Refurbished guestrooms: Make guests smile & room rates soar

Furniture wears out, walls become scuffed, carpets become tired, and designs dated. But guests never tire of finding fault.

Sooner or later all accommodation providers are faced with the same question: Is it time for a guestroom refresh or can it wait a bit longer?

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Michael Pavich, who has transformed the Burleigh Palms apartments with his wife Linda on the Gold Coast, says it’s essential to refurbish rooms often, to keep guests happy and room rates rising.

New, more modern competition, or customer complaints about outdated rooms can force a revamp, but when is the right time for a guestroom refresh?

Mr Pavich says every five years is a good rule of thumb, but he saw the need to update his property as soon as he took over in 2019.

In the management rights sector, Mr Pavich says once owners see that they’re getting bookings and their occupancy is going up, then managers can start to increase rates.

When owners see a real boost to their income it’s time to talk to them about upgrading all the appliances, putting furniture packs in, improving the beds, bathrooms and kitchens.

And that will ensure the rates keep rising.

“When I was in the hotel industry we would do a refurbishment every five years, with paint, furniture packs and new flooring,” Mr Pavich said.

“It gives the rooms a whole new look every five years, and you can’t really lift the rates for a property without that.

“If properties don’t update their rooms when they try to lift their rates they get a big push-back from guests online.”

Online reviews and customer feedback can be big drivers for change to a property as online reputation is vital to booking strategies.

Mr Pavich says any mention from guests about outdated facilities should be taken seriously.

Seasonal downtimes are the best option for refreshments and refurbishments so that occupancy isn’t dramatically affected, but Mr Pavich says the key to minimising downtime is having a good relationship with industry designers and contractors to ensure they do the work in the time they say they’ll do it, and at the price they quote.

“If the work drags on then rooms can be out of commission for some time,” he said.

“But when it’s finished and the rooms have a whole new look, managers can advertise the improved look on their website and obviously charge more, keeping the owners happy after the investment they’ve made.

“Guests are happy too, because the accommodation is meeting their higher expectations.”

Room updates should be comfortable, practical, and inspiring, and even on a tight budget a change of furniture and decoration can significantly enhance the guest experience.

Mr Pavich markets Burleigh Palms as “modest accommodation in a great location” and has tried to create the feeling of “Bali in Burleigh” with a tropical garden and pool.

He has convinced many of the owners to refurbish their rooms, ensuring a modern coastal feel with new furniture packs and décor.

Renowned Gold Coast hotel designer and Founder of Hotel Interiors Dennis Clark says it’s vital that properties move with the times.

“On the Gold Coast everything was cane furniture once, then it moved into white-washed cane furniture,” Mr Clark said.

“Then there were the big hibiscus prints on the lounge, on the armchairs, on the bar stools and then the same print coordinating on the curtains and the tiebacks and the pelmets. Then the more modern minimalistic contemporary look crept in.

“That probably came to Queensland about 15 years ago. The secret is that even if you do modern furniture in a coastal hotel it’s about having the influence of colours, so you introduce coastal themes in the throw cushions in the rugs or bed-runners.

“Some of the furniture might be the same as you would see in a CBD hotel in Sydney, but because of the different colours and the accessories, it becomes a completely different look.

“Nowadays, I think people who stay in a hotel room want what they’ve got at home if not better. Some of the designs we’re doing now are retro designs that were popular 40 or 50 years ago. It’s a bit like clothing – it comes in and out of fashion. If a hotel or resort uses what’s fashionable now it will be dated in a few years.

“We’ve learned so much about space management and we don’t overcrowd rooms.”

COVID, and depleted guest numbers, gave many properties the opportunity to revamp.

Dr Jerry Schwartz, the director of the Schwartz Family Company, purchased the Hilton Surfers Paradise and Paradise Resort Gold Coast, saying that both “excelled in terms of location and potential, but both required extensive work to make the most of that potential.”

“The upgrades to the Hilton and Paradise Resort took place largely during the COVID-induced close-down,” he told AccomNews, “so by the time borders were re-opening and when most of the southern states wanted to head north to Queensland, we were ready with the right product in the right place and suitable for the right markets.

“We have upgraded our product so while a couple or family may have looked to go overseas for a holiday because of the perception of higher quality of accommodation and facilities, our hotels on the Gold Coast can deliver that quality but with the convenience and value of a domestic location, complemented by some of the best beaches in the world.

“It is a complete package” he said.

Accommodation fit-out expert and Hotel Interiors Business Development Manager, Kate Ifould asks what do the worst-reviewed accommodations tend to have in common? “Sub-standard, outdated guest rooms,” she warns.

“The right refurb can yield a massive return on investment -so don’t leave it too long,” she said.

 “Pressure is on accommodation businesses to remain current and competitive; they cannot wait for guestroom standards to negatively affect room rates.

 “When it comes to affording a quality refurbishment there is a ‘sweet spot’ in time before your room rates take a hit. If you leave it too long there is a danger that your depleted budget may not cover refurbishment needs”

 And with so many new guest rooms coming online in 2022 and many more expected in 2023, she says competition is reaching record highs.

 “The market is full of new brands and travellers looking for style, authenticity, and practicality. Lifestyles have changed, and guests use guestrooms and communal spaces differently. An increase in ‘Bleisure’ travel demands a rethink of FFE layouts.

She advised: “Create and select FFE that is not only comfortable and aesthetically pleasing and on-trend but also fit for purpose and will not date for at least 5 years.” 

“In this market, tired stock with traditional layouts will find it harder to compete.”

On timing and coordinating a refurb, she said: “Plan plan, and more planning, also prepare well ahead of time.

“Planning a project during quieter periods is optimal, but a ‘rolling refurb’ can happen anytime. Remember to allow plenty of time for selection, prototyping, tweaking, and take into account lead times”

For those on a limited budget, she suggests working with an FFE specialist to decide on a final vision but if needed plan the refurb in stages. This may affect pricing given economies of scale, so that too needs to be considered.

On current interior design trends, she said: “A ‘wow aesthetic’ is definitely in. We’ve seen an increase in demand for fixed joinery, creative panelling, and curves.”

Finally, on colour trends, she reveals there is a distinct choice between neutrals – calm, natural white, and beige or a punchy, luxurious use of colour.