Consistent maintenance or a short lived cash grab? Which policy is better?

Consistent maintenance or a short lived cash grab? Which policy is better?

I invite all you fellow travelers to think back to the hotels you have stayed in during the past year, and think about the following.

How many have been clean and well maintained to the extent that you overlooked minor shortfalls? At how many did you notice the lack of painting, worn carpets in the corridor or room, dripping taps, clogged drains, faulty HVAC, faulty light fixtures, TV remotes that do not work, torn towels, and the myriad of other things that can and do go wrong? In many ways you cannot place too much blame on those that come up short, especially in the independents, since resources are thin and all revenues are dedicated to expenses and in some cases survival.

I would hazard a guess that there are quite a few in the latter category, and in my opinion reflects a lack of understanding and short sightedness between a good product and marketability.

There are, in my mind, two types of owners and operators.

Over the course of my career I have had mostly good fortune in that my owners have been generous in providing the operational equipment that was needed, and the funds to keep my hotels in great shape for our guests.

These are the owners that understand that the key to satisfied customers lies not only in the service you provide, but in the physical product too. They support preventive maintenance, pass budgets for necessary replacements and ongoing maintenance and care about what the guest experiences. They and the management team make sure there are policies and procedures that take care to keep things shipshape. It is not just because that owners care about the state of their properties, it is that they understand that it allows for the sales and marketing to be able to succeed in their mission. It also in many ways cuts costs since those well kept hotels will have a much larger percentage of returning guests, and guests that are willing to pay good rates for what they perceive as value for their money.

On the other hand there are owners that, once having invested good money on a renovation, sit back and demand returns on their investment before any more funds are available for upkeep. Slowly but inevitable the state of the public areas, the rooms and the hotel systems get worn out, and an ever increasing number of guests notice this and take to social media to voice their concerns. Group business slows down, returning guests disappear and the rates spiral downwards in the fight for occupancy, while costs increase inexorably.

A well maintained and clean hotel will stay relevant all the time, it will keep its value and be able to compete against the competitive set in a consistent manner. Its’ reputation high, the management team, can concentrate on doing their job and getting guests through the doors at ADR’s that give the bottom line a glow and achieve budgeted targets.

Sure, it does cost more to keep a hotel in top shape, it does cost more manpower to clean and maintain, but it is vital to the consistent chance for success that is allowed for the operation. It will also mean that when the time comes for a more meaningful renovation it will also lower the total costs. I do not need to tell you that well kept systems and operational equipment will last for many more years.

In these times of cutthroat competition and the increasing OTA traffic, surely it is wise to at the very least level the playing field with a well maintained, well kept and clean property that allows your team to perform better? It will show in all areas, whether guest satisfaction, reputation, consistent ADR and of course occupancy. Your bottom line will be the better for your consistent investment.

Don’t let your property age badly. Would you rent a battered, rattling, badly maintained and dirty car from a rental agency?