Product maintenance and development

Abstract

Introduction This chapter addresses different aspects of maintaining the developed and operational property product in a manner that preserves or enhances value and its productive life cycle. The modern hospitality property is subject to ongoing change as a response to the ever-shorter life cycles of fashion, technology and product service content, as required for brand compliance in an ever-increasing competitive environment to acquire customers’ discretionary spending. Similarly, the industry having adapted to the split between ownership and operations, is seeing a change in the nature of its owners and investors. Continuing change creates a need for flexibility in the building form that encases the hospitality product, highlighting the tension between the costs of change and the return on investment (ROI) in existing properties. This chapter seeks to highlight the issues that designers, investors, asset managers and operators alike should take into consideration at the outset of a hospitality project, given the high capital costs associated with such developments and the need to maximize returns over the property’s life cycle. Aspects explored include: Property maintenance – to preserve value Property adaptability – to change in response to customer demand Maintain or improve market position – evaluate defensive spend and re-positioning Increase capacity – expand, remodel or change experience Improve yield per m² – alter use of space or product profile Product life cycle – look at economic cycle of fashion/lifestyle/brand products Enhance value by use of skill sets in diversification Technology – consumer demand and operational need versus cost and returns Mixed development units – opportunities to improve yields Conclusion