Today, I will compare and dismantle the two renovated hotels, watch others open hotels, and grow their own knowledge~~
Lao Mao and Hu Jun are hotel investors, they both chose the old building to transform into a hotel, the same grade, similar quality, but Hu Jun's single-room renovation investment is more than the old cat saving tens of thousands of yuan!
(See table below for details)
The two people who once stood at the same starting line, because of the disparity in preparation investment, one started with a failure, and the other started with a steady win!
Where are the gaps?
Why is there such a big gap?
1
Two extremes
The two hotels are highly similar.
Before remodeling:
They are all old buildings from the early 80s, brick and concrete structures.
All in the center of the old city, with good location and complete facilities.
The first floor is all merchants along the street, and they all have their own unique courtyards.
They are all "three nos", no fire protection, no elevator, no floor heating...... That is, "major surgery" is required.
After:
The grade is similar, the quality is comparable, and the price is close.
The renovation projects are also very similar, they are all demolished and restarted, from 0 to do fire protection, water and electricity, change windows, renovate the façade, and do roof waterproofing......
Distinguish:
Lao Mao Dian is a compound + two main buildings, both of which have been converted into hotels;
Hujun is a compound + a main building + a circle of bungalows, which have been converted into homestays.
These similar cards, placed in the hands of different traders, have played completely different results.
Where are the gaps?
2
Retrofit checklist
Let's start by pulling out a list of renovations for the two buildings.
Note: The products and supporting facilities of the two hotels are somewhat different, such as the old cat's hotel has breakfast and meeting rooms, while the fox does not; the old cat's hotel is mainly rooms, while the fox is a guest room + homestay, and the two hotels are developed in stages, plus the calculation method is different, so the data is for reference only, we mainly look at the logic behind it.
(Only renovation projects are listed, excluding soft furnishings)
There is a truth behind the data, and against this list, we can find that there is a lot of difference between the two stores.
Let's analyze each item and try to find out the secret weapon of Fox Jun to save money, and see how he controls the budget so extremely.
3
Difference Location
1
The difference in the property
As can be seen from the list, the demolition, reinforcement, and firefighting investment of the two families are very different.
The cost of reinforcement and fire protection depends on the initial state of the property.
Although both buildings are red brick buildings from the early 80s, they look the same old.
But the "lining" is very different:
A building is not standardized, for decades frequent change of tenants, each of which is violently demolished and renovated, the safety of the property is getting worse, the demolition, reinforcement, and the transformation of the mechanical and electrical system are very difficult and wide-ranging, and the cost is rising upward.
The other building is only three floors high, and has been used for the unit office, the safety foundation is better, only for the weak point of local reinforcement, the hardware restrictions of fire protection are also less, the difficulty of transformation and the cost is naturally much smaller.
Summary: The first successful trick of Hujun is to do a good job in property diagnosis and assessment, avoid property pits, and choose the right property.
2
Poor control
There are three major disasters in the preparation for the construction of the old cat hotel: the budget is exceeded, the construction period is overtime, and the quality is repaired, so to speak, the project management is seriously out of control.
Why is this happening? Because nobody cares.
The old cat is a newcomer who crossed the line, and after renting this property, he temporarily saved a grass platform team:
- The shareholders are united because of the project and gather together with investment funds, and there is no deep friendship before.
- The person in charge is all part-time or consultant (because there is only this one store, and the temple can't afford to support a professional team)
As a result, when the project is implemented, no one is fully focused on the project, and no one implements something......
Hujun is a veteran of the hotel industry for ten years, and the company's three resident shareholders are designers, engineers, and public relations operations.
Because each step of the decision is related to their own investment interests, there is no superfluous action when making decisions, and they all use the whole body to solve the problem, and they hate to weld on the construction site, after ten years of running-in, trust and respect each other.
Summary: The second successful move of Hujun, professional shareholders and excellent corporate governance structure, successfully avoided the shareholder pit.
3
Poor design
The original standard floors of both buildings have hard injuries:
Small room size and small bathroom.
The problem of the Hujun store is particularly prominent, because it is changed from an office format to a hotel, and the applicability is poor.
However, he cleverly used design to promote his strengths and avoid weaknesses, and boldly adopted a horizontal layout in line with the original layout of the property, so as to avoid tearing down the walls and smashing the beams and making a big move.
