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The Hospitality Renovation Report

The PIP Is Mandatory.
The Workflow Isn't Built For It.

Hospitality design is no longer about finishes — it's about financial performance. New construction is slowing. Renovation, refit, and PIP execution is accelerating — and every decision from concept to installation needs to deliver measurable return. The tools built for greenfield workflows weren't designed for that accountability. Fohlio was.

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20%+
Decline in U.S. new residential starts from 2021–2022 peak
$500B+
Annual U.S. renovation & repair spend — holding and growing
55,000+
Apartment units converted from office in 2023 alone
800
800
Active PIP renovation projects managed by Best Western on Fohlio
Active PIP renovation projects managed simultaneously on Fohlio by BWI Hotels
The Market Shift

PIP Renovation Is a Financial Performance Decision. Treat It Like One.

New starts have fallen more than 20% from their 2021–2022 peak as high interest rates and elevated material costs compress demand. But renovation, refit, and reconversion spending has held above $500 billion annually — and keeps growing. Office-to-residential conversions alone produced over 55,000 new apartment units in 2023. Hospitality refreshes, retail-to-mixed-use adaptations, institutional refits: owners across categories are choosing to reposition existing assets rather than build from scratch.

For hospitality ownership groups and management companies, the pressure point is the PIP. Brand-mandated property improvement plans are non-negotiable — but the procurement and specification workflows used to execute them were built for new construction.

The result: a process that restarts from scratch on every project, where brand standards clash with existing conditions, FF&E sourcing has no repeatable foundation, and schedule risk accumulates before a single item ships. The near-term opportunity isn't to optimize new construction further. It's to build for the work that's actually growing.

Why PIP Procurement Breaks

Renovation Is Structurally Harder to Spec and Source Than New Construction

Every project begins with site-specific unknowns. Existing conditions dictate material choices. Lead times have to flex around demolition discoveries. The platforms built for greenfield workflows — clean fit-outs, repeatable spec packages, predictable BOMs — start to crack under this kind of variability.

01

Your brand standard wasn't written for a 1987 floor plate

Specs written for new builds don't translate cleanly to PIP renovations. Every project becomes a negotiation between what the brand requires and what the existing structure allows. That's not a workflow — it's a bespoke exception process, repeated project after project.

02

Every renovation restarts your sourcing from scratch

There's no repeatable BOM. FF&E that worked on the last property needs to be re-verified, re-quoted, and re-approved. OS&E gets reinvented on every project. Lead times that look fine in March blow up in June when demolition surfaces a surprise — and there's no system to flex around it.

03

You're accountable for the schedule but not in control of it

PIP execution owners carry the timeline and the budget — but they depend on upstream spec decisions and downstream vendor delivery, both of which renovation breaks constantly. Without visibility into where specs stand and what's actually been ordered, the risk accumulates invisibly until it becomes a delay.

Proven in the Field

How Leading Hospitality Brands Use Fohlio to Run PIP Renovation at Scale

Accor Hotels
Automated RFQ processes with controlled data flow and tender format adherence. External supplier collaboration in a structured, centralized environment — no more email chains, no version mismatches.
Procurement automationSupplier collaborationShorter opening timelines
Sandals Resorts
All refurbishment projects consolidated in one platform. Digitized specs shared in real time across teams in different locations. Direct Oracle integration for PO execution — eliminating manual data transfer.
Real-time collaborationOracle integrationDigital transformation

Also trusted by

MarriottHyattIHGDavidson HospitalitySonesta Hotels
What Fohlio Does

Built for the Work That's Actually Growing

Fohlio is a specification and procurement platform purpose-built for hospitality renovation workflows — not adapted from residential software or bolted onto an ERP. It's designed for the way PIP execution actually works: variable specs, flexible sourcing, cross-property standards enforcement, and a procurement process that needs to flex around what the demo team discovers.

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Your Next PIP Doesn't Have to Start From Scratch

See how Fohlio gives procurement, design, and project teams a single platform to spec, source, and execute hospitality renovation — the way it actually works on-site.

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Read the Case Studies