Looking at the Differences Between New Hotel Construction and Hotel Renovation

If you’re planning to bring a hotel property to your market, you’ll want to look at the pros and cons of purchasing and renovating an existing facility and building a new hotel from the ground up.

New Horizon Construction Services builds and renovates hotels throughout the Groveland, FL, area. Here are some considerations.

Elements Common to Both Types of Projects

Whether it’s a new build or a major hotel renovation project, there will be many elements to manage. A few examples:

Planning: This can include feasibility studies, budget analysis, teams and work crews, marketing campaigns, architectural drawings, the purchase of insurance and more.

The general contractor: Ideally, you’ll want a single person or entity overseeing the work. A general contractor with experience in daily project management is crucial to staying on top of the project and ensuring that work progresses as planned.

Materials: New hotel construction will require the procurement of everything from building materials and furniture to window blinds, carpets and coffee makers. A renovation project will likely require fewer materials. 

Codes and regulations: Renovations and new builds must meet local building and safety codes, so you’ll need to work with a contractor and project manager who understands code compliance in your area. Your contractor will also likely handle the required permitting.

Remodeling Surprises

Your hotel construction contractor will be looking at and working with virtually every area within an existing hotel property. This means that he or she may find some issues, such as:

• Certain parts of the hotel not up to code
• Damaged areas hidden by carpet, paint, wall treatments or possibly entire walls
• Irregularities in electrical, HVAC, plumbing and other systems that must be addressed

Granted, the hotel will have received a building inspection prior to sale, but the building inspector isn’t going to be nearly as thorough in looking “behind closed doors” as your contractor will be. It’s important to be prepared for the unexpected in a hotel renovation project.

Cost

The costs of new construction can be high and difficult to manage for some investors. Renovating an existing hotel can be much less costly. However, with a new build, you’ll have 100% control over every aspect of the property, including creating the elements that fit into your brand and image. With an existing hotel, you’ll have to work with what’s already there.

Business Disruption With a Hotel Renovation

If the hotel can be completely shut down during the renovation, that will solve the problem of disruption of daily services. If you want to keep the hotel open, your building contractor needs to work closely with hotel management, keeping those leaders apprised on the work phases and creating as little disturbance for guests and employees as possible.

An Untested Location With a New Hotel Build

Purchasing an existing hotel property means you’re purchasing its recognition and revenue history. With a new hotel – even if it will run under a known brand – you have no history. You’re starting from scratch in a new location and are hoping your advertising and marketing efforts will attract travelers.

Find an Experienced Hotel Construction Contractor

The contractor you choose for either a rebuild or a renovation project should be experienced in this type of work. Look at some of the projects the contractor has completed and get references that you can follow up on. It’s essential to ensure that the contractor understands the specific requirements and challenges of your project.

New Horizon Construction Services has worked in hotel construction and hotel renovation for more than 15 years. Let’s sit down and talk about your plans, and we’ll tell you exactly how we’ll make your project turn out just the way you want it. Our extensive experience ensures that your vision is in capable hands.

Reach a hotel construction professional at (407) 574-2164. You can also use our simple online contact form. We’re ready to discuss how we can bring your project to life.