Nationwide, there are around 10,000 hotels that require ongoing maintenance and upkeep. Instead of being daunted by this task, the hospitality sector must do more to protect its existing assets through ongoing investment. This approach is almost always a more cost effective and sustainable strategy to keeping custom while attracting new guests.
Therefore, the question should not simply be: what can we build next? Instead, the sector must make ensure that the buildings we already have work harder and remain relevant for longer, particularly as guest expectations continue to change.
We must start by rethinking what we mean by ‘refurbishment’. Refurbishment does not have to suggest starting again with major building works or significant interior overhauls. Instead, a more effective approach would be smart, targeted intervention in key areas before they become an issue.
While it’s easy to think that hotels built in the 2010s are relatively ‘modern’, in truth, their interiors, energy performance and guest experience may be falling short of current standards. A review of these at-risk assets, which should be performing well on paper, is essential to ensuring that they remain both relevant and competitive.
As recently as the 2010s the hotel sector saw a significant boom – with a consistent annual revenue growth of around 4% per available room between 2010-18. This was primarily driven by the ‘budget’ sector, with brands such as Premier Inn investing significantly in this area – including 28 new hotels in 2010 alone.
What the sector could not have anticipated is a cocktail of market forces, economic events and rising operational costs – alongside the entry of the likes of Airbnb into the market which offers a booking and guest experience that many hotels can’t replicate.
Despite this, it is essential that we now draw the line between genuine quality and novelty in design. While it’s important to take changing tastes into consideration, comfort, intuitive layouts, durable materials and good-quality finishes have greater longevity. The objective should not be to endlessly chase the newest hotel opening, but to create places that continue to work well for guests.
Therefore, proactive asset management and maintenance should be undertaken early, rather than as a rescue exercise when reputations have already taken the hit.
That means strategic interventions that improve on both operational performance and physical build upgrades. While some providers may be tempted to defer on these smaller ‘tweaks’, early investment means that we can address what would become a significant or costly enhancement further down the line.
In our recent refurbishment of Edgbaston Park Hotel, for example, we upgraded our reception desk and luggage room, alongside enhancing bedrooms and bathrooms to improve the guest experience. This required only minor construction works, strategically planned for the greatest possible impact with minimum disruption.
We identified the areas where the greatest guest benefit would be felt, rather than overhauling the entire building. Aside from extending the life of the existing environment, these small changes will have the greatest impact by improving the way the building works and the guest experience it provides.
This approach also means recognising what already functions well – and not making changes for the sake of it, meaning that budgets are spent wisely.
While developers may be tempted to tear down buildings and start afresh, there are both ecological and cost benefits to refurbishment. Firstly, light touch, regular refurbishment can overall reduce landfill waste while preserving a building’s embodied carbon and ensuring ongoing efficiency.
But it also is more cost efficient for a business to re-invest in its assets. The build timelines are often shorter, meaning that hotels can stay open for longer and therefore continue to generate returns. The strength of refurbishment is that it often brings together commercial and environmental interests.
Ultimately, refurbishment should be about longevity. The strongest hotels will not necessarily be those that reinvent themselves according to the latest design trend, but those that understand what guests value, recognise when their buildings are beginning to fall short and intervene at the right time.
The future of the hospitality industry will be shaped by not only the hotels we build, but what happens to the thousands of properties we have. By prioritising quality over novelty and treating refurbishment as an ongoing investment rather than an eventual necessity, we can create hotels that remain commercially relevant, comfortable and sustainable for much longer.
By Tom Dodson, Chief Operations Officer at Better Green Living
