motel makeover guide RENOVATING 3-4 STAR MOTELS Executive Summary Justin Beall, Linda Roberts and Leo Jago FOREWORD The Hotel, Motel and Accommodation Association (HMAA) network would like to recommend the Motel Makeover Guide to all owner operators of 3-4 Star Motels. The Guide has been compiled to assist businesses with property renovations in order to maintain the standard necessary to compete successfully in the highly competitive tourism and travel environment. The Australian accommodation industry has undergone significant changes since the emergence of the popular motel accommodation facility in the 1970s and 1980s. At that time these developments met the needs of the travelling public, both for business and leisure requirements. The demands of consumers, especially within the last decade, have developed and increased significantly, resulting in a far more discerning customer for accommodation operators to satisfy. The changes have largely been driven by the higher standard of living, and considerable increase in investment by consumers within their homes by the provision of luxury amenities and the inclusion of high-tech appliances. In essence, when away from home the average consumer will not settle for less than the quality of amenities enjoyed on the home front. For accommodation operators embarking on newly constructed projects, the task of incorporating current trends and technical facilities has been relatively straightforward. However the passage of time, combined with low levels of profitability and other financial challenges, have resulted in many older establishments facing significant demands to meet consumer expectations in order to remain viable and stay in business. The Motel Makeover Guide for renovating 3-4 Star Motels is presented as an all-inclusive resource for operators to examine their individual establishments and identify opportunities for developing cost effective renovation programs. The HMAA network congratulates Tourism Tasmania for initiating the project and for the extensive work undertaken by the Sustainable Tourism Cooperative Research Centre. Dennis Winchester CEO HMAA DISCLAIMER ACKNOWLEDGMENTS The views contained in this publication are those of the authors and do not The Sustainable Tourism Cooperative Research centre, established by the Australian necessarily represent the views of the Sustainable Tourism CRC. While the Commonwealth government, funded this research. The project was initiated by authors have made all reasonable efforts to gather the most current and Tourism Tasmania and supported by The Hotel, Motel and Accommodation appropriate information, the Sustainable Tourism CRC does not make any Association of Australia (HMAA) and AAA Tourism (AAAT). warranty as to the correctness, completeness or suitability of the information, and shall in no event be liable for any loss or damage that you may suffer as AAA Tourism provided information for the chapter on star ratings and Ted a result of your reliance on this information. Horner of E. Horner and Associates P/L, Hospitality Technology Consultants provided the chapter on Information Technology. COPYRIGHT © CRC FOR SUSTAINABLE TOURISM PTY LTD 2005 All rights reserved. Apart from fair dealing for the purposes of study, research, Acknowledgement is also due to Dr Zbigniew Bromberek and Gary Fleming of criticism or review as permitted under the Copyright Act, no part of this book the University of Tasmania for assistance in preparing the guide, to Paul may be reproduced by any process without written permission from the publisher. Whitelaw of Victoria University for his contribution to the data collection and Any enquiries should be directed to Brad Cox, Communications Manager analysis for chapter 2 ‘What do visitors want?’ and to Robert Mason of Victoria [[email protected]] or Trish O’Connor, Publishing Manager University for his assistance in the preparation of chapter 15 ‘Case studies’. [[email protected]]. Photos courtesy of Tourism Queensland. 2 INTRODUCTION This is a summary document of all the major issues and research findings contained within the Motel Makeover Guide, an 80 page, step by step manual available from the Sustainable Tourism CRC (www.crctourism.com.au). A large percentage of commercial accommodation for travellers particularly in regional areas is provided by motels. Many of these motels were built in the 1970s and 1980s yet they have had little or no refurbishment undertaken. Due to this, many are failing to meet continually increasing consumer expectations, which leads to poor referrals and low repeat visitation. As the level of consumer dissatisfaction for accommodation in the area increases, the challenges faced by the agencies responsible for promoting the region become much greater. This project and the subsequent Guide were initiated to identify the gap between what properties currently offer and what visitors expect. The intention is to find ways to refurbish and renovate properties to match these expectations. This Guide offers straightforward advice on the problems and solutions to