A Significant Increase in Hotel Renovations Will Occur in 2004 - PricewaterhouseCoopers Reports
U.S. Lodging Industry Will Spend $3 Billion on Renovations in 2004
In 2004, among changes to be seen in guestroom design:
- Better beds and bedding, in both comfort and quality of material
- televisions set atop low-lying dresser drawers or cabinets, replacing the traditional armoire or televisions mounted on the walls of hotel rooms to take advantage of their space-saving design
- adoption of local themes in exterior architecture, public space décor and restaurant themes (particularly in the upscale and upper-upscale hotels)
- high speed internet access based on comments from an increasing number of guests expressing this as an important amenity
- electronic "function boards" and directories and generally better signage
There will also be increased investments in guest history and yield management enhancements and links, and in another areas, employee training.
Rather than being totally market-driven, hotel renovations are in part result of capital budgeting calculation of a percentage of revenues. After record total revenue growth between 1993 and 2000, the hotel industry was in the fortunate position of having made significant capital investments in physical assets prior to the 2001 downturn. In 2001 and 2002, capital expenditures represented among the largest dollar reductions of expense and expenditure categories.
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