Whether you are selling a home, a car or a hotel, it’s a fairly common practice to make certain upgrades to whatever you are selling to make it more attractive to buyers. If you are trying to sell a home, you may invest in some landscaping to increase curb appeal or have the interior painted in neutral tones to appeal to a broader range of buyers.
Conversely, however, there are certain investments that are not wise to make before selling a home or other property, as they may not actually bring in a significant ROI on either the actual cost of the upgrades or the time and inconvenience it caused you to do them in the first place. For instance, investing $50,000 in a full kitchen remodel will not increase the purchase price by the same amount or more if the buyers don’t like the style you chose and decide they will need to remodel the kitchen to match their own style prior to moving in. In some cases, major renovations can actually decrease a purchase price rather than increasing it.
These same concepts hold true when you are selling a hotel. There are certain upgrades you can make that will make your property more universally attractive to buyers, while other upgrades will simply be costly and inconvenient without really providing a significant ROI in the price your property brings in. One upgrade you can make that will be almost sure to increase the value of your property is technology.
There are a number of different technology upgrades you can make, from new, more secure key card entry systems, to surveillance and security systems, to upgrades to phone and communication systems. There are several advantages to installing or upgrading your technology prior to selling, but here are the top 4.
1) It’s minimally invasive
Part of the problem with any kind of upgrades or remodeling that is done in a hotel is that a hotel is still a working business. Even more importantly, it’s a business where the customers are often trying to sleep – and not always just at night, either. Most hotels have a checkout time between 10am and noon and a check-in time between 2-3pm to give hotel staff a chance to clean up rooms and prepare for new guests. But there are always guests who are still present during that window of time that might be disturbed by the noise that major renovations regularly cause. Upgrades in technology, however, often take place in server rooms and places where there are no guests present, or can be conducted on a room by room basis when rooms are empty or being cleaned. Installers can generally make it in and out in about the time it would take a cleaning crew to prep for new guests.
2) It’s better for both guests and buyers
Generally, when you are prepping a hotel for sale, you want to not only make the property itself attractive to buyers, but you also want to be able to show them attractive numbers as well. Investing in certain types of technology will also attract certain clientele that will keep your rooms filled, which will boost your bottom line and make your numbers just as attractive to buyers as the property itself is. Advertising new heightened security measures or even faster Wi-Fi are both attractive features that will lure patrons to your hotel in areas where there are several options available.
3) When you do upgrades, your buyers don’t have to
No matter how minimally invasive technology upgrades are, they still require a great deal of energy, effort and planning to allow them to happen during the course of running a full-service business like a hotel. When you can show prospective buyers that you have recently made certain upgrades, that takes the weight off their shoulders of having to do all the planning and coordinating necessary to make those upgrades themselves.
4) No matter how they want to remodel or style the hotel, technology upgrades still have value to new owners
Almost invariably, when a new buyer buys a hotel, the thing they want to focus on fixing, changing or upgrading is the style of the hotel. They may decide a new, sleek, modern hotel will do best in that area or they may decide a more classic, elegant hotel will attract the kind of clientele they are looking to cater to. But whatever decisions they make about changing the look of the hotel, they won’t have to redo any technological upgrades that you did prior to selling, so that value still holds firm for them.