Hotel Owners who Budget, Why Run a 1 Star Hotel?

If you are a hotel owner who budgets in terms of Expense Per Room instead of overall cost, you are likely to be running a 1-Star instead of a 3-Star or higher.

This business process often leads to a reduction in quality, low expectations of outcome from maintenance and housekeeping, and overall cheapness. Low quality contractors or outside services you hire, only based on price, can have poor results.

Yes, you want to pay the lowest price, but should it almost always lead to lowest quality? Hospitality is about quality.

You can hire cheap people to do cheap work, and they ultimately don’t save you any money because they:

1. often break things.
2. find short-cuts.
3. don’t know how to fix problems on the fly.
4. leave a mess for housekeeping to clean up.
5. have no trail of quality to follow.
6. can’t be recommended to other owners.
7. need to take your time directing and managing their work.
8. can lead to lower ratings on Yelp, Tripadvisor, and Google.

Cheap contractors may only charge you a low price like $11-$15 per room, but then your guests may be left with plenty to complain about. Discounts, broken PTAC units and down rooms begin to eat away at your bottom line.

Answer: If you are a hotel owner who budgets, don’t go cheap! Switch your process to a total cost-of-business management style.

Here are your options:

1. Normally you would hire “AAA Cheap Labor” company to clean PTACs and Carpet. They come in, do the job of a sweaty crew, move your PTACs all over, wash them out and stuff them back in the sleeve. The carpet is cleaned with cheap equipment and chemicals. The result is 7 PTACs don’t work anymore, the carpet smells better but the stains haven’t changed, 10 units now leak water into the rooms, door frames and thresholds are damaged, and you can’t find the crew to get them to come back and fix anything they broke. Total cost of repairs following this will be over $5,000 and you only paid them $2,200 to create the problem. You also end up with 10 down rooms for a loss of $5,500. Ultimately it cost you $13,700 to reduce your Star rating. So, the next year you hire a full-time employee for $30,000 and they never quite finish the job. Your Star ratings continue to fall while unforeseen expenses rise.
2. Or pick option number 2 – Hire a company that intends to do the job correctly the first time, is proactive about solving problems like sleeve repair, wiring, leaks, and room quality. Pay them a reasonable price compared to option 1 above, so they can bring real trained technicians who know what they are doing. If the PTACs and Carpet are done correctly, your guest happiness will rise, your Star rating will rise, and your major company brand will be secure. Even if you pay 3 times as much for a quality crew, it’s way cheaper than breakage, down rooms, and complaints. At the same time, you save so much money on quality, you can afford to do this more often!

Now is a good time to change your deep cleaning to quarterly instead of annually, or just when you want to sell a building.

Cheap hotels seem to be on the way out, especially with the new expectations of cleanliness. Choose Quality.

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