Property Improvement Plan

A property improvement plan (PIP) is required to bring a hotel in compliance with brand standards. According to HVS, an effective PIP should help owners gain market share, increase guest satisfaction, drive revenue performance, and enhance profitability. Elements like lighting, faucets, and fixtures are foundational for brand standards, but now energy-efficient equipment upgrades are entering the equation. Andrea Pinabell, director of sustainability at Starwood Hotels and Resorts Worldwide, says the company is pushing hard to incorporate sustainability measures into the conversion process. “We’re not to a point where we’re saying to the owner you have to change these things now, but we’re saying here are some things we would recommend in order for you to be able to run an efficient building.” For instance, if a boiler system has a 30-year life expectancy but it’s only 20 years old, owners might consider changing it out early because there is no down time, new systems are 30 percent more energy efficient, and there is a good ROI attached. “We’re looking at mechanical systems, chillers, boilers, and things that are not very sexy,” she says. “It’s really important in looking at how much it’s going to cost to operate that piece of property.”