renovation. The Guide also offers advice on how to better present your motel to your guests without having to spend an enormous sum. Therefore the Guide will be beneficial for you whether you are looking to renovate or simply want to modernise your motel to attract more customers. “Guests are now staying over for more than one night and steady clientele has been boosted” stated Andrew Mierendorff, Owner of Bali Hi Motel, after the refurbishments. If you own a 3-4 Star Motel then the Motel Makeover Guide will assist you. Review the following questions to see if you should consider motel refurbishing. Do you have a large number of repeat guests? yes no Have you upgraded your facilities in the last 5 years? yes no Have you invested at least 5% of your revenue in refurbishment? yes no Do guests often compliment you on the standard of your Motel? yes no Do you get strong referral business from other motels? yes no Are you able to increase your tariff each year? yes no Does your property compare well with newer properties in the region? yes no IF YOU ANSWERED NO TO TWO OR MORE OF THE ABOVE, THEN YOU ARE STRONGLY ENCOURAGED TO INVEST IN THE MOTEL MAKEOVER GUIDE. GO TO THE KITSHOP AT www.crctourism.com.au OR CONTACT STCRC ON +61 7 5552 9055. 3 THE BIG ISSUES What are the real concerns and where should you spend your limited refurbishment funds? There is no short answer as to the best place to start a refurbishment program. However the study reveals that the following places are very important to consumers. So let’s begin by considering the following questions, which are thoroughly covered in the Motel Makeover Guide. BATHROOM • Should I install a bathtub and a shower (separate or combined) or just a shower? • Should I install more mirrors? The Guide suggests that increasing the size of the wall mirrors can give the illusion that there is more of the room around a corner and also serves to reflect light, colour and pattern. KITCHENETTE • Should I install a kitchenette? • What equipment should I include in the kitchenette? • Is a microwave oven sufficient or should I install a stovetop and regular oven? • How do I deal with cooking vapours and odours? How can my concern over strong cooking smells being absorbed by the furnishings and grease accumulation on surfaces be addressed? The Guide reveals the need to ensure excellent ventilation. A kitchenette must have an exhaust fan. It’s not just the smells that are left behind and you can’t afford to set off fire detectors (that costs time or money), it’s a building code requirement. “The refurbishments have paid off!” Barbara Lamont, Co-owner, Grove Motel Cairns FURNITURE AND FITTINGS • Will a coat of paint be enough or will I need to replace the fitted furniture? • If I remove the fitted furniture what freestanding furniture will be needed? (For example, would hanging space suffice rather than a wardrobe) • Should I install fitted carpets or an alternative, e.g. polished floors? The Guide reveals the need to match the market. The requirements for seating, desks, and tables vary by market segment. Ensure you understand what your guests need. 4 SPACE • How do I create the appearance of space when my units are quite small? Points are awarded in the AAA Tourism Motel Guidelines for ‘free floor space’. The Guide reveals simple approaches like encouraging diagonal views that can improve the sense of spaciousness in a room, and will simply allow views outside through well-placed windows. SEATING COSTING STUDIES, • How do I create the space needed to provide a sofa as well as making a second HOW TO USE THEM bed available? Throughout the Motel Makeover Guide there are • Would a sofa bed be satisfactory? costing studies showing renovations or changes AAA Tourism Motel Guidelines suggest there is trend away from queen size to typical buildings. Cost configuration and a move to a king sized bed with sofa and occasional seating. estimates have been made The Guide reveals buying good quality furniture will keep ongoing costs down if based on scenarios to provide the item is commercial and of proven quality. indicative information. The values have been calculated LIGHTING by quantity surveyors and • How much lighting should I provide? represent an average cost in regional Australia in late • How can I control the use of electricity if I provide extra lighting? 2004. Most scenarios show The guide reveals a compact fluorescent light draws about 60% less power, and lasts a number of different 5 times longer, than an incandescent bulb. changes and some may not relate to your property, UNIVERSAL ACCESS simply exclude the Access for the disabled is an important aspect of any refurbishment. Not only does components that don’t apply the law require it but it may also provide a marketing aspect for your property. in the cost table. A refurbishment that includes a substantial part of your The estimates are based on property may result in a building code requirement to improve renovating one or two rooms the accessibility of some rooms and the reception areas and at a time and lower prices parking.