Renovation%20and%20Capital%20PprojectsFAC14

Renovation%20and%20Capital%20PprojectsFAC14 - season Why...

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Click to edit Master subtitle style 3/7/11 Renovation and Capital Projects Chapter 14
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3/7/11 What’s a Renovation? Asset Protection Timely maintenance and enhancement of hotel and resort properties Competitive demand Cycles of renovation
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3/7/11 Renovation Work on a property for which the benefits extend over a multi-year period Work on major building systems Work performed to reposition a property Work performed to meet government regulations Work performed to meet new market demands
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3/7/11 Where Does the Money Come From Cap X Cap EX Capital expenditures
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3/7/11 The Little Nell, Aspen Colorado 92 room hotel 20 years old $18 million renovation Closing Sept 7 for several months …. Through the winter ski season Room rates average $1200 in high
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Unformatted text preview: season Why would the owners choose to expend 3/7/11 Trends that influence Renovation Smaller hotel properties in different segments More choices for customers Customer expectations Mixed use properties New Business Models: Condo Hotels 3/7/11 Reasons to Renovate Aging equipment Major structural replacements F&F replacement Out of date design To increase market share and overall business To attract a new market share … business, resort, meetings…. . 3/7/11 Life Cycle of a Hotel New property Strong Perform ance New Competi tion Decline in Revenu e Market Function al Obsolesc ence Decision to Dispose of property or Rehab Respond to Current Needs 3/7/11 Chapter 14: To Be Continued...
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This note was uploaded on 03/06/2011 for the course HFT 4000 taught by Professor Brown during the Spring '11 term at FIU.

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Renovation%20and%20Capital%20PprojectsFAC14 - season Why...

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