Franchised chain hotel owners feel pressured by mandatory Product Improvement Plans (PIPs) according to a survey conducted by The Refinishing Touch. The survey, conducted in Q4 2011, highlights that following the economic downturn and decreased availability of bank loans in 2009 and 2010, many hotel owners are continuing to face challenges to meet mandated investments and improvements from brand owners.
PIPs are used by chain hotel operators to ensure all of their lodging assets are maintained through consistent renovation projects, standardized with strict approval and execution processes. The survey revealed that cost commitments are by far the greatest worry of hotel owners facing the reality of a 2011 PIPs, with 72% admitting financial worries, and almost a third (32%) citing the fact they face “more pressing concerns” than PIPs.
Other key finding of the survey revealed:
- Just over half (57%) or respondents did admit that they had experienced some leniency from corporate franchisors regarding implementation of PIPs
- Nearly two-thirds (61.5%) of managers believe that the travelling public is unforgiving of lapses in renovation during the recent recession, with only 38.5% stating that their guests showed sympathy
- Just under three-quarters of respondents think that competitiveness between brands has increased now that more renovation projections have gotten underway
- Nearly every manger surveyed (91.3%) disagreed that traditional methods of bidding for design and renovation projects, known as ‘design/approve/bid/build’ had gone away, with 8.7% saying they thought the change was only temporary
Mario Insenga, founder and CEO of The Refinishing Touch, said: “It is understandable that many chains suspended PIPs during the toughest economic times, but equally a brand cannot afford to be judged by its weakest properties. Now that PIPs have once again become a key factor in brand re-organization and improvement, general managers and franchise owners need to find smarter ways in which to spend their limited budgets on renovating and updating rooms.
“Despite the challenges, consumers will not settle for second-best when spending their hard-saved dollars on accommodation. Professional, on-site refinishing and re-upholstery is an excellent solution.”
The Refinishing Touch, a world leader in refurbishing and asset management, offers quality, competitively priced, environmentally safe on-site nationwide refinishing and remanufacturing services, including armoire modification and stone, upholstery and fabric acquisitions. The Refinishing Touch holds more than 30 years of experience in the hospitality, government and education industries.
For more details on The Refinishing Touch’s expertise, and the benefits of refinishing, please visit www.therefinishingtouch.com or www.therefinishingtouch.com/blog. For more company updates follow @RefinishTouch on Twitter.
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About The Refinishing Touch
The Refinishing Touch is a world leader in on‐site environmentally safe and sustainable furniture refinishing, re-upholstering, armoire modification, and EPA and OSHA TV recycling for private and public organizations. Through its Touch Textiles division, it provides eco-friendly indoor and outdoor fabrics that complement its portfolio of materials, such as granite and quartz, as well as a range of furniture hardware fixtures in a range of finishes to offer a one-stop service to its clients.
To date, the company has transformed over 1.5 million rooms of furniture, preventing the equivalent of approximately two million hardwood trees from being sent to landfill.
With clients in the government, hospitality and university sectors, The Refinishing Touch enables environmental and sustainability best practices while reducing spending by up to 80%. Long term clients include: The White House, The Kennedy Center for Performing Arts, US Department of Justice, US Congress, US Department of Defense, US Military and Coast Guard, Hyatt, Marriott, Wyndham, Hilton, IHG and Starwood plus a number of top universities. The company was founded in 1977 and is headquartered in Alpharetta, Georgia.
The Refinishing Touch has been recognized by the US General Services Administration with its Evergreen Award for innovative environmentally friendly practices. www.therefinishingtouch.com