How Hotel Extensions Can Help Increase Your Revenue

The Deloitte Report is often greeted with trepidation by hotel owners, and the 2024 survey is no different. In a forecast that can only be described as ‘mixed’, optimism is cautious at best. Despite this, Deloitte finds that hotels keep their position as the top choice for investors in 2025. The question is, what to do with the investment…? Read on to find out.

Extra Space

Whether measuring your profits in Revenue Per Available Room (RevPAR) or Gross Operating Profit per Available Room (GOPPAR), both figures are predicted to grow. As such, the more rooms, the better. The Hotel Academy notes that larger hotels make a “subconscious promise” to their guests that the hotel will be enchanting, and concludes that “size really does matter.” Extra rooms can be complemented with larger and more luxurious lobbies, unlocking that all-important first impression wow factor.

Customers’ Expectations

Comfort begins with careful design, and this has never been more important. It is well known that customers are increasingly sensitive to details such as layout, flow and room configuration. As such, those elements are crucial to the overall atmospheric effect of a hotel. Extending your hotel could be an excellent way to offer something new and different to your customers, which could help you meet those needs and expectations. This doesn’t have to involve dramatic reconfigurations. An experienced architectural designer can guide you towards small, practical details that may make a big difference to revenue.

Services

Increasing the number of services that you offer has always been a revenue enhancer, and extending your hotel could be a great way to extend those options. Many hotels opt for pools, spas, and gymnasiums. These can be expensive both to install and to operate, but generally offer good ROI. However, other ideas to consider are yoga and meditation spaces, charming reading rooms, or a sunroom. These can infuse a hotel with a sense of comfort and grandeur without the need for high-end equipment and maintenance, thus representing services that may provide an instant and risk-free revenue boost in uncertain markets.

Business Goals

Both historically and in the contemporary environment, expansion is the way forward for hotels. The more revenue you generate, the more you can invest, and the better your customer experience will be. With seminal reports such as Deloitte reporting cautious optimism, it is definitely a time to start making astute decisions regarding short-term and long-term business goals. Sensitive extensions, especially when they are planned as multiple phases of an overarching business vision, can be a vital way to expand and achieve your business goals.

What Next?

If you are looking for ways to increase the revenue of your hotel, extending is often a very productive and rewarding strategy. As the approach can benefit both customers and employees, the positive results can be amplified. To learn more, book a discovery call today.

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