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Property Improvement Plan
Practical Law Glossary Item 2-580-1985 (Approx. 3 pages)
Glossary
Property Improvement Plan
A plan for the renovation of a hotel to bring the hotel in compliance with brand standards imposed by a branded hotel manager or franchisor.
The plan usually includes:
- Specific work that must be performed, such as:
- life safety improvements;
- Americans with Disabilities Act of 1990 (ADA) compliance issues;
- exterior and physical structure upgrades and repairs;
- amenity upgrades; and
- furniture, fixtures, and equipment changes.
- A required timeframe for the improvements, which is typically negotiated.
The branded hotel manager or franchisor usually proposes the property improvement plan either with:
- The branding or rebranding of a hotel on the acquisition of or change in hotel ownership.
- The continued ownership of a hotel. For example, under a long-term management agreement, the hotel manager may have a right to propose a new PIP on designated events or times.