A property improvement plan (PIP) is a strategic initiative seen in the hospitality industry that helps bring a hotel property into compliance with the latest brand standards. When a mandated Property Improvement Plan (PIP) comes through, many hotel owners and hospitality industry experts wonder what the best course of action is. Should they let an experienced general contractor handle the brand standard hotel upgrades or engage the services of a property management firm?
Expert Recommendation on Hotel PIPs
Partnering with a property management firm may turn out to be more expensive than hiring the services of a general contractor. Property managers excel at day-to-day operations—leasing, resident services, and maintenance, not major capital projects. PIPs, by contrast, require careful planning, deep construction expertise, and a clear-eyed focus on cost control and schedule performance. That’s why it is recommended to consider the services of employing a trusted hotel renovation company before you greenlight your next PIP.
Key Factors to consider before making your Choice
Let us look at some of the most essential points to think about before deciding the best course of action for your Hotel PIP:
Expertise Beyond Daily Operations
Property management firms focus on maximizing occupancy—not managing complex construction projects. PIPs, whether in hospitality or multifamily, demand different capabilities:
- Construction planning
- Navigating brand standards and codes
- Coordinating trades across occupied buildings
- Managing vendor relationships
An experienced hotel PIP contractor or project manager brings the right team, systems, and relationships to ensure smooth execution without disrupting your NOI.
Budgeting Accuracy and Cost Control
Management firms rarely have in-house construction pricing expertise and need to find an external agency. The result? Owners often overpay—or face endless change orders—when a PIP is run internally.
In contrast, a seasoned hotel renovation company will:
- Deliver an accurate pre-project budget
- Identify hidden costs early
- Negotiate realistic brand requirements
- Optimize value engineering
It is advisable to price your PIP with a contractor first to understand the negotiating leverage.
Cost Effectiveness
Engaging the services of turnkey hotel renovation solutions typically results in 10%–20% cost savings compared to letting your management firm run the project.
Why? Construction managers:
- Leverage stronger trade relationships
- Minimize overhead and markup
- Reduce unnecessary scope creep
- Deliver tighter project timelines (reducing lost revenue)
Having an expert manage the PIP protects your capital—and keeps more dollars in your pocket.
Minimizing Operational Disruption
For the hospitality industry, noisy or obtrusive construction can destroy guest experience, thus affecting revenue. A seasoned hotel renovation turnkey contractor is adept at phasing work and orchestrating logistics.
- Noisy work is restricted to short windows
- Guests see no contractors
- Smart sequencing preserves occupancy
Protecting Asset Value
With the travel industry booming post the pandemic phase, hotel owners executing strategic PIPs can outperform the market. The right construction partner helps you:
- Exceed brand minimums
- Future-proof your design
- Build for durability and wellness trends
Their deep knowledge of hotel interior redesign services and hotel decor renovation services positions your asset for long-term success.
Marketing the Upgraded Asset
A well-executed PIP is a great marketing opportunity and can totally relaunch your hotel property. An experienced contractor will help you prep the asset for a successful re-launch:
- Professional photography
- Updated web presence
- Brand-compliant marketing materials
While using your property management firm may sound convenient, it’s rarely the most cost-effective or strategic way to execute a PIP. Partnering with an experienced general contractor such as Renu will ensure a stronger ROI, lower costs, and better outcomes of the renovation. When it comes to choosing a PIP partner, choose based on trust, expertise, and a proven ability to protect your investment.
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