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Capital Projects & Value Creation

Upon completion, brand mandated Product Improvement Plans (PIP’s) increase revenue generation through improved guest loyalty and enhanced guest experience; as validated by the world’s preeminent hotel brands.

Value Creation Through Capital Investment, Renovation, And Refurbishment

Premium brands have a national reputation for value and quality. To maintain guest expectations and deliver strong RevPAR and NOI margins, brand mandated property improvements (“PIP’s”) are required.

PIPs may include:

  • Guestrooms: New furniture, new décor, new softgoods and updated bathrooms
  • Public Areas: Redesign of the lobby, breakfast dining area, and meeting space to create open communal spaces that can be flexible and can accommodate changing needs throughout the day.
  • Exterior: New roofline and facades, new paint schemes, addition of exterior lighting, and other minor site and structure updates

During 2019, AHIP expects to invest approximately $25 million in property improvement renovations which are designed to enhance the overall guest experience at many of our hotels.  These improvements may include updates to lobbies, guestrooms, meeting rooms, and food & beverage facilities (such as breakfast rooms and lobby bars).   

In some cases, the renovations may impact hotel operations including some guest displacement which may affect our quarterly results. We are working closely with our Hotel Manager to minimize the disruptions, and forecast less than $2 million of impact to EBITDA in 2019 from direct renovation displacement.

The following hotel properties are scheduled to undergo PIP projects estimated to be more than US$500,000 in 2019:

Scheduled Renovation Dates
Hotel Name and Guestrooms Q1 2019 Q2 2019 Q3 2019 Q4 2019
Fairfield Inn & Suites Jacksonville (89 guestrooms) ✓
Residence Inn Chattanooga (87 guestrooms) ✓ ✓
Homewood Suites Allentown (108 guestrooms) ✓
Homewood Suites Bethlehem (108 guestrooms) ✓
Homewood Suites Dover (108 guestrooms) ✓
Holiday Inn Express Fort Myers (111 guestrooms) ✓
Holiday Inn Express Sarasota (101 guestrooms) ✓
Embassy Suites Tempe (224 guestrooms) ✓ ✓
Embassy Suites Cleveland (271 guestrooms)  ✓ ✓ ✓ 
Towneplace Suites Chattanooga (87 guestrooms) ✓
Courtyard Ocala (169 guestrooms) ✓