Industry NewsHFTP Research Sheds Light on Hotels’ Pre-Opening Budgets and IT Timelines

HFTP Research Sheds Light on Hotels’ Pre-Opening Budgets and IT Timelines

AUSTIN, TEXAS—A newly released HFTP study—Pre-Opening Expenditures in Hospitality—investigates pre-opening budget timelines and procedures in the hospitality industry. Commissioned by Hospitality Financial and Technology Professionals (HFTP) and authored by Agnes DeFranco, Ed.D., CHAE and Arlene Ramirez, MBA, CHAE, CHE, CHIA of the Conrad N. Hilton College, University of Houston, and Tanya Venegas, MBA, MHM, CHIA, director of customer success at HotStats, the study aims to clarify understanding of the optimal pre-opening processes and components across hotels of a variety of types, sizes, and geographic locations.

“The researchers identified a significant blind spot in industry knowledge and took bold steps to fill that gap,” said HFTP CEO Frank Wolfe, CAE. “Their work is a crucial contribution to HFTP’s initiative to provide current, high-quality educational resources to our industry.”

The researchers surveyed executives with experience in hospitality and/or finance to understand their experiences and unique approaches to the process. Respondents oversaw an average of 22 hotels each, which ranged across five continents. The majority of the properties represented were classified as luxury/upscale. Guidance based on contributors’ responses includes common practices for pre-opening budgeting: development, timeline, and oversight. Within the budget planning is a chart of top expenses by property class and labor costs, with details on hiring timelines and employee relocation benefits. In addition, the report offers pre-opening timelines for the selection, installation, and training for hardware and software systems.

When asked their thoughts on the outcome of the study, the three researchers commented as follows: “An interesting aspect of this study was the variety in the interpretation of what should be contained in the pre-opening budget. The study reflects the need for more clarification and guidelines on the timing and types of costs that should be included in order to be compliant with GAAP and provide management with information that is useful in making decisions during this phase of project development.”

RELATED ARTICLES

Hyatt Centric Chicago O’Hare Opens After Revitalization Project

ROSEMONT, Illinois—Hyatt Centric Chicago O’Hare, located less than two miles from Chicago’s O’Hare International Airport, is now open following the completion of a revitalization...

How to Future-Proof a Property Without Losing the Human Touch

In the hotel industry, “future-proofing” is often narrowly defined through a technology-first lens from automated check-in systems, AI-powered service platforms, and digital-only guest journeys....

Stonebridge Appoints Adam Snow as Executive Vice President, Chief Strategy Officer

DENVER, Colorado—Stonebridge announced the appointment of Adam Snow as executive vice president and chief strategy officer. In this new role, Snow will lead strategic...

First Hospitality Partners With Stayntouch

BETHESDA, Maryland—Stayntouch announced a partnership with First Hospitality. First Hospitality selected Stayntouch PMS to support its independent hotels, enhancing operational agility, driving mobile-enabled service,...

Peachtree Group Celebrates Topping Out of Residence Inn by Marriott in San Antonio

ATLANTA and SAN ANTONIO—Peachtree Group marked a significant milestone in the construction of the 10-story, 171-room Residence Inn by Marriott in downtown San Antonio...

Hotel del Coronado Announces Completion of $550 Million Restoration

SAN DIEGO, California—Hotel del Coronado announced the completion of the revitalization of its Victorian building, the final milestone in Blackstone Real Estate's more than $550...