The U.S. hospitality industry has seen a considerable resurgence in years following the recession. We continue to see increasing capital expenditures, and RevPAR trends are on track for the seventh consecutive year of growth, according to the JLL 2016 U.S. Hotels Perspective.
Many investors consider liquidation, acquisition or new construction options versus renovation projects, with the concern that many of these projects can be complex with hidden complications, and an improving economy mixed with younger demographics may better support an all-new product.
This often begs the question, “Is a renovation really worth the investment?” The answer is a resounding, “Yes!”
The proof is in the pudding, as they say, and the recent sale of The Graham Hotel in Georgetown is a strong indicator. BBGM provided turnkey Architectural and Interior Design services for the recent renovation project at the property, which increased the room count to 57 keys, as well as adding a new restaurant and rooftop bar for the boutique hotel. According to Mast Capital and the Washington Business Journal, the hotel’s profitability quadrupled following the renovation. This statement is confirmed through the sale price, which commanded an impressive $649,000 per room.
