Teaming Up for Value-Up Construction

In the hospitality industry, every square foot and every construction dollar can and should work harder. Unsurprisingly, value-up construction has become more than a simple refurbishment exercise; it’s now a strategic lever for asset enhancement. Yet the true catalyst for unlocking the full potential of value-up projects isn’t just smart design or commercial viability — it’s seamless collaboration.

“Across Asia Pacific, hotel owners are becoming more strategic about capital deployment. Beyond enhancing existing spaces, the real opportunity lies in creating alignment across the investment lifecycle. When asset management and project delivery are fully integrated, it sets the foundation for faster and stronger returns,” explained Xander Nijnens, Senior Managing Director, Head of Advisory & Asset Management, Hotels & Hospitality, JLL Asia Pacific. 

This integrated mindset is reshaping how JLL is approaching value-up projects. Instead of traditional linear processes operating in silo, we advocate a model where strategic planning and project execution work in tandem. We believe that when asset management and project delivery teams are brought together early, the results can be transformational: accelerated project timelines, optimised efficiency, and sharper cost control.

At JLL, our Hotel Asset Management (AM) and Project & Development Services (PDS) teams are distinct but inherently complementary teams.

The AM team acts as a strategic advisor with a clear mandate to maximise investment returns. Nathan Cook, Executive Vice President, Head of Asset Management, Hotels & Hospitality, JLL Japan, explains, "We work on behalf of hotel owners and investors to maximise their value-up investments, in tangible ways and across both the short- and long-term horizons.”

This typically involves conducting in-depth reviews of hotel operator ROI submissions, evaluating additional capital investment proposals, and formulating value-up strategies that align with ownership underwriting and investment goals. The team also analyses market dynamics, benchmarks asset profitability against peers, and ensures capital deployment is targeted, efficient, and results-driven.

Meanwhile, our PDS team focuses on bringing hotel value-up plans to life. They validate plans and, through effective project management, ensure that refurbishments, reconfigurations and construction projects are executed on time, within budget, and to the highest standards. Their services encompass end-to-end project planning, procurement management, construction oversight, and design advisory — blending technical rigour with creativity.

"In hotel value-up construction, it is common to appoint a project manager only after the plan has been formulated. However, by being involved from the project creation stage, we were able to strategically promote the value-up plan in a way that was satisfactory to both the owner and the operator,” reflected Michiyo Takayama, Group Head, Project & Development Management, JLL Japan.

Here's how our integrated approach unlocks 3 powerful synergies from the very get-go:

1. Accelerating Speed-to-Market

Early engagement between the AM and PDS teams enables parallel planning. This allows technical, financial and operational factors to be reconciled in real time, preventing costly redesigns and timeline delays later on. By establishing project feasibility from the outset, the teams operate on a shared and compressed timeline, which allows hotels to start operations sooner rather than later. 

2. Maximising Space Utilisation

Through joint assessments, the AM and PDS teams can better identify and unlock value from underutilised spaces across the hotel footprint. By working in sync, they ensure that every square metre is evaluated not only for its revenue potential but also for its technical and operational viability. This could involve transforming dormant F&B areas, repurposing underused meeting rooms into flexible event spaces, or introducing wellness-centric amenities to elevate revenue potential, improve the guest experience, and enhance market positioning.

3. Improving Cost Control

One of the key challenges associated with value-up construction is maintaining cost control amid rising construction costs. Involving PDS in the project formulation stage allows experienced project managers to identify construction-related issues early, devise optimal solutions, and ensure adherence to the defined budget and schedule. By subdividing the initially envisioned budget, project managers can achieve greater precision in cost management. Early consultation with the PDS team also enables proactive negotiation with hotel operators, which can help prevent unexpected cost escalations. In some cases, this even allows for cost reduction strategies that can maximise asset value without compromising on quality or guest experience.

In a market where timing, capital, and positioning determine success, extracting the most from hotel value-up projects demands strategic synchronisation.

An integrated approach helps hotel owners and operators turn complexity into opportunity, accelerating returns and strengthening asset performance.