More than forty percent of hotel owners in the United States and Canada are planning a major property renovation requiring a General Contractor (GC) over the next year, with 28 percent renovating their hotels in the coming six months.
This is according to a survey conducted by Cicero's Development Corp., a property renovation contractor specializing in the hotel lodging industry. Results underscore the continuing optimism of the hotel industry which is currently enjoying occupancy rates hovering at fifteen-year highs of 65 percent.
"The best gauge of hotel owner confidence is whether or not they are willing to invest in a needed renovation," said Sam Cicero, Sr., founder of Cicero's Development Corp. "Our survey showed the highest levels of planned short-term hotel renovations we've seen since the mid-2000's and demonstrates that the hotel industry continues to improve at a steady pace from recession lows."
Cicero's surveyed approximately 3,000 hotel owners/operators to gain better understanding of their perspectives on such issues as: property renovation timelines; criteria in selecting a GC, and price versus quality.
Other findings from this year's survey include:
50 percent of respondents prefer to contact a GC by sending both a Request for Quote (RFQ) and a Request for Qualifications.
Once they have narrowed down the group of potential GCs, 37 percent of hotel owners want to interview the project team face-to-face. Twenty-one percent ask to interview former clients.
When it comes to final criteria in selecting a GC, nearly all respondents put "ability to deliver within budget and schedule" as their number one concern, followed by project experience and price proposal.
Eighty-seven percent said "no" to the question as to whether a higher priced GC would be disqualified if they successfully met all other criteria.