However, Lao Mao did not carry out design according to local conditions, on the one hand, because he was a franchise hotel, and the brand did not allow too many non-standard designs.
On the other hand, the designer of the service disregarded the facts, directly set the template, and made a lot of designs that were cut to fit the shoes, and the extra money was not effective.
Summary: The third successful trick of Hujun is tailor-made and personalized design.
4
Supplier differences
In comparison, the cost of each detail of the fox is less than that of the old cat, but the quality is not lost at all.
This is thanks to the suppliers that Hujun has reserved for many years, shopping around and selecting the most cost-effective.
And the old cat is working in a hotel for the first time, and this aspect is very lacking.
Take the window renovation as an example, the project that should have been implemented long ago has been delayed again and again, until the weather forecast says that the cold snap will come next week, and the freeze will affect the indoor construction.
Summary: The fourth successful trick of Hujun is a reliable and cost-effective supplier library.
5
The difference in foresight
Both stores are leased for up to 15 years.
Therefore, Hujun attaches great importance to two things in this transformation:
- The first is durability, such as in the mechanical and electrical system and waterproof engineering, choose good materials and use good materials to ensure that it can be used for more than ten years.
- The second is anti-aging, such as the lobby shape is forged with a whole piece of stainless steel, which is expensive in the short term, but in the future, when it is renovated, only some small modifications need to be made on it, and the whole store will look new.
The old cat's hotel obviously can't do this, the franchise must implement the brand standard, and the brand's standard color is high saturation blue and pink, this bright color is easy to be outdated, not to mention that the brand in order to maintain the brand image, will continue to launch 4.0, 5.0, 6.0 new versions......
Forcing investors to continue to renovate, the gap between the renovation investment of the two stores will also widen in the future.
Summary: The fifth successful trick of Fox Jun is to leave enough space for future renovation and have a long-term vision.
6
The difference in accounting thinking
Preparing for a master is not to blindly save money, but to spend limited funds on the cutting edge.
For example, the corridor wall of Fox Jun is made of the most common board.
However, some parts will be "brightened" with textured hard packs, which avoids the sense of cheapness and reasonably compresses the input.
Another example is the most cost-effective wall covering on the walls of guest rooms.
However, the wall of the bathing area is made of large pieces of marble, which greatly enhances the sense of quality.
Summary: The sixth successful trick of Fox Jun is to have a sense of accounting when designing and preparing for construction, spend limited money on the blade, and allocate thousands of dollars.
7
Poor operational thinking
The Fox Hotel was designed with the operation scenario in mind.
For example, the public area uses a large number of real paint + painting processes:
- Real lacquer is made with a delicate and rich appearance;
- Painting ensures sturdiness and durability.
In the future, the cleaning lady can directly wipe the wall with a rag, and the maintenance cost is very low.
The old cat clearly lacks operational awareness.
For example, his hotel door is a dark brown wood grain door.
It looks good, but it looks bad:
One press a handprint, the eldest sister has to spend a lot of effort to wipe it, and the maintenance has to buy a special essential oil, which increases the operating cost.
For another example, in order to "look good", the old cat hotel uses a "moisture-proof floor" under the basin area.
What effect can the moisture-proof floor be prevented, how long can it be prevented, half a year, one year, two years...... Many designers are not down-to-earth, but it is the owners who bear the cost.
Fox Jun will not choose this gimmick > practical design, and adopt a more secure and practical design to eliminate the hidden danger of soaking mold in the future.
Summary: The sixth successful move of HUJUN, the operation thinking runs through the product design and construction.
Write at the end
Renovation and decoration is the beginning of hotel investment, and whether this head is good or not directly determines the success of the investment.
On the surface, the control of the renovation budget is an engineering problem.
But in fact, it is a huge and systematic project determined by the company's head capability model, equity structure, hotel positioning, product design, construction unit, project control and other aspects.
Hotel profits are getting thinner and thinner, forcing investors to do a good job of controlling the whole chain - from the selection of partners to the selection of projects, from the selection of properties, the selection of locations to the selection of positioning, from the selection of design to the selection of suppliers, every level must do a good job of avoiding pitfalls, without wasting every penny of budget.
On the other hand, when your budget is repeatedly exceeded, you have already overdrawn your hotel's profits.
The opening game is a dead move.