Though last year may have seen the walls of financial institutions crumble, the hospitality industry was knocking their own walls down with spackle and paint in hand. While occupancy may have been down and the pipeline slowed, a renovation revolution took place from behind wrapped scaffolding.

Perhaps the financial crisis is in many ways to thank for this renovation revolution. Owners and operators worldwide struggled to find ways to remain on top of their markets and reinvesting in something they already owned seemed to be a safe bet.  With travel down and rates already reduced, it seemed this was the year to renovate.

As explained by Howard J. Wolff, Senior Vice President of WATG, “WATG has coined the term “RevPAD” to refer to the impact that creativity can have on a hotel’s top- and bottom line: Revenue Per Amazing Design.” 

He outlines a number of reasons to renovate in this economic environment including reduced costs for renovation, the absence of the need to remove rooms from circulation if occupancy is already reduced, and the ability of the hotel to raise rates for a newly renovated property. He summarises by explaining, quite frankly, that, “Hard times are good times to prepare for better times.” Many operators have indeed heeded to this advice.

The renovation of Shanghai’s Peace Hotel, now the Fairmont Peace Hotel, aimed to preserve many of the iconic historic elements of this 1920s establishment while infusing technology, modernity and contemporary flare. This timeless reinterpretation of the Peace Hotel’s heyday will allow guests to walk through the past with all the comforts expected from a contemporary, luxury hotel.

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