How to Plan Your Hotel Renovation in 2023
Things are constantly evolving in the hotel industry due to the pandemic and disruptions to the economy and supply chain. If you’re planning a hotel renovation in 2023, staying up to date on these changes is vital so your project can run smoothly and with as little delay as possible.
In this post, you’ll learn how to plan your hotel renovation in 2023 and what Innvision recommends to help your FF&E project be successful.
Hotel Renovation Planning in 2023
As you plan your hotel renovation in 2023, you must consider these four components: pricing, timelines, supply chain, and brand requirements.
As 2022 comes to a close, we are finally seeing vendor pricing stabilize through the end of the year. Although inflation is slowing, it’s still rearing its ugly head and we should expect more vendor price increases early in the new year.
With that in mind, if hotel franchisees have a PIP (property improvement plan) they must complete, it will benefit them to purchase this year to take advantage of 2022’s lower costs. If you must wait until 2023, the outlook is that FF&E pricing increases will be less frequent and that manufacturers’ prices, once quoted, will hold longer than they did in 2022 – which, in a few cases, were for only seven days.
Franchisees must ensure they have a good handle on the anticipated project timeline with their general contractor. In 2022, GCs have faced an unusual number of challenges, especially ones related to the supply of labor and materials. Unexpected delays have impacted renovation schedules and made it more difficult to align the delivery of FF&E with when the receiving team needs it to be there.
Looking ahead, transparency with the general contractor, architect, design, and procurement teams at all times will be imperative for a successful project. We believe project delays will continue to be more likely at the beginning of 2023, just as they have been in 2022. The factors causing delays should improve in the second half of next year, but it would be wise to prepare to be flexible and have a backup plan if and when things don’t pan out as expected.
While global supply chain issues are easing in some areas, we anticipate challenges through the first half of 2023, especially with the Chinese/Lunar New Year happening in the first quarter. The hospitality vendor community is still experiencing delays in receiving raw materials to complete finished products overseas and domestically.
Although we can’t tell exactly how quickly it will come, we anticipate continued improvement in the FF&E supply chain within 2023. Elevated shipping costs should continue to decrease, as well. But placing orders sooner rather than later will be a good idea next year so products have a better chance to arrive in time.
Hotel brands have been relatively lenient with renovation PIPs in 2022 because of the pandemic. However, with hotel room rates and occupancy in a much better place, those days may be over in 2023. Going forward, brands will be less likely to allow their franchisees to delay their PIP completions. As a result, we are beginning to see older PIPs requiring more architectural and design help, which impacts timelines.
The combination of a higher volume of PIPs with more architectural and design work needed leads to hotel brands getting busier and design submittal reviews taking longer. With this in mind, in 2023, it would be wise to estimate that brand reviews will take 30 days or longer to complete.
At Innvision, we work closely with our clients to anticipate and plan the timeline ahead, which influences the products and manufacturers we recommend. Our dedicated logistics coordinators actively manage purchase orders’ production and shipment to help you stay on schedule. We provide weekly progress reports and we’re quick to offer solutions to the inevitable challenges and hiccups that tend to occur, some of which are unique to renovation projects. So, if you’re ready to begin your hotel renovation project, contact us today!