In order to keep a hotel aligned with current brand standards, hotel franchisors will periodically issue hotel owners a Property Improvement Plan (PIP) outlining required renovations and upgrades. PIPs are mandatory. If the hotel owner does not complete the PIP, the franchisor has the right to remove them from the brand entirely.
PIPs differ for every brand and hotel. Newer hotels might simply require small cosmetic adjustments, but older ones may need complete overhauls to their mechanical and electrical systems. However, hoteliers should generally anticipate a PIP every seven to twelve years.
Design components that are fundamental to the brand's standards include guest rooms and corridors, lobbies, business centers, swimming pools, and even landscaping. Modern PIPs also take sustainability into account so it is not unusual for PIPs for targeted upgrades to HVAC, plumbing and lighting that will save money in the long run while also protecting the environment.
THE PIP PROCESS
The PIP process often starts when a quality team member for a brand inspects a hotel to determine which areas, if any, need improvement. Once the franchisor issues a PIP, the hotel must comply with it in order to keep the brand flag flying, typically within 12 to 24 months.
The first step to take after receiving a PIP is to arrange a meeting with the brand reviewer to go over each PIP line item. A hotel owner can ask for waivers of specified renovations or an extension of the PIP time limitations. Waivers may also include postponing furniture replacement, retaining certain hard surfaces, or putting off customizations. Be aware that not following the franchisor’s PIP exact requirements can lead to delays in the renovation process and additional expenses, not to mention create tensions between the hotel owner and the brand.
Once the PIP’s final scope and timeline has been resolved, the hotel owner must make the changes required by the PIP to maintain their status as a franchisee. Now is the time to hire a general contractor, procurement firm, and interior designer/architect to finish the PIP's items. Responsibilities will need to be divided -- such as specification, purchasing, installation, and construction -- among the different parties involved. Afterwards, the construction, design, and FF&E quoting work can begin. A submission detailing the PIP's material and product specs, as well as descriptions or illustrations of suggested minor modifications, will need to be created for the brand to review. Each brand has unique guidelines for this submission. Following approval of the submittal by the brand team, those with procurement authority can begin to place vendor orders.
All franchise hotels require periodic property improvement plans (PIPs) that can demand significant capital investment. Cicero Construction Group has collaborated with virtually every major hotel brand in maintaining their hotels up to brand standards. We have expertise managing various design and procurement scopes as well as intricate PIPs. We'll work with you to finish your hotel renovation on schedule, on budget, and with unmatched efficiency.
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