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Best PIP Practices to Get the Most Out of Your Investment

hotel loans - Stonehill
With the right hotel loans and property improvement strategy, you can maximize the benefits of your PIP renovation.

Property improvement plans, or PIP’s, can be expensive. Therefore, you should try to get the most out of your renovations and hotel loans. PIP’s address many different things. For example, mechanical systems, guest rooms, security systems, and landscaping. These renovations can help your hotel fit your brand and also increase profit and customer experience.

In recent years, PIP’s require more costly renovations, as many brands are trying to give their sub-brands unique identities. Because PIP expenses are increasing, you want to get the most bang for your buck. Make sure your improvements increase return on investment. To do so, choose elements that positively impact profitability and choose the correct hotel loans for your situation.

Choose Design Elements for Longevity

When creating a plan for your renovations, you want to select items and improvements that are durable and long-lasting. This can include furniture, lighting, plumbing, or really anything in your PIP. If you do this, you can increase your profits by keeping your hotel in great condition for as long as possible. Though you will likely require more hotel financing for these high-quality features, it will decrease the amount of money you have to spend later on to replace broken or worn products.

Surpass PIP Minimum Requirements

Another way to get the most out of your PIP is to go above and beyond the minimum requirements. This may seem like the opposite of what you should do for better returns. However, at the end of the day, property improvement plans are designed to help your bottom line. Therefore, if there are other things you can do to help you compete in the market or draw in more customers, this is the perfect time to make these enhancements. For example, maybe a new coat of paint isn’t required for your plan, but you may consider doing this while you are already renovating.

Plan Costs and Research Hotel Loans Ahead of Time

You don’t want to be surprised by the bill at the end of your  project. Therefore, be sure to do plenty of research and find the best contractor for your improvements. Additionally, make sure you request detailed estimates for your renovations so you know exactly how much capital you need to enhance your hotel.

Finally, be sure to look at all of your financing options and choose the hotel loans that make the most sense for you. Direct hotel lenders can help you with this process, as they have the industry knowledge to help you determine the best way to fund your improvements.

At Stonehill, we specialize in direct hotel lending. Our expert team can help you get the funding you need to provide the best service to your guests. We offer a range of options for hotel loans, from permanent loans to mezzanine financing. We can help you find the best solution for your financing needs. Call us today at (713) 666-2544 to schedule a consultation with our professionals. We are here to serve you.