Guest room makeover for a three-star hotel

If you were given a budget of $5,000, $10,000 or $15,000 per room to renovate your hotel, how would you spend that money? When three designers were given that project recently, they came up with some interesting ideas.  Here’s the challenge.  Designers were asked to renovate a room that is 20 years old in a three-star limited service business hotel near the airport.  Daryl Kish of Westmont Hospitality provided an owner’s perspective on their designs.

$5,000 per room

Designer: Harry Christakis, HCA Architecture

Changes made: Christakis spent one fifth of his limited funds on base building items.  The carpet had to go, he painted the ceiling, put vinyl in the washroom, added a new closet door and baseboards. 
Case goods were another big expense—he cut down the existing armoire and added granite (from China, due to cost considerations). He added an ergonomic chair, lounge chair and a new 32” LCD TV for $800.
The springs were shot on the mattress, and he added sheets, a duvet and a bed scarf—that accounted for another $606.
A new window treatment involved blackout  material on one side, and he painted the wood valence, all at a cost of $372.
Christakis also spent $330 on lighting and art.  And he saved $750 for the washroom, where he added a wall sconce, mirror and a curved shower rod.

Budget breakdown:
Base building items    $1,060.00
Case goods & soft goods    $1,870.00
mattress & bedding        $606.00
window treatment       $372.00
lighting & art           $330.00
washroom           $750.00
TOTAL:        $4,988.00

There were a  few other expenses to consider… removal and installation of new carpet; removal and install of new vinyl ; paint door and frame; move furniture for carpet installation; hardwire lighting installation; hang art work; install new toilet; install new faucet; install shower curtain rod.  Total for those expenses was $1,069.

Daryl Kish’s critique: The changes refreshed the room and made it feel open and roomy.  His suggestions included a larger desk surface, extension of the length of the credenza and addition of drawers.  Other suggestions included a full-length mirror for the closet and digital thermostat, switchplates and covers. 
His overall impression was that the renovation was largely defensive: guests are expecting such finishes to be the norm and there is a need to compete with new supply
Assuming 200 room hotel, Cost = $1 million.  They may be able to raise rates by $3 average.  For 200 rooms x 365 days x 65% occupancy x $3 rate increase x 80% flow-through = $114K increase to bottom line, 9 year payback
However, there is no choice but to renovate 20 year old room, regardless of payback
His conclusion: $5,000 won’t be enough to meet current brand requirements, so the renovation may still be a waste of money, and may largely have to be duplicated / redone in a couple of years.

$10,000 per room



Designer: Doris Hager, Hager & Associates Ltd.

Changes made: Hager & Associates aimed for a design that is modern, aimed at a young demographic, crisp, uncluttered and fresh. It’s close to the casino, so they added a touch of the entertainment element.

They kept the base building furnishings neutral, adding a punch of colour in the soft goods.

Hager & Associates added bed bolsters, a scarf and a box cover, rather than a bed skirt for the bed.  There were two choices of chairs, again adding some punches of colour.
They added new case goods, an LCD TV, and ergonomic desk chair with striped material on the seat.  Draperies were textured sheers with a blackout drape Carpeting allowed for a carpetted base and underpad.

Changes to lighting included two new floor lamps, nigh stand lamps, and new entry lighting.  In the washroom, they added a new vanity mirror. 

Budget breakdown:
Furniture        $2,725.00
Lighting           $905.00
Drapery            $822.50
Bed and bedding       $600.00
Finishes—installed    $1,546.00
Plumbing/Millwork    $1,005.00
Misc. (art, mirrors, etc.)    $1,900.00
Closet doors           $150.00
TOTAL:        $9,653.50

This price didn’t include shipping, furniture installation costs, warehousing, taxes, repairs to existing surfaces and reburbishment of PTAC.

Daryl Kish’s critique: The room looks modern, fresh, uncluttered and the design is well-thought out and easy to comprehend. He suggested that an airport location requires technology upgrades. His ideas included switching the desk to the opposite side and expanding the work space with a ‘L’ shape, and centering the TV with respect to the bed.

In terms of finishes, he liked the bright vinyl selection, and said the granite countertop adds colour contrast. The credenza, chairs and lamps are sleek, modern, high quality, and there are vibrant contrasting colours for the ergonomic  chair and accents. 
He suggested that the carpet colour may be too light, presenting operational cleanliness maintenance issues.  Similarly, end tables with legs present vacuuming issues. He also recommended that a more impressive headboard unit incorporating floating night stands will improve aesthetics, plus reduce housekeeping concerns, without increasing costs.  There should also be more focus on bed treatment – use four pillows instead of two to make a statement.

Kish also thought that the first priority should be bed quality, for high guest impact, and that a new mattress and box is needed at $650 per room.The tub needs to be refinished or they would need a tub insert for 30 year old room, also change toilet seat to give new impression.  He would also laminate guest room door $250 for brand new look
In conclusion, this is a modern room, which should compete with new product and largely meet brand standards or requirements. The design is an excellent foundation for discussion with owner.  Kish would re-prioritize by spending money on a new comfortable bed and more impressive headboard statement.

The reno cost $2 million based on 200 room hotel. This room should generate $8 more in rate.  With 200 rooms x 365 days x 65% occupancy x $8 rate increase x 80% flow-through = $304K increase to bottom line, 6.5 year payback
A $10,000 room will keep this hotel current for 5 years or more.

$15,000 per room

Designer: Joseph Pettiipas, HOK

Changes made: Looking at the original design Pettipas saw an unfinished closet, dated furnishings, unflexible air handling and a tired washroom.  Guest now expect WiFi, they want their room to be an extension of their office as well as a place to relax.  they want a large-access shower rather than a bathtub, supportive furniture (e.g., the ability to move a table/desk over the bed), flexible air handling, a refreshment centre, a bathroom with “new everything”, and new furnishings with a comtemporary, fashion-forward look.  This is what HOK provided.

Budget breakdown:
Mechanical        $3,400.00
Electrical           $650.00
WiFi and Flat Screen       $750.00
Construction (beverage
alcove, shower, closet door)    $4,200.00
Fixed furnishings    $1,600.00
Soft furnishings        $4,350.00
TOTAL:                   $14,950.00

This design did not include the operational cost of the WiFi, or installation, warehousing and taxes.

Daryl Kish’s critique:  WIFI is a coming brand requirement that supports the needs of the business traveller. The comfortable bedding provided a high impact. The Rain shower head is a high end modern improvement.  Overall, the timeless, neutral, crisp, clean decor will be long lasting.

Suggestions included more technology features including jack box, hard wired high speed, lighting mood/dimmer, CD, sound system, IPOD docking station, high tech phone.

Overall, the design had a boutique look and feel, potential to re-position to younger guest mix The budget may still be too low to entertain major construction (eg. converting tub to shower @ $2,000 per room), but it’s worth exploring on certain number of rooms.

This reno provides potential to up-brand property, will meet 3.5-4 star brand standards. The reno cost $3 million based on 200 room hotel. The room should generate $15 more rate by repositioning mix, brand, demographics 200 rooms x 365 days x 65% occupancy x $15 rate increase x 80% flow-through = $569K increase to bottom line, 5.25 year payback. The room will exceed competition and guest satisfaction demand for next  7-8 years.