HTM SERIES COMMON MISTAKES IN PLANNING, DEVELOPMENT AND OPERATION HOTEL

August 2014 By Kai Schröter, General Director © HTM Management Consultancy Common Mistakes in Hotel Planning, Development and Operation

HTM is pleased to introduce a new series of Common Mistakes in Hotel Planning, Development and Operation. This series has been prepared in support of owners, developers, , and project managers of .

The following presents the most common mistakes in Hotel Design. It outlines frequent errors and omissions occurring during the design process, which can have long lasting negative impacts on the property’s management, operation and return on investment.

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Hotel developments are different – they are very diverse and quite complicated when compared to any other type of real estate investment and property development. They involve complex and overlapping end- to-end processes, multiple stakeholders, considerable strategic planning and decision making, extensive technical know how and specialist experience in project management, operational equipment, technical services, pre-openings, management and operation of hotels.

Hotel developments are risky – they are more time-consuming and costly. By floor , an average hotel can cost 3 times as much and take 3 times as long to build. 6,500 different items go into a hotel – about 20 into an office block. An average 5 star hotel requires 27 different consultants and around 10‐15% of the budget, the pre‐opening over 10%. Few owners have experience with hotels, few architects specialize in hotel design and few project management firms know how to manage hotel development processes. Common Mistakes in Hotel Planning, Development and Operation

Hotel developments require specific know how – they frequently attract financially potent owners with a background in various sectors – real estate, banking, law, tourism and others, and with a great deal of vanity, but little experience in hotel development. This often leads to wrong decision making in conceptualization, branding, design, , management, operation…and the failure of the hotel. Common Mistakes in Hotel Planning, Development and Operation

Hotel Planning

Common Mistakes in Hotel Market Studies Common Mistakes in Hotel Finance Studies Common Mistakes in Hotel Property Evaluation Common Mistakes in Hotel Property Site Selection Common Mistakes in Hotel Investment Planning and Financing Common Mistakes in Hotel Investment and Business Licensing Common Mistakes in Hotel Conceptualization Common Mistakes in Hotel Planning, Development and Operation

Common Mistakes in Hotel Branding Common Mistakes in Hotel Search and Selection Common Mistakes in Hospitality Consultant Search and Selection Common Mistakes in Hotel Master Planning Common Mistakes in Hotel Business and Operation Models Common Mistakes in Hotel Operator Search and Selection Common Mistakes in Hotel Management Agreement Negotiation Common Mistakes in Hotel Technical Services Contract Negotiation Common Mistakes in Hotel Project Planning Common Mistakes in Hotel Capital Expenditures Budgeting Common Mistakes in Hotel Furniture, Fixtures and Equipment Reserves Common Mistakes in Hotel Planning, Development and Operation

Hotel Design

Common Mistakes in Hotel Design Common Mistakes in Hotel Access Design Common Mistakes in Hotel Exterior Design Common Mistakes in Hotel Common Mistakes in Hotel Operation and Work Flow Design Common Mistakes in Hotel Public Area and Front-of-House Design Common Mistakes in Hotel Back-of-House and Staff Areas Design Common Mistakes in Hotel Guest Room Design Common Mistakes in Hotel and Technical Design Common Mistakes in Hotel Food and Beverage Conceptualization Common Mistakes in Hotel Food and Beverage Outlet Branding Common Mistakes in Hotel Food and Beverage Outlet Design Common Mistakes in Hotel and Laundry Design Common Mistakes in Hotel Common Mistakes in Hotel Planning, Development and Operation

Hotel Development

Common Mistakes in Hotel Project Manager Selection Common Mistakes in Hotel Contractor Negotiations and Selection Common Mistakes in Hotel Project Coordination and Implementation Common Mistakes in Hotel Bill of Quantities Common Mistakes in Hotel Quantity and Quality Surveillance Common Mistakes in Hotel Construction and Site Supervision Common Mistakes in Hotel Site Safety and Security Common Mistakes in Hotel Mechanical and Electrical Engineering Common Mistakes in Hotel Utility Conservation and Environmental Protection Common Mistakes in Hotel Planning, Development and Operation

