Examining the cost efficiency of renovation work

Once you have secured funding and your hotel or bed and breakfast is up and running, you will have to ensure your rooms and other facilities are consistently well maintained and presented. Occasional repairs and refurbishments are part and parcel of operating a hospitality establishment, but as a business owner it is always prudent to assess each maintenance job and redecoration scheme before you begin to determine how cost-efficient the project actually is.

The rooms are of one of the most important aspects of any hospitality business. They need to reflect high standards and offer cleanliness, convenience and comfort. If a hotel or B&B is going to succeed it needs to provide quality facilities, and it stands to reason that the rooms will need redecorating at least every couple of years. Poor quality accommodation leads to bad reviews and inevitable loss of custom, which is something you definitely want to avoid.

If you refurbish public spaces like foyers and reception areas, it may not immediately increase your occupancy rate, but examining the cost-efficiency means considering how much business you may lose out on by failing to improve their appearance. The entrance to your premises is the first thing people see, and if the appearance is less than impressive it can drive away business and render any room refurbishments redundant.

Locating the target areas is important. Most people expect an en suite bath or shower room these days. If you have any rooms without these facilities, they should be at the top of your list for refurbishment. Even if the work means you lose rooms you can be sure of appealing to more guests if you can offer them their own private washroom facilities. You can examine the financial benefits of room conversions by calculating the reduced income from bedroom loss against the extra amount you can generate by offering the rooms at an increased price.

There are a few key factors to consider when thinking about large scale refurbishments. You need to look at the number of bedrooms you will give up to build larger suites, the lost income from those rooms, the extra occupancy you expect as a result of the work, the time it will take for the new rooms to recoup the money you will spend and finally the lost revenue during the period your rooms are unavailable.

Remember, you do not have to undertake all the work at once. You can move from room to room and gradually upgrade without losing too much business and disrupting your guests. It is important to find the right balance between offering quality facilities and ensuring the cost-effectiveness of each renovation project. If you need advice on any aspect of hotel, B&B, guest house or equestrian finance, we are here to help you – just get in touch for further information.