Introduction
Problem identification
It can be noticed that the hotel is working since 1980 and the interior design is out of date and the equipment life is ended now. Therefore, renovation is needed. It can be analyzed from the competitive environment that the hotel needs to be renovated to meet the changing market demands and update the entire building to make it more attractive for the customers. In addition, the XYZ hotel needs to update their offerings. The reason is that customers’ demands are increasing, and the technological access has successfully changed the lifestyle. It is the reason that the in-room services also need to be changed and further developed in a positive manner. Furthermore, the challenges should be faced and solved within the minimum period.
Objective and Performance Standards
The objective of this renovation is that the work should be completed within an assigned period without impacting the total revenue. Also, the performance standards should be designed and achieved. Also, the hotel should become a center of attraction for its customers as well as preference for the tourists.
Action Plan
For XYZ hotel, some major renovation needs to be done. Also, restoration is also important for the growth of the XYZ hotel. Therefore, while renovating the hotel there are few points that needs to be considered. First of all, it is necessary that preliminary project list should be created it will help to choose renovation project costs and benefits. The action plan must include the identification of the required and appropriate facilities and services (Ventovuori, Lehtonen, Salonen, & Nenonen, 2007). The selection of the goods and reasonable equipment’s provider is required, and the construction phases need to be finalized.
The construction phase must be designed considering the latest models. In addition, it is also necessary that during the construction or renovation phase the customer services shouldn’t be stopped. The reason is that it may impact on the overall revenue of the hotel. However, it is possible that the operations can be minimized during the renovation period (Pizam, 2012). For example, while renovating the guestroom, corridors, lobby and public restrooms the hotel operations should be closed, however, during the renovation of hotel restaurant, and outdoor parking the operation should remain continue.
Project Manager Responsibilities
The project manager will look for the appropriate contractors who will be able to manage the hotel design requirements. The design development and construction documents will maintain the quality of the work and it will improve the renovation speed (Hassanien, Dale, & Clarke, 2010).
Major Challenges during the Renovation Process
There are some challenges that can impact the renovation process. First of all, the existing wall coverings needed to be changed and when they were removed the wall cracks come in the notice. In addition, a great extent of mold damage can be discovered on the walls. In order to deal with the mold and cracks special attention is required so that the estimated renovation period will not extend. In addition, the walls cannot be rebuilt as it is expensive and it will consume too much time.
Solutions to the Challenges
Considering the solutions for the challenges it can be said that the use of the effective methods can solve the problems. The most cost effective solution would be to seal the cracks by using the dense deck so that the gap can be closed. For that, smoke seal spray is the best option to solve this problem (Chon & Maier, 2009).
Cost of Renovation
While considering the need for renovation the most important question is that how much budget it will require and how much it will cost. Therefore, the cost of renovation needs to be decided first. XYZ hotel's renovation will cover the inner and outer part finishing touches of the entire hotel. The other important thing is the budget of renovation as any work will not push through without the availability of the budget. The reason is that cost of manpower, materials and services etc. will cost a good amount and for that a fixed budget is required.
The hotel renovation budget for XYZ hotel includes the funds required to renovate the guestrooms, corridors, lobby, public restrooms, restaurants, and outdoor parking. The budget also provides detail of individual expenses and fund requirements in accordance with per item cost and a total number of items. The total of budget reveals a value of $462,050 that shows the overall renovation expenses.
The results of the payback period explain the duration of time that is required by XYZ hotel to collect the total renovation expenses. The results show that the hotel will be able to collect the initial investments after 2 years and approximately 7 months (i.e. satisfactory). The XYZ hotel will be able to earn profits after it the year 3.
The calculations for the net present value explain the worth of the investment. The analysis reveals that the net present value for the renovation of the project is positive which means that the XYZ hotel must execute and invest in the renovation. The decision to invest is based on the fact that the company will be able to gain benefits from the renovation that includes increase in customers and their satisfaction levels.
Conclusion
While concluding the entire report it can be said that the hotel XYZ can become more famous and it can become center of attraction for the tourist after the renovation. The importance of the renovation according to the customers’ demands and requirements will increase the customer flow. Moreover, with the help of the project manager of the hotel the renovation will be done under the estimated time period and budget. It should also be noted that the action plan designed by the manager is a necessary step that carefully design the renovation structure. Therefore, it is suggested that while designing the renovation structure the project manager should complete maximum tasks within the limited time and budget to control the decrease in revenue of the hotel during the renovation period.
References
Chon, K., & Maier, T. A. (2009). Welcome to Hospitality: An Introduction. New York: Cengage Learning.
Hassanien, A., Dale, C., & Clarke, A. (2010). Hospitality Business Development. New York: Routledge.
Pizam, A. (2012). International Encyclopedia of Hospitality Management . New York: Routledge.
Ventovuori, T., Lehtonen, T., Salonen, A., & Nenonen, S. (2007). "A review and classification of academic research in facilities management". Facilities, 25 (5/6), 227 - 237.