Common Mistakes in Hotel Technical Services Coordination Common Mistakes in Hotel Pre-Opening Common Mistakes in Hotel Standard Operating Equipment Budgeting Common Mistakes in Hotel Brand Development Common Mistakes in Hotel Marketing, Sales and Public Relations Common Mistakes in Hotel Human Resources Planning Common Mistakes in Hotel Recruitment, Selection and Training Common Mistakes in Hotel Testing, Commissioning and Handover Common Mistakes in Hotel Planning, Development and Operation

Hotel Operation

Common Mistakes in Hotel Soft-Openings Common Mistakes in Hotel General Management Common Mistakes in Hotel Strategic Positioning and Pricing Policies Common Mistakes in Hotel Brand Development Common Mistakes in Hotel Marketing and Sales Common Mistakes in Hotel Strategic Communication and Public Relations Common Mistakes in Hotel Promotion and Advertising Common Mistakes in Hotel Sales and Marketing Common Mistakes in Hotel Digital Marketing and Online Sales Common Mistakes in Hotel Distribution Management Common Mistakes in Hotel Customer Relationship Management Common Mistakes in Hotel Revenue and Yield Management Common Mistakes in Hotel Planning, Development and Operation

Common Mistakes in Hotel Human Resources Planning Common Mistakes in Hotel Human Resources Management Common Mistakes in Hotel Recruitment and Selection Common Mistakes in Hotel Training and Staff Development Common Mistakes in Hotel Rooms Division Management Common Mistakes in Hotel Food and Beverage Management Common Mistakes in Hotel Operations Common Mistakes in Hotel Customer Service and Guest Relations Common Mistakes in Hotel Finance and Accounting Common Mistakes in Hotel Procurement and Purchasing Common Mistakes in Hotel Revenue and Expense Forecasting Common Mistakes in Hotel Operational Budgeting Common Mistakes in Hotel Profit and Loss Analysis Common Mistakes in Hotel Planning, Development and Operation

Critical Areas with Typical Design Errors

Hotel Access and Entrance Hotel Exterior and Signage Lobby and Public Areas Front Office and Reception Porter and Luggage Room Elevators, Corridors and Pantries Guest Rooms and Bathrooms Connecting Rooms Disabled Guest Rooms and Bars Meeting Rooms and Banqueting Areas Spa, Gym and Swimming Pool Common Mistakes in Hotel Planning, Development and Operation

Receiving and Purchasing Areas Cooling and Storage Facilities and Laundry Management Offices and Staff Areas Staff Entrance and Locker Rooms Staff Restaurants and Canteens Guest and Staff Nursery Closed-Circuit Television System Private Automated Branch Exchange System Heating, Ventilation and Air-Conditioning System Water Supply, Treatment and Discharge System Fire Safety and Sprinkler System Main Frame Server and Computer System Property Management System Point-of-Sales System Common Mistakes in Hotel Planning, Development and Operation

The following pages present Top 10 Areas only a few of the myriad of with Most Design Errors in Hotels considerations which shall be made in professional 1 Guest Rooms hotel design. Most of them 2 Back-of-House seem like common sense, 3 Guest Bathrooms but one would not believe 4 Fabric and Finishes how frequent they are disregarded. 5 Food and Beverage Facilities 6 Elevators 7 Function Rooms 8 Lobby 9 Entrance 10 Kitchen

Source: http://www.wgdarchitects.com/survey/results/results.html Common Mistakes in Guest Room Design

We can’t expect architects to know the nuances of operating hotels. So why do we expect them to know how to best design a hotel room in all facets and details?

Seems like ‘common sense’, but still happens all too often. Room Design | Some Examples of What Could Go Wrong

Too Many Rooms Types and Categories A common misperception is that having many types of rooms increases the choice for guests, thereby widening the target market. The reality is, having many different types of rooms creates confusion and pricing issues, affects marketing and sales, and limits the ability to accommodate large groups. At the same time, it increases room cleaning, fit-out and maintenance costs, eating up owner’s profits.

