Since 2011, capital expenditures (CapEx) have steadily increased in the hospitality industry. Hotels are routinely devoting more resources to enhancing the guest experience and developing their presence in the market. This is different from simply increasing operating expenses, which tend to be shorter-term, routine expenses that can be deducted from taxes.
The increase in CapEx can be a sign of great things, but it’s still important to use it properly — hopefully in ways that will yield more returns for your business.
While everyone has their own way of doing things, recent patterns have shown that certain areas of spending and attention will help you get the most ROI on your CapEx.
1. Invest in Technology
Technology is often one of the best investments you can make to ensure guest satisfaction. Visitors rely on their connection to the outside world — from traveling for work to staying in touch with friends and family. That’s why getting a strong, high-speed Wi-Fi connection will keep people coming back time and time again, translating into a higher ROI.
Other technological touches like smart TVs and electronic key card access also make great investments for convenience and entertainment.
2. Pay Attention to Common Spaces
On average, guests spend much more time in shared spaces than they used to — and less in their rooms. Therefore, these areas are some of the best places to invest in upgrades. Understanding the feeling and aesthetic you want to embody and running with it can work wonders.
If you have a lounge you want to make more comfortable, consider cozier seating options. If luxury is what you’re going for, install new marble flooring or unique art. It’s all about understanding your guests and finding what they want in a space. That way, it feels unique, and your money goes to good use.
3. Design With the Future in Mind
Stretching your investment is one of the key factors in making it go far. That being said, designing with the future in mind is one of the best ways to save money and effort in the long run. While it would be great to only have to think about comfort and style, streamlining aesthetics, technology and quality for the long term can help you get the most out of your CapEx.
4. Consider Outdoor Space and Curb Appeal
Since guests spend more time in shared spaces, consider sprucing up your outdoor areas. Many hoteliers have already jumped on the trend of spending for curb appeal, and overall, it tends to work in their favor. The exterior is the first thing guests see, after all, so it’s important to make it count. Consider adding outdoor seating options or even a playground if you tend to draw a lot of families with young children.
Boost Your Hotel’s CapEx With These Tips
Even as CapEx increases, you can make the most of your budget by planning smarter investments. From the tech to the ambiance, your hotel can become a place guests will remember and want to return to.