When Cicero talks, I listen

Three Rules of Renovation

Lodging’s current robust performance is creating a competitive environment when it comes to product freshness. The industry fundamentals have never been better, and these conditions are driving a flurry of construction projects, rebranding and conversion activity, and renovations of every scope throughout the United States.

In the last three years, an estimated 1.2 million hotel rooms have been renovated, representing more than 20 percent of the existing supply, Lodging Econometrics (LE) data reveals. According to Bruce Ford, LE’s senior vice president and director of global business development, the number of renovations will likely trend downward as strong hotel operating profitability discourages owners from making rooms unavailable while being renovated. However, for those hoteliers willing to take the plunge and make some upgrades, here are some key takeaways for making the best renovation decisions for your bottom line.

Rule No. 1: Property Improvement Plans Are Never Cost Neutral
When Cicero’s Development Corp. gets involved in a hotel renovation project, it typically starts with a call from an owner who needs to conduct a property improvement plan (PIP). During the conversation, they discuss the budget and scope of the project and how they can align with the owner’s business plan. “In all cases, we say, ‘Give a range of prices you want us to fall in between,’” says founder Sam Cicero. “It has to be a conscious business decision.”

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Renovations Impact Meetings Business

This is the third and last part in a three-part series written for Hotel News Now, looking at why hotels renovate, sacrificing guest convenience during a renovation and what happens after a renovation. PART 3 – June 20, 2013
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Minimizing Inconvenience During Renovations

This is the second part in a three-part series written for Hotel News Now, looking at why hotels renovate, sacrificing guest convenience during a renovation and what happens after a renovation. PART 2 – June 19, 2013
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Why Do Hotels Keep Renovating?

This is the first part in a three-part series written for Hotel News Now, looking at why hotels renovate, sacrificing guest convenience during a renovation and what happens after a renovation.  PART 1 – June 18, 2013
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Gaylord Palms Resort $50 Million Dollar Renovation 5/1/12

And the Gaylord Palms’ Gift to the Meeting Planner!   5/1/12

The Gaylord Palms makes the best of an unfortunate situation. Results are now apparent.

5/31/12 Update:  I am acknowledging the announcment that Gaylord Entertainment Company agreed to sell the Gaylord Hotels Brand and Management Company to Marriott International.

I was travelling through central Florida when I stopped in last month to see Ellen Reeder, Director of Northeast Sales at the Gaylord Palms Hotel and Convention Center in Kissimmee, FL. This Gaylord Palms is one of my preferred properties and Ellen had invited me to see the new changes made during this Renovation and upgrades that have been in progress since the last time I was there.
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