Unsuitable Ratio between Room Types and Categories The ratio between the number of different room types and categories – e.g. single, double, twin or triple room, standard, superior or deluxe room, junior, family or executive , connecting rooms, disabled rooms, smoker- and non-smoking rooms…depends on many factors, which the developer or architect do not necessarily know. This can lead to the difficult situation, where the owner is forced to choose between low occupancy or decrease of room rates. A ‘Make or Break’ scenario. Room Design | Some Examples of What Could Go Wrong

Same Room Types and Categories with Different Configurations The layout, configuration and fitting out of guest rooms depends on hotel property dimensions, brand and operator standards, and budgets, construction ratios etc. Without professional hotel advice, mistakes are programmed and will lead to similar issues as before mentioned – except that often the architect or hotel operator are blamed, instead of the owner… Room Design | Some Examples of What Should Have Occurred

The hotel investor, developer or owner should provide the architect or interior a detailed design brief, including the guest room design standards to apply across all rooms, and tailored to each size and type of room. The design must be driven by maximizing the guest experience and comfort during their stay. The interior designer must also keep in mind the efficiency of daily hotel operation, including the streamlining of guest check in, housekeeping and minimizing of maintenance due to wear and tear.

The owner should appoint a hospitality management consultant, who will work hand in hand with the architect and interior designer during the design phase, in order to minimize costly mistakes that would negatively impact operations, create poor guest experiences and effect profitability and return on investment. Common Mistakes in Guest Bathroom Design

The guest’s room experience is highly influenced by the quality of the bathroom design. The configuration and fitting out very much depends on factors such as hotel property, brand standards, target market, guest preferences, owner’s budget and others. The hospitality management consultant will support owner and architects to make the right decisions. Bathroom Design | Some Examples of What Could Go Wrong

Bathroom is Too Large Inefficient room configuration creates a waste of space and money to build and clean. Visually not attractive. Bathroom is Too Small Even more important than the size of the bathroom is the efficiency and practicality of design. Shower or Bathtub? Where are your guests from? France, Russia, Japan, Vietnam? Do they travel for business or leisure? Do they stay for the long-term or short- term? Choosing between a shower or bathtub depends on the answer to these questions, and many more... Towel Rack in the Wrong Location Guests need to search or reach for the towel while dripping water all over the floor creating a slippage hazard. Is your insurance policy up to date? Bathroom Design | Some Examples of What Could Go Wrong

No Electricity Socket for the Hairdryer It wouldn’t be a problem if all your guests were bald and didn’t need a hair dryer. Bathroom Window without Blinds Some people like privacy. Insufficient Hot Water Capacity This is a very common mistake and it is very annoying for the guest. It also solicits very expensive negative reviews. Mini Bar in the Bathroom This is never a good idea. Bathroom Design | Some Examples of What Should Have Occurred

Bathrooms need to be carefully planned and well designed. They need to be a source of comfort, yet easy to clean and maintain. Lights, mirrors and electrical outlets need to be carefully located so that they are always within reach and in the exact place that the guest would expect. The interior designer must work closely with the hospitality management consultant during the design stage in order to avoid costly mistakes that will lead to difficulties in operation or a poor experience for the guests. Common Mistakes in Food and Beverage Outlet Design

The profitability of the hotel’s food and beverage department depends very much on functionality of operations, whereas owners and architects mostly focus on form and design. Successful F&B businesses combine operational functionality with aesthetic design. Factors must be considered such as room numbers, house guests, walk-in guests, -, food and service concept, menu, meal turnover, average covers, kitchen organization, staffing….The hospitality management consultant will support owner and architects to make the right decisions. F&B Outlet Design | Some Examples of What Could Go Wrong

Mismatch between F&B Concept and Design To be successful and attract guest, F&B concepts need to be attractive and unique. Design must represent this and be consistent. The architect and interior designer follow the hospitality concept, not the other way round. Poor Restaurant Layout and Work Flow Design Inadequate design of F&B outlets by non-hospitality professionals with severe results, such as poor food and service quality, low customer satisfaction, food and beverage hygiene problems, high F&B and breakage costs, occupational hazards and work accidents, low staff morale and high turnover etc. Wrong Restaurant Layout versus Number of Rooms Difficulties to render efficient service with long cues for breakfast, lunch and dinner. F&B Outlet Design | Some Examples of What Could Go Wrong

