When driving down 20th Street, you may have noticed the extensive scaffolding erected on the exterior of the Hampton Inn & Suites at the 6th Avenue intersection.
The attractive, L-shaped hotel developed by Keith Kite and built by Proctor Construction in 2015, is in the midst of a $3-million renovation that will make it “the fresh new hotel in town,” according to General Manager Brenda Celano.
“Two million of that is for renovations and upgrades mandated by Hilton,” Kite told Vero Beach 32963 last week. “The other million is for things we want to do ourselves to make the hotel nicer and more eco-friendly.”
The mandated part of the proposition is interesting. Turns out hotel brands such as Hampton Inn, which is part of Hilton Hotels & Resorts, require a substantial set of upgrades on a regular schedule to fuel business and protect the brand.
There is a lot to protect. Hampton has been rated the No. 1 lodging franchise in the U.S. for 15 years in a row by Entrepreneur Magazine and company leaders are determined to maintain that rating by keeping properties fresh and contemporary.
To that end, Hilton has a big, bustling Fixed Renovation Cycle Management department to oversee and enforce the process, working in tandem with franchise holders.
“This was part of the franchise agreement we signed back when we started the project,” Kite says. “There will be all new paint, carpeting, wall coverings, artwork, chairs, mattresses, lamps and fixtures, which are all Hilton requirements. We are also upgrading from 42-inch to 55-inch TVs and installing digital locks so guests can check in and access their rooms with their phones.”
Rather than go with a standard Hilton upgrade package, Kite hired his own team to come up with a custom design that fits his aesthetic and the unique vibe of Vero Beach.
“Keith hired HDB Design for the project,” says Celano, who has managed the hotel since it opened. “They put together the custom design and uploaded all the elements to Hilton’s team for their review and approval. Everything went smoothly.
“Pinkerton and Laws are doing the renovations, with Keith overseeing the work.”
In addition to the Hilton requirements, Kite is redoing the exterior of the hotel and installing LED lights throughout, inside and out.
“We used commercial stucco when we built the hotel, but it didn’t hold up as well as we expected,” says Kite. “There has been some cracking and waving due to the weight of the building and settlement. So, we are removing the stucco down to the concrete surface of the walls, sealing the concrete and building up about a two-inch thick engineered insulated exterior envelope that comes with a 10-year warranty.”
Commonly referred to as an EIF system in the industry, the flexible, multilayered, insulating cladding looks much like stucco when installation is complete.
“The new colors will be sky blue and gray on the bottom, with a light, beach sand color on top, clean colors that I really like,” Kite says.
Last week, groups of workers sat shoulder to shoulder two and three stories up on the network of scaffolding that covers the south wall facing 20th Street, carefully chipping the old stucco off the building to prepare for the new cladding, a process that will go on the rest of the summer.
Besides a clean new-hotel look, the insulated wall system will reduce the hotel’s electric bill and carbon footprint. The LED lights and Bluetooth-based digital keys will also cut energy usage.
“They can be programed to automatically turn off the lights and adjust the HVAC when a guest checks out,” says Kite.
Even though periodic renovation is mandated at Kite’s hotel and thousands of other Hampton properties around the world, there is some subtlety to the timing formula, which takes into account things like occupancy levels and customer satisfaction.
Celano says the hotel on Miracle Mile has been very successful since it opened, bouncing back quickly after the pandemic shutdowns and catering to a steady stream of business travelers in government, healthcare and aviation along with leisure travelers, with Hilton loyalty program members making up about 40 percent of guests.
“Our occupancy rate has been so high that Hilton basically doubled our age [due to expected wear and tear from heavy usage] when calculating the need for a refresh,” Celano says.
Based on those metrics, the 61,000-square-foot, 90-room property was due for renovation in 2022, but because guests were still expressing a high level of satisfaction with the hotel, Kite was able to negotiate a two-year extension.
Once the project came due, he added his own extras to boost business and extend the next phase of the hotel’s life.
Renovation started in June and Celano said the new rooms will be complete by the end of October. The hotel has two guest wings and one wing with approximately 45 rooms is under renovation now. When it is complete and ready for guests, the other wing where guests currently stay will be renovated.
Completion of the exterior likely will be affected by weather but Kite hopes to have the entire project completed by Thanksgiving, or Christmas at the latest, so that the hotel is ready for Vero’s winter influx of visitors.
“All the logistics are done. All the material is here in town,” says Kite, who expects to recoup his $3-million investment in 24 to 30 months, due to increased revenue.
Hampton Hotels was founded in 1984 by Holiday Hotels, owners of Holiday Inn at the time, and acquired by Hilton in 1999.
There are two versions of the hotel, Hampton Inn and Hampton Inn & Suites. It costs between $15 million and $25 million to franchise, build and open a Hampton hotel, according to industry clearing house Franchise Direct.
That includes a $100,000 franchise application fee, $11.1 million to $18.6 million for construction, and $1.22 million to $2.33 million for furniture, fixtures, equipment and inventory, depending on the hotel’s size and location.
The $15 to $25 million does not include land lease or purchase costs.
Kite is a longtime Vero Beach commercial property broker who leads Keith Kite Properties at Coldwell Banker Paradise with his son Kollin Kite as his partner.
Besides Hampton Inn and Suites on Miracle Mile, Kite operates two other hotels in Vero – Springhill Suites, a Marriott brand, on Indian River Boulevard adjacent to Grand Harbor, and Star Suites on Flight Safety Drive near Vero Beach Regional Airport.
The Hampton hotel is owned by Vero Beach Hotel Group, a small, private investment group where Kite is managing partner, asset manager and franchise holder.