A Few Thoughts on Capital Improvement Plans and PIP’s
Ideally, capital improvements are part of an annual review along with a hotel’s budget and marketing plans. Here are a few thoughts (in no particular order) regarding prioritizing, budgeting, and scheduling capital needs – especially during a period of declining revenue?
- Mechanical and structural needs
- Replacements that could reduce maintenance and repair costs
- Maintaining brand standards
- Codes compliances
- Life safety issues
- Price value issues that could result in added revenue
When the industry is doing well “negotiating” a PIP with the franchisor is difficult. What’s the date on your hotel’s written assessment needs that was performed by the executive committee or your hotel’s management company?
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