Is Your Hotel Falling Behind? 5 Upgrade Signals You Shouldn’t Ignore
The United States is home to some of the most iconic hotels in the world, from big names like the Four Seasons to less popular names like The Priory Hotel.
According to the American Hotel & Lodging Association [AHLA], there are roughly 64,000 hotels like these all over the country.
Having this many hotels is great news for guests, because it means they’ve got lots of options to choose from when shopping for where to stay. For hotel owners, however, it means stiffer competition. If your hotel looks outdated or uninviting, people will simply book elsewhere.
Most hotel remodeling companies will agree that tired-looking lobbies, worn-out bathrooms, and poor layouts are more than just inconveniences. They directly impact booking and guest satisfaction. The challenge is spotting the signs of decline early and fixing them before guests start noticing.
In this article, we’ll discuss some of the signs that’ll tell you your hotel is falling behind, so that you can invest in much-needed upgrades before you lose all your customers.
1. Negative Guest Reviews
One of the first warning signs you’ll get that your hotel is falling behind is the number of negative reviews you’ll suddenly start receiving.
When you open your inbox, go on social media, or visit your TripAdvisor profile and see messages like the ones below, then you know you have a problem:
“We’re disappointed. The pictures we saw online must be really old or touched-up, because the hotel we stayed at looked tired and neglected. Definitely not worth the price.”
“Our room was clean, yes, but the entire hotel looks like it hasn’t been renovated in years. The furniture looked like it was out of a 90s TV show, and the room, so tinyyyy!. Not what I expect from a hotel in 2025.”
Here’s the thing about negative reviews: ignoring them will not make them go away; instead, they’ll damage your reputation and chase away what little patronage you have. In fact, studies show that just one negative review can cost a hotel as much as 10% of its potential new guests.
2. Frequent Guest Complaints
Some guests won’t even wait until they’re out of your premises before airing their disappointment. Broken air conditioning, toilets that won’t flush, leaky faucets, malfunctioning elevators, mold, unpleasant odor, even small closet spaces, all these can ruin their overall experience, and they can’t wait to give whoever is in charge a piece of their mind.
When complaints like these become common and frequent, it’s a sign you need to consider partial or full renovation of your property.
3. Visible Wear and Tear
Cracks on the walls, scratched furniture, chipped paint, leaky ceilings, and a general unkempt look — these are visible signs of wear and tear that show your hotel needs physical work.
Of course, some form of physical deterioration is expected, especially in high-traffic areas like the lobby, stairs, elevator, and amenity spaces, but that’s no excuse to ignore it. Hotel guests expect a certain standard; offer less, and they’ll be sorely disappointed.
4. Rise in Maintenance Issues
If you notice that you’re doing a lot more repairs and maintenance, and at higher costs too, then obviously, it’s time for a major upgrade.
Yes, maintenance is something you’ll need to do on a regular basis, and business experts suggest pegging the budget for this at around 5% of your hotel’s annual operating budget. Falling behind, however, can quickly lead to escalating costs, deteriorating facilities, and unhappy guests.
When it gets to this point, it’s no longer about fixing problems as they arise; it’s about planning a proper renovation or remodelling to protect your property’s long-term value.
5. Poor Occupancy Rates
As we’ve already noted, guests expect a certain standard when they book a hotel room. They want enough room space for their money, adequate closet space for their belongings, a nice and cozy dining space, maybe even amenities like a pool. When this standard is not met, the occupancy rate can suffer.
According to reports on BTN, LARC projects hotel occupancy rates in the US to decline 1.6% from 2024 levels.
If you’re seeing consistent drops beyond what’s typical for your location, hotel size, and offerings, your property’s current condition could be the culprit. You may want to think about remodelling before it gets out of hand.
Is It Time to Upgrade Your Hotel?
Now it’s time for a reality check. Have you been experiencing any of the signs discussed in this article? If your answer is yes, then your facility is ready for an upgrade.
Amerail Systems put it perfectly: as a hotel operator, you know the power of a strong first impression. If guests aren’t getting the right vibe from the moment they walk in, then something is wrong somewhere.
Hopefully, this article will help you pinpoint the culprit so that you can take steps to set things right.