Bad Buffet Design Wrong location of lighting, selection of heights to display food offerings and wrong location of electrical sockets, wrong buffet dimensions and customer flow, confused design of cold, hot and dessert stations. Bad Bar Design Inadequate allocation of space, cooling units, water and electricity supply, equipment etc., resulting in decreased effectiveness, higher costs Kitchen Design does not match F&B Concept Kitchen is designed too large or too small, layout and equipment are not suitable with operational requirements, work efficiency is low. This results in similar as before mentioned, problems with quality, consistency and volume. Inappropriate Kitchen Design and Installation Kitchen design does not comply with international safety and hygiene standards, leading to work flow problems, occupational hazards, sanitation and pest problems…and ultimately to big headaches for owners. F&B Outlet Design | Some Examples of What Could Go Wrong

Presence of Hazardous Areas Kitchen staff facing risks on a daily basis. Better ensure that the insurance policies are up to date. Inadequate Construction, Workmanship and Supervision This needs to be aided by experienced hospitality project professionals. Poor choice of materials and inadequate installation will result in high safety and hygiene risks and non- compliance with legal obligations. Wrong Installation of Electrical Sockets in Kitchen Difficulties to properly use equipment or to follow cleaning procedures. Bad Design of Exhaust, Ventilation, Air-conditioning, Exhaust and Grease Trap Systems Incorrect temperature, unwanted odors, hygiene and pest problems, low staff motivation. F&B Outlet Design | Some Examples of What Could Go Wrong

Lack of Emergency Light and Fire Systems The fire safety license will not be granted, insurance policy will be void and most importantly, the safety of guests and staff will be compromised. Clean Areas not Separated from Dirty Areas Violation of forward flow principle and HACCP standards. Wet Garbage Area not Separated from Dry Garbage Area May be in breach of local regulations and pose fire safety and hygiene risks. F&B Outlet Design | Some Examples of What Should Have Occurred

The hotel owner should provide the architect, interior designer and other contractors (kitchen) a detailed design brief, including the food and beverage concept and design standards per outlet. Architect, interior designer and contractors should have prior hospitality project and F&B design experience. The design must be driven by maximizing guest experience and comfort, and at the same time maximizing operational efficiency for employees and revenue generation.

The architect and interior designer must work hand in hand with the hospitality management consultant during the design phase, in order to minimize costly mistakes that would negatively impact operations and create a poor guest experience. Common Mistakes in Lobby and Public Area Design

The hotel entrance and lobby are the face of the hotel, and owners and architects pay rightly so much attention to it. However, layout and design of this highly functional requires managerial and operational understanding of hotels. A ‘chic’ and luxury lobby are a waste of money, if inadequate design of reception and other crucial areas cause long queues and waiting of hotel guests… The hospitality management consultant will support owner and architects to make the right decisions. Lobby & Public Area Design | Some Examples of What Could Go Wrong

Size of Seating Area not in Proportion to Room Inventory Crowded lobbies with long cues and lack of seating result in poor guest perception. Inadequate Available Parking Bays Need to ensure that local regulations are followed by the architect. Parking not Available for Physically Challenged Guests This is very important to be able to offer as well as ramps to access buildings. Poor Lighting in Parking Areas Safety and security risks. Insufficient and Poorly Illuminated Signage Guests will have trouble finding their way around the property. Poorly lit signage is a common mistake. Lobby & Public Area Design | Some Examples of What Could Go Wrong

Insufficient Electrical Sockets and in the Wrong Location Operational difficulties especially for cleaning procedures. Under- or Over-building Rather than Utilizing Space Productively Wide and under-built spaces are unproductive and do not generate revenue, but can make all the difference between a profitable or unsuccessful hotel. Crammed and over-built spaces look tight and messy, can effect guest experience and revenue. The hospitality consultant possesses the specialist knowledge and operational experience to develop the right concepts for maximizing use of space and revenue, the owners or architects do not. Lobby & Public Area | Some Examples of What Should Have Occurred

The Lobby and Public Areas need to be carefully planned and well designed. These areas will not only increase revenue, but also improve the quality of work for all staff.

The architect must work closely with the hospitality management consultant during the design phase, in order to avoid costly mistakes that will lead to difficulties in operation or a poor experience for the guests. Common Mistakes in Elevators and Corridors Design

The correct design and location of elevators and corridors will considerably improve the mobility of guests and staff. Elevator & Corridor Design | Some Examples of What Could Go Wrong

Lack of Guest Elevators Long wait times will negatively affect the experience of guests. Wrong Location of Elevators and Goods Lifts Slows down operations and causes decline in service standards. Elevators too Close to Guest Rooms Guests will complain about noise, especially early in the morning when housekeeping staff move around their trolleys. Poor Lighting in Corridors and Pathways Safety and security risks. Inadequate Room Signage Proper allocated and visible room signage is appreciated by guests. Lack of Elevators near Key Outlets Guest facing difficulties to access areas especially at peak times. Elevator & Corridor | Some Examples of What Should Have Occurred

Mobility flows will be affecting daily operations of staff and the experience for guests. The architect should be warned about the potential pitfalls and have a thorough understanding of the function and location of each area. Common Mistakes in Back-of-House Design

The Back-of-House Areas are the heart and muscles of the hotel. Bad design without support from hospitality professionals will seriously affect daily operation. Back-of-House Design | Some Examples of What Could Go Wrong

Inadequate Supplier Entrance and Receiving Area Either no existing separate back-of-house access for daily hotel supply or an access to close to public and guest areas will seriously effect hotel operation and guest experience. Inadequate Staff Entrance and Lack of Staff Facilities No suitable staff entrance, access control, staff changing areas and facilities, staff canteens will result in problems with grooming standards and staff motivation. Inadequate Storage Space Maintaining minimum stocks will forever be a challenge. Wrong selection of Materials for Walls, Floors, Windows and Ceilings Permanent problems of humidity, ventilation, cracks in the masonry and slippery floors. Lack of Water Points and Drainage in Storage Areas Staff will not work efficiently and will fail to follow cleaning, health and hygiene procedures. Back-of-House Design | Some Examples of What Could Go Wrong

Insufficient Garbage Collection Space or in Wrong Location Too small, too far, too close, not safe or not clean – all recipes to invite pest, hinder effective operation or receive guest complaints. Missing Linen, Uniform and Laundry Room The housekeeping manager will have trouble to keep linen standards and organize staff to meet operational needs. Insufficient Working Space for Housekeeping Department Problems to store linen, baby cots, extra beds and trolleys in close proximity to the rooms. Insufficient Departmental Office Space The head’s of department will be obliged to work in improvised offices far from the workflow and with inadequate loose furniture. No Separate Staff Elevators Hotel employees will use guest elevators or have to walk stairs. Not only unsuitable for international standard hotel, but also detrimental to operational costs and guest experience. Back-of-House Design | Some Examples of What Could Go Wrong

Inadequate Hotel Technical not in line with professional hotel standards in terms of sewage treatment, fire, air conditioning, grounding, lighting, rain water harvesting, generator and gas. Will not only cause trouble with local authorities, but even bigger troubles in operation. Hot and Cold Water Capacity Issues Guests experience an unpleasant surprise during their morning shower. Inadequate TV, Camera, Background Music, Telephone, Computer and Audio Visual Systems Bland experience for guests. Back-of-House | Some Examples of What Should Have Occurred

The owner, architect, engineering consultant and project manager shall work and cooperate closely with the hospitality management consultant from an early stage on to avoid costly errors Common Mistakes in Spa, Gym and Pool Design

These areas are especially important for guests who are looking for getaway and leisure trips. Recreation Areas Design | Some Examples of What Could Go Wrong

Inadequate Gym Design Many hotel gym resemble fitness studios without warmth or charm. Inferior Spa and Gym Equipment Equipment fails to meet expectations of guests and standards of the brand. Missing Light Dimmers and Sound System in Treatment Rooms Negatively impact the experience of guests. Insufficient Space for Lockers Complaints from guests. Insufficient Furniture in the Pool Area The purpose of these areas are rest, relaxation and leisure for guests so overcrowding should be avoided. Recreation Areas | Some Examples of What Should Have Occurred

The interior designer should be provided with a detailed design brief, including the concept for the spa and sports/recreation areas, as well as the design standards for each area. The design must be driven by maximizing guest experience and comfort during their stay as well as streamlining the operation for all employees.

The architect must work closely with the hospitality management consultant during the design phase, in order to avoid costly mistakes that will lead to difficulties in operation or a poor experience for the guest. Contact

HTM Management Consultancy

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