Analysing hotel repositioning through property renovation in the hospitality industry
This study addresses the renovation and repositioning activities of the hotel industry. Specifically, the primary focus of this study is to explore to what extent hoteliers deal with renovation as a repositioning tool, to explore the perception and practice of hoteliers, architects and interior designers about repositioning and renovation and to identify and analyse some aspects of the renovation process in hotels. The study is exploratory and descriptive based on a quantitative and qualitative approach. This methodology is used to elicit and represent existing practices as well as hoteliers' perceptions regarding concepts of renovation and repositioning and the relationship between them. The research had a two-phase design which progressed from a survey (phase one) to exploratory interviews and multiple case study (phase two). In other words the research moved from the general to the specific. The primary research took place in Egypt. For the first phase, three different questionnaires were designed. The first questionnaire was for the hotel General Managers, the second one was for the hotel Marketing Managers, and the third was for the Architects, Building Contractors, and Interior Designers which make up the external parties involved in the renovation process. The findings of the survey identified three avenues that have to be considered for the second phase. First, six successful renovation projects in large hotels were selected as multiple case studies. These case studies illustrate that there are different reasons that make renovation essential for hotels. Secondly, nine semi-structured interviews were conducted with the owners of 3* hotels since they were seen to be the main barrier to renovation in most three star hotels according to the quantitative survey's findings. The third avenue involved conducting ten semi-structured interviews with hotel inspectors of the Egyptian Hotel Sector as their influence was a main reason to renovate in most three and four star hotels. The study finds that renovation is used in the hotels operating in Egypt as a reactive; rather than a proactive; marketing tool. The research findings suggest that international hotels are utilising renovation as a repositioning tool more than national and local hotels. In addition, the findings reveal that there is a wide gap between the public and private hotel sectors in Egypt.