Are You Renovation Ready? A Practical Guide for Hospitality Decision Makers

Renovating a hotel or hospitality space is not just about aesthetic upgrades—it’s a complex process that affects operations, guest experience, and long-term asset value. Whether the renovation is driven by a brand's Property Improvement Plan (PIP), aging infrastructure, or a desire to elevate your offering, careful planning is essential.

This guide outlines five key areas that hospitality decision-makers should consider when preparing for a renovation. Addressing each of these early can help reduce downtime, manage costs, and ensure compliance with brand and local requirements. 

1. Hospitality Design & Permits: Start With the Right Foundation

Design is more than choosing finishes—it's about creating a functional, code-compliant space that aligns with your brand’s identity and guest expectations. During the early planning phase, it's critical to account for local permitting requirements, which can vary based on jurisdiction, scope, and building type. Sometimes it is the requirement from the lender or insurance company to ensure code compliance for large scale renovations.

Many renovation delays stem from overlooked permit processes or zoning constraints. By conducting a thorough feasibility and compliance review before finalizing your design, you can prevent costly changes and keep your timeline on track. 

2. Procurement & Logistics: Managing Lead Times and Storage

Procurement in the hospitality sector presents unique challenges, especially with ongoing supply chain fluctuations. Items like custom case goods, lighting fixtures, and flooring often have extended lead times, which can impact your construction schedule if not planned properly.

Considerations for effective procurement planning:

• Anticipate lead times for FF&E and OS&E

• Choose suppliers familiar with hospitality standards

• Determine whether to store materials offsite or onsite

• Coordinate deliveries to align with phased renovation work

For properties that remain operational during renovations, onsite storage offers greater convenience and faster access to materials, helping streamline the renovation process with minimal disruption. 

3. Renovation Scheduling: Aligning Construction with Occupancy

Balancing guest satisfaction and construction efficiency is one of the most challenging aspects of hospitality renovations. A phased renovation plan that considers occupancy trends and operational needs can minimize disruptions and protect your revenue.

Common strategies include:

• Renovating by floor, wing, or section

• Scheduling around low-occupancy periods

• Restricting noisy work to specific hours

• Proactively communicating with guests and staff

Aligning renovation phases with forecasted demand helps reduce revenue loss while maintaining brand standards during construction. 

4. Property Improvement Plan (PIP): Understanding Requirements and Options

A Property Improvement Plan (PIP) issued by a hotel brand outlines required updates for compliance. However, not all items on a PIP are rigid—some may be negotiable based on budget, timing, or operational impact.

A detailed PIP review can help you determine:

• Which updates are essential vs. discretionary

• Where modifications or substitutions are allowed

• Opportunities to align PIP improvements with broader capital plans

• The potential for phased implementation to manage costs

Working closely with your brand representative and project team ensures PIP alignment while optimizing return on investment. 

5. Budgeting for Hospitality Renovations: Plan for the Full Picture

A comprehensive renovation budget accounts for more than materials and labor. It should include soft costs, contingencies, revenue impacts, and supply chain considerations. This holistic view allows for better decision-making and helps prevent overruns.

Key budget components to include:

• Permitting and regulatory fees

• Labor rate changes and escalation buffers

• Logistics and storage costs

• Revenue loss from room or amenity closures

• Procurement timelines and delivery fees

Maintaining an up-to-date cost tracker throughout the project can support better forecasting and in-the-moment decisions if adjustments are needed. 

Final Thoughts: Building Confidence Through Planning

Renovation projects in the hospitality industry involve many moving parts—each with the potential to impact your timeline, guest satisfaction, and ‘bottom line’. By addressing design, procurement, scheduling, compliance, and budgeting early and strategically, hospitality leaders can reduce risk and set their projects up for long-term success.

Whether you’re preparing for a PIP-mandated update or pursuing a value-add repositioning, this framework can serve as a foundational guide for informed decision-making.