The PIP Problem: What Hotel Owners Need to Know About the New Wave of Property Improvement Plans

It’s 2025, and across the country, franchise hotel owners are hearing a familiar knock on the door:“Your PIP is due.”

After years of pandemic-era delays, franchisors are reigniting long-dormant Property Improvement Plans (PIPs)—and for many hotel owners, it’s arriving like a financial freight train.

If you’re being told to invest hundreds of thousands into renovations without a guaranteed ROI, you’re not alone—and you’re not out of options.

What’s Behind the PIP Surge?

During COVID, many brands paused or extended PIPs in light of economic uncertainty. Now, with travel demand back and brand standards being reasserted, franchisors are pushing upgrades hard—often with little flexibility on timeline or cost.

Owners are being asked to:

• Replace FF&E that’s still functional

• Upgrade signage, lighting, or landscaping for branding consistency

• Renovate lobbies, bathrooms, or exterior finishes

• Absorb these costs while still recovering financially

Why It’s a Problem for Many Owners

The biggest issue isn’t resistance to improvement—it’s the timing and the financing.

• Cash flow is tight. Many owners are still paying off pandemic-era debts or dealing with staffing shortages.

• ROI isn’t guaranteed. Will a new wall sconce really increase ADR by $10?

• Contractor costs have skyrocketed. Materials and labor are 20–40% higher than 2019 in many markets.

• Lenders are cautious. Getting a renovation loan isn't as easy or fast as it used to be.

For many, the PIP feels like a franchise demand made out of sync with reality.

What Can You Do?

At Hotel Success Now, we help owners navigate these challenges with a strategy-first approach. If you're facing an overwhelming PIP, consider:

🔍 1. Prioritize High-Impact, High-Visibility Changes

Focus first on upgrades that affect guest perception and online reviews: beds, bathrooms, lighting, curb appeal.

🤝 2. Negotiate the Timeline

Franchisors want your property to look better—but they also don’t want to lose a paying flag. You may be able to negotiate a phased timeline or offer a realistic renovation roadmap.

💸 3. Don’t Over-Invest Where It Doesn’t Pay

Not every line item in your PIP has equal revenue value. Focus on what drives ADR and RevPAR, not just cosmetic checklist items.

🧾 4. Document Everything

If you make smart improvements or substitutions, document the results—photos, guest feedback, and revenue changes. Brands are more flexible when you can prove the value.

A Better Conversation With Your Brand

The PIP conversation doesn’t have to be hostile. You just need:

• Clear ROI data

• A reasonable, owner-led timeline

• A focus on revenue—not just standards

  
  

Struggling With Your PIP?

We’ve helped dozens of hotel owners:

• Cut PIP budgets in half through prioritization

• Re-negotiate timelines with franchisors

• Identify financing sources that make sense

• And stay in brand compliance without draining their reserves

👉 Contact us today to review your PIP and build a renovation plan that protects your cash flow and maximizes your return.