CapEx planning is something that theoretically comes up each year of a hotel’s life span. Some years the resulting CapEx from those capital expenditure plans are performed and some years they are purposely deferred. None the less, this yearly occurrence of the CapEx planning process tends to cause hoteliers to focus on a 12 month cycle versus a long-range (multi-year) management tool. This is unfortunate, since long-range Capital Expenditure Plans offer so much more information in which to base strategic decisions. [Read more…]
CapEx dollars do not come easy. If you are involved at the hotel level you realize each year that the property could have used more CapEx to meet the ongoing needs. Those in upper management constantly balance financial issues and also realize that there is not enough CapEx money to go around. For these reasons, processes should certainly be based on building Capital Expenditure Plans that avoid any form of waste. This directly relates to the dollars that are applied to CapEx projects, successfully setting schedules that do not excessively displace business and holding to well organized internal processes.
The following 3 items negatively influence capital expenditure programs and aggressively diminish effectiveness. [Read more…]
The past recession has been unusually hard on the physical assets of hotel properties! In the past, CapEx dollars may have kept your hotel fresh and compliant with guest expectations. However, several years of non-existent capital expenditures has now come home to roost.
Certainly any hotelier would want to correct issues that are negatively affecting guest satisfaction, destroying price-value and diluting guest loyalty! After all, it is difficult to grow revenue if a multitude of situations are driving business away. No hotel is immune from these issues as most hoteliers face situations such as these continually….even in a good economy.
As hospitality indicators are finally showing upward trends, the best solution in correcting tired FF & E (Furniture, Fixtures & Equipment) is to get a fresh look at your hotel. To accomplish this do a “walk through”. Do this using a note pad and while having two hotel associates (that are known for attention to detail) accompany you. [Read more…]
The good news is that this year’s show is well attended and the emotions of attendees and exhibitors are upbeat! I only made it through about 45% of the 900+ exhibitors yesterday. More today!
There were far too many interesting products for me to share on a short blog. However, I am highlighting one specific company from today….who is engaged in AUDIO-VISUAL. I do this because a large percentage of all hotels are CapEx challenged with this area. This company’s audio-visual products and services greatly enhance guest satisfaction.
Pictured in front of his HD Expo display is company president Jeff Loether, ISHC. His organization, Electro-Media Design, LTD is engaged in [Read more…]
During economic recessions, it is no surprise that hoteliers are forced to reduce spending. Even though this process generally affects all areas and departments of a hotel, it is always unfortunate when CapEx is one of the sectors affected with deep cuts.
Once economic recoveries begin to emerge, most hoteliers will soon start thinking about dusting off their CapEx plans. However, waiting to update existing CapEx plans until after a recovery has started is not recommended. Instead, updating and re-aligning strategies previous to an economic recovery is crucial. Using this proactive approach, the planning is properly thought-out and completely assembled for action before it is needed. Therefore, hoteliers can be prepared to quickly implement CapEx when economic conditions warrant such. This will allow quick action to differentiate between their product and the competition. To even further maximize the results, avoid making the following costly mistakes. [Read more…]