Planning Ahead
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But on closer inspection, it turns out there are a number of traps for the unwary, and the right approach to fit-out and refurbishment can pay dividends, both in the avoidance of unnecessary spending and in high rates of occupancy – and therefore, revenue.
Space Studio is a leading specialist design company operating in the hospitality, retail and commercial sectors in New Zealand and internationally. Its director, Vee Smit, points to examples of refurbishment that highlight what can be achieved within the budgets of individual operators.
"We recently undertook the refurbishment of a three-star hotel in Fiji, the Naviti Resort. It caters largely to families with young children, so the demands on the spec are high. Space Studio took the brief, reviewed the site and assessed what needed to be replaced in each room. We then created a mock-up refurbished room and attached a pricing to that.
"Frequently, property owners are not in a position to do a full refurbishment all at once, both because of the cost and the need to keep rooms available to meet demand, so a gradual, rolling refurbishment, keeping as many rooms as possible in commission, is a desirable strategy.
"In the case of the Naviti Resort, based on the mock-up and projected costs, they made the decision to start with replacing furniture elements, followed by an upgrade to the lighting and bathroom vanities, at a total cost of NZ$5,000 per room.
"Specifically, the Naviti Resort retained the existing artwork, and the beds were in good condition. However, the rooms were designed to contain a queen bed and a single. They adopted our suggestion that the single bed be removed and replaced with a sofa bed, which immediately improved the look of the room by making better use of the space, and eliminated the cost of beds in addition to seating.
"Much of the furniture was very dated and quite damaged because of the high number of child occupants, so we designed a coordinated, durable package including flatscreen TVs and a smaller TV cabinet to make the room look bigger. We also suggested a new paint colour scheme that complemented the existing curtains, which didn't require replacement.
"As part of our service we provided an itemized list with pricing, and the operators were able to prioritize what they wanted to do. For instance, they can plan to replace the bedside lamps in a year's time, and can start budgeting for it now. This approach means that every time they spend money, they're spending it well."
Ms Smit says property owners need to have a clear idea at the outset of what a room will look like when the refurbishment is complete, and should expect this when consulting a professional designer. "The initial outlay of paying for a specialist designer's time will be money well spent, and operators should receive advice on the best materials and textiles and a full visual and full costing.
"Our role is to marry what the operators want to achieve with the resources they have available. We look at the space and see what alterations will give you the best bang for your buck. In this respect, the big elements are artwork and bed coverings, and these are good places to start."
An all-too-common mistake by operators trying to economize and fit a property out themselves is that they invest in furniture that has not been made fit for purpose, resulting in costly premature replacement of room items.
"One of the most important aspects of hospitality design is that the furniture and materials have been designed for commercial use," Ms Smit says. "We often find, when embarking on refurbishment projects, that the wrong drawer runners have been used, handles are falling off, metal finishes have started to rust, bed coverings are fraying and pilling, and so on.
"Spending a little extra at day one, to get the right guidance and the right products and materials, pays off. There are lots of practical elements that operators need to consider – that finishes are durable and washable, that the products are hard-wearing and fit for purpose. People don't treat hotel and motel rooms with the care that they do their own homes – it's amazing how often a lamp will be knocked over or a hot drink put directly on a wooden surface – so the furniture and finishes must be appropriately tough and durable."
Operators should tyre-kick the furniture they are considering, and seek out specialist suppliers to the accommodation industry, rather than retailers, for several reasons:
• It is not necessarily more expensive to use a specialist – you may be able to get a package put together that is as competitive as retail but with better quality and fit for purpose items
• Continuity and surety of supply – when buying from a retailer, furniture lines may be discontinued and replacements unavailable, while specialists can ensure that the exact items chosen can be replaced even years later
• They can advise on use of their products – a specialist will stock lamps, for instance, which use fluorescents and LEDs and are thus more economical over time
• You will have access to people who manufacture the product, so buyers can be more specific in the finishes and finer details they choose (such as handles, patterns, engraving), while not paying retail
• Operators can be confident they're spending their money as wisely as possible, and making a long-term investment in the property
Ms Smit says specialist designers and furniture makers will provide suggestions that fit within the available budget, and because of their familiarity with the industry, designers know which providers are good and which are to be avoided.
As for design trends, Ms Smit says operators should not be afraid to make their mark, and there are smart things they can do to set themselves up for future refurbishment.
"We're finding that clients are bolder about using colour and pattern, and if you have a base colour in neutrals in the initial design, this leaves plenty of scope to change bed covers and artwork during refurbishment. When it comes to artwork, having one big piece which makes an impact is often better than several little pieces (and less expensive). With paint, you don't need a single colour, and a repaint is a quick and easy way to refresh a room, with remedial paint jobs as needed."
When it comes to refurbishment, it is small details that add up, in both impact and cost. The composition of upholstery fabric may seem minor, but fabric composition is critical to wear and cleaning. The gold standard for upholstery is a fabric that passes the 'Martindale Test' of 10,000 rubs – that is, 10,000 rubs in a hotel room.
It is also important for operators to bear in mind what people look for in a room. "The image of a room sells the property," Ms Smit says. "Look at your website – do you have shots of the rooms? Are they dated? Are they good photos? Properties with high levels of occupancy need to refurbish every four to five years, and the best operators treat it as an ongoing investment, and reflect what they have done in their market to drive custom.
"The Regal Palms in Rotorua has done exactly that. Investment in fit-out is reaping the benefits of high occupancy, far higher than the industry average."
How can operators know they will see a return on investment in refurbishment? Ms Smit says the occupancy rate tells the story, with a well-presented room supporting repeat visits and positive reviews.
"The key is making it a long-term investment. Plan to do some element of refurbishment each year, and budget for it – then you're not faced with a mountain.
Finally, Ms Smit says the ideal refurbishment strategy would look like this:
• Set your refurbishment budget per annum, and be realistic about it;
• Undertake a critical overview of what you have, to help determine what you need;
• Be clear about what you want to achieve – this is where specialist advice can be helpful;
• Develop a plan for aesthetics and costs, and review it on an annual basis;
• Execute budgeted items annually.
