Deciding to Renovate or Convert Your Hotel
Does Your Hotel Franchiser Require a Property Improvement Plan (PIP)?
A PIP is a mandate that hotel franchises (Hilton, Marriott, etc.) place on hotel owners. Franchisers require franchisees to renovate their hotel typically between five and seven years to meet the brand standards and maintain competitiveness. The franchiser’s design team periodically visits hotels to assess their physical condition, quality of services, and other branding items.
After the visit, the design team develops a comprehensive renovation plan with a completion timeline for the hotel. The sale of a hotel to new owners usually mandates a PIP. If a franchisee decides to change the hotel brand, it requires a PIP. In addition, a lender may require a hotel buyer to complete a PIP to help secure financing for a hotel asset.
National Builders has extensive experience over the last 30 years working with owners to fulfill the construction requirements of their hotel PIP. If you’re facing a PIP project, we can help you.
Adaptive Reuse of Hotels
Adaptive reuse of hotels is another phrase associated with hotel conversion or hotel repurposing. With the demand for housing on the rise, converting hotel rooms to apartments presents a feasible option for hotel owners and developers.
Hotel adaptive reuse also describes a hospitality trend of reusing older buildings or sites for a new hotel. Rather than demolishing a building with historical value, developers preserve the structure and adapt it for hotel use. Restoring older buildings often comes with tax credits.
Creative adaptive reuse projects across the United States include transforming car factories, warehouses, theaters, and old bank buildings into contemporary hotels.
National Builders will help you evaluate an adaptive reuse opportunity. We have extensive experience assessing and reconstructing older buildings that require code conformance and mechanical and electrical upgrades to meet today’s technologies.