News for the Hospitality Executive
Property Improvement Plans or PIPS
by Dr. John Hogan, March 10, 2010
Property Improvement Plans or PIPS, are a reality to today’s hotel owners and management groups. If a property is part of a franchised system, dealing with PIPS can be an expensive proposition both at the time of sale as well as in continuing operations. The purpose of PIPs is to keep properties in compliance with all existing and new brand standards, as franchisors strive to maintain brand standards to protect their brands as well as the investments of all the other franchisees.
The cost of PIPs could be staggering if they seem to all come crashing down at once, especially if a property is not meeting all of its current standards at a time when there is a potential change in ownership. Almost all franchisors have a Property Improvement Plan system, because their goal is to maintain the quality of each of their franchisees.
"If you want to predict the future, create it"
In this second in a series of “HOW TO" columns titled HOSPITALITY CONVERSATIONS, I chose a topic that is of universal interest to all hotel owners: HOW TO SELECT THE RIGHT DESIGN FIRM TO REFRESH OR RENOVATE YOUR HOTEL .
I again reached out to qualified professionals in a nationally known company. Maryland based Jonathan Nehmer + Associates, Inc. is a multi-disciplined group with completed projects in the United States, Canada ,Mexico, India, China, Panama, Puerto Rico, Aruba , Bahamas, Bermuda and Brazil www.nehmer.com
I asked the following two questions:
1. What are the factors that hotel owners and management companies must consider to protect their investment and project the ROI of the upgrade or update project?
Through our Project Management experience, we have found that the best means of selecting a design team is through Qualification-Based Selection. This process means evaluating and choosing the best candidates by reviewing their experience with similar projects, checking their referrals, and calling their past clients before asking for a fee proposal.
Jonathan C. Nehmer, AIA, ISHC is a licensed Architect with expertise in all facets of architecture and interior design, design management, project management, and construction administration. His experience includes work as an owner's representative in the direction and management of commercial, institutional, residential, and hospitality projects.
Scott P. Rosenberg, AIA, LEED AP is a licensed Architect with more than
twenty years of experience in architecture and real estate development-related
fields. His design experience includes hotels, restaurants, retail
centers, office buildings, industrial, recreational, institutional projects,
and tenant improvements.
KEYS TO SUCCESS is the umbrella title for my new 2010 programs, hospitality services and columns. This year’s writings will focus on a wide variety of topics for hotel owners, managers and professionals including both my "HOW TO" articles, and a number of HOSPITALITY CONVERSATIONS.
Feel free to share an idea for a column at email@example.com anytime or contact me regarding consulting, customized workshops, speaking engagements ………….
And remember – we all need a regular dose of common sense.
Autographed copies of LESSONS FROM THE FIELD – a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES are available from THE ROOMS CHRONICLE www.roomschronicle.com, www.smartbizzonline.com and other industry sources.
All rights reserved by John Hogan and this column may be included in an upcoming book on hotel management. The opinions expressed in this article are those of the author and do not necessarily reflect the views of this publication
John Hogan is a successful hospitality executive, educator, author and consultant and is a frequent keynote speaker and seminar leader at many hospitality industry events. http://www.linkedin.com/in/drjohnhoganchache
Dr. John Hogan, CHA MHS CHE
|Also See:||Hospitality Conversations: Selling Your Hotel In a Sluggish Economy / Dr. John Hogan / February 2010|