Thursday, July 22, 2010

Updating Hotels in this Economic Climate

As mentioned in the previous post, right now is the best time to invest in electronic renovation. As much as furniture, design, and upholstery are all great, they’re too expensive to renovate right now correct? Wrong.

According to recent hotel articles and posts, right now it is the BEST time to invest in things such as hotel furniture, case goods, and upholstery as well. Why? Because of the economic climate.

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Right now nobody is really making any money, and the first thing the economy hits when it plummets is hospitality. Things like hotels, restaurants, and services. People cut back on these luxuries to save money. Instead of vacationing, they spend those hours working for more money. Instead of going out to eat in restaurants and feeding money back into the economy, they go grocery shopping in attempts to save as much money as they can.

Then the economy starts hitting other highways of businesses. One of these businesses is eventually the makers of hotel furniture, hospitality furniture, and businesses of that nature. Because of this, they lower their prices and thus, making it “more affordable” for the hospitality industry to afford these new renovations.

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The factor that offsets this entire scheme is the fact that many businesses right now say they cannot afford to renovate. They say that they cannot afford to spend money on revamping their business right now. That makes sense right? Why would you spend money upgrading your hotel when its barely floating on the revenue stream you are getting from just being in business? My answer to that is how can you afford not to. With prices lower than they have been in a while, and giving your business an opportunity to catch up to the rest of the hospitality leaders, while giving your business a huge temporary competitive advantage, the investment might pay for itself.

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