Research and Reports

Should your refurbish your motel or hotel?

22 Aug 2007

Resort Brokers

Motel Refurbishment Model

Many operators of hotels and motels are reluctant to improve their properties as they are often unable to ascertain any tangible benefits. Often when refurbishment is undertaken it is done on a piece meal basis and only scratches the surface of what is actually required. Thus Resort Brokers have devised a simple spreadsheet which requires very little input on your behalf in order for you to ascertain the viability of refurbishment. Refurbishment can be undertaken out of cash reserves, refinancing existing debt, or specific borrowing for the task at hand. The spreadsheet is designed as a guide only and Resort Brokers strongly recommends that you consult other industry professionals such as your accountant, financial adviser and bank manager before making any final decision. However this is a very useful tool in your decision making process and we hope that it encourages owners/operators to improve their property and business. Lack of refurbishment of existing operations is becoming a major problem in New Zealand and the existing stock is continuing to deteriorate. The contrast between much of the existing stock and new supply is becoming more noticeable and clients will begin to reject anything that is not up to scratch.