicero added that people who travel for business and pleasure want, but also deserve, the latest and newest when staying at hotels. Most importantly, travelers want connectivity, meaning after checking in, they want the ability to plug in and charge all types of mobile devices and equipment.
As for the Schaumburg hotel, Cicero will completely revamp the property, including 166 guestrooms, meeting space, and corridors. As part of the renovation project, Cicero will upgrade to modern furnishings and interior design throughout, consisting of fresh paint, new carpeting, window treatments, vinyl wallcoverings, and FF&E. The completion date for this project is set for mid-January of 2016.
Additional Survey Findings
Some of the other interesting things that came from the Cicero survey include:
- Of responders, 50 percent prefer to contact the general contractor by sending a request for qualifications, as well as a quote.
- After narrowing choices down to just a few general contractors, 37 percent of hotel owners and operators wanted a face-to-face interview. In addition, 21 percent of responders wanted the option of interviewing past clients.
- Almost 100 percent of survey responders agreed that staying within a budget and schedule were the most important criteria when selecting a general contractor.
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