Is the capital expenditure necessary for a hotel operation or not1

This time we would like to discuss the value of the capital expenditure: is that worth doing or not?
Edward, the CEO and the owner of a hotel, asked Mr. Inamori* whether or not Edward should conduct the renovation by spending a large amount of capital expenditure by arranging debt. The hotel had already had a debt amount of 19 and Capex was estimated as 5. The hotel annual sales is 8. Mr. Inamori considered well and told Edward. “If I were you, I would not spend 5 but conduct renovation works at smaller scales than you expect. ”
1 Sales are uncertain (there are unforeseeable risks in the optimistic scenarios)

2 Discard preconceptions (patchwork is good enough)

3 Clean up with all employees (the most important thing is to change the minds of employees)

4 Don’t rely on vendors more than necessary (vendors may propose plans to exploit clients)

5 Hospitality mind is the core value of the hotel business (how to get repeaters)

6 Reduce daily expenses with everyone (accumulation of small details is most effective)