When October occurs, the “ordering phase” for a hotel’s capital expenditure program can be considered complete. Waiting until this late date for items to be designed, specified, purchased, fabricated and shipped; pushes an end-of-the-year calendar date.
Not all is lost! Since most hotel business traditionally slumps from December to February, it still would be appropriate to use that time slot to perform and complete CapEx projects that prepare for the 2012 business.
So your strategy can be….welcome the guests back with something better!
With this being said, you should not initiate work on projects for December thru February until you have a developed a master plan! In that plan, use strategies that formulate a 2012 CapEx Plan aimed at improving guest satisfaction and promoting guest loyalty. To give a little help, the process is as follows:
- Assessment Of Current CapEx Projects – Review your 2010 capital expenditures to identify any projects that should be expanded into 2012.
- Evaluation Of Systems – Identify any new situations that surfaced in 2011 that will need to be addressed in 2012. Certainly it is natural to more focus on adding “glitz” to the facility, but failing mechanical systems, outdated technology, etc. adversely affect guest satisfaction and may need to take a serious position in the upcoming CapEx Plan.
- Revenue Enhancement and Competitive Issues – You will not have a shortage of these projects. In fact, you will labor over eliminating projects that you know are viable, yet other needs seem to have a higher priority.
- Pricing – Obtain preliminary bids and pricing.
- Finalize Your Plan – This is the time to ask the hard questions, look at the costs, run ROI’s, balance the financial expectations and discuss timelines.
Within the above process, you should identify a few capital expenditures that can be kicked-off and completed before the 2012 business picks up. These should carry impact and be very recognizable to the guest!
With a well thought-out CapEx strategy…..you and your team can…….
Welcome Your Guests Back With Something Better!