Optimal Planning of Hotel Renovation Projects

Abstract

This paper presents the development of a novel model for optimizing the planning of hotel renovation projects to maximize hotel revenues during renovation work while minimizing project cost. The model is developed in three main modules: optimization, scheduling, and hotel profit modules. The model integrates an innovative methodology that enables renovation planners to select which hotels to renovate during any fiscal year based on an allocated renovation budget and identify an optimal floor renovation start date, optimal overtime hours usage and number of assigned crews for each renovation activity, and an optimal floor renovation order in each hotel. An application example of three hotels is analyzed to illustrate the use of the model and demonstrate its capabilities. The results of this analysis illustrate the novel contributions of the model and its original capability in generating optimal plans for hotel renovation projects that enable hotel owners to maximize revenues of their hotels during renovation work while minimizing hotel renovation costs.