Hotel Sector

HOTEL SECTOR Rider Levett Bucknall is an independent, global property and construction practice with over 3,500 people in more than 120 offices across Asia, Oceania, Europe, Middle East, Africa and the Americas. Services provided include Cost Management, Project Management and Advisory Services. The firm is committed to delivering high quality outcomes through advice focused on the cost, quality and sustainability of the built environment. The Practice can trace its roots back to the 18th century and prides itself on its dedication to customer care and leading edge, quality service provision. Building Cost Ranges and International Construction Cost Relativities areBuil davailableing Cost Rangin thees RLB and IntelligenceInternational SmartphoneConstruction CoAppst Randelat viaiviti ethes RLBare ava Desktopilable in WebApp. the RLB Int Furtherelligence information Smartphon cane App be and found via thate rlbintelligence.comRLB Desktop WebApp. Further information can be found at rlbintelligence.com To download our free App visit rlb.com/app or scan the QR code. CONTENTS Overview 1 Hotel Star Rating 3 Common Issues 4 Existing Hotels Strategy 7 Cost Commentary 8 Cost Model 11 Scope of Works & Specs 14 Selected Projects 16 Disclaimer: While the information in this publication is believed to be correct at the time of publishing, no responsibility is accepted for its accuracy. Persons desiring to utilise any information appearing in the publication should verify its applicability to their specific circumstances. Cost information in this publication is indicative and for general guidance only and is based on rates at 3Q 2014. OVERVIEW Rider Levett Bucknall works with hotel investors, developers, operators and brand managers to develop and refurbish hotels across the world. In a changing worldwide economic climate, Rider Levett Bucknall has worked on many of the new hotel projects in different countries. Renovation projects continue to be strong due to the ever present issue impacting existing hotels wear and tear. Some of Rider Levett Bucknall’s most recognisable hotel projects include: • Marina Bay Sands Integrated Resort, Singapore • Novotel Hotel Auckland Airport, New Zealand • Hotel InterContinental, Singapore • Waikoloa King’s Land, USA • Capella, Singapore • Hilton Grand Waikikian, USA • PARKROYAL on Pickering, Singapore • JW Marriott Cherry Greek, USA • PS100/Oasia Downtown, Singapore • Sheraton Waikiki & Royal Hawaiian Hotel Renovations, USA • Sheraton Saigon, Vietnam • The Langham (Renovation), USA • Sofitel Plaza, Vietnam • City Center, USA • Trafalgar Hilton Hotel, UK • Four Seasons & Private Residences, USA • Ramada Encore, UK • The Venetian Macau • Novotel, UK • Grand Hyatt Hotel, China • De Vere Hotels and Leisure Clubs, UK • The Peninsula, China • Hyatt Hotel, UK • Shangri-La, China • InterContinental, Australia & Fiji • Regal Hotel, China • Conrad Jupiters, Australia • H1 Deluxe Hotel in Shanghai Disney Resort, China • Crowne Casino, Australia • Four Seasons Hotel, Hong Kong • Crowne Plaza Hotel and Apartment Complex, Australia • Island Shangri-La, Hong Kong • Crown Metropol Hotel, Australia • JW Marriott Hotel, Hong Kong • Palazzo Versace, Australia • The Conrad, Hong Kong • Stamford Plaza, Australia • Mandarin Oriental (Renovation), Hong Kong • Westin Hotel, Australia • Disneyland Hotel and Hollywood Hotel, Hong Kong • Sky City Auckland Convention Centre and Hotel, New Zealand • Upper House, Hong Kong 利比 Rider Levett Bucknall | Hotel Sector 1 HOTEL STAR RATING Hotel star rating systems rank hotels according to quality and are intended to serve as guidelines for customers who wish to make hotel reservations. At the design and planning stage, the hotel star rating systems will give the hotel planners and design consultants an idea of the quality and the approximate cost ranges that can be expected. There is however no unified hotel star rating system across the world. Each country may have a single rating system, a few or none at all. There are certain well defined rating systems that we can make reference to, such as: • China: The Government published booklet GB/7 14308-2010 • USA: Mobil Travel Guides and American Automobile Association • France: The Government published guide • Australia: Australian Automobile Associations • UK: National Quality Assurance Standards overseen by Visit Britain Most of the assessment criteria for the number of stars are based on objective facilities and services provided. These facilities and services may include: • Room sizes and numbers • Room acoustics • Provision of heating and air-conditioning • Provision of bathroom facilities • Provision of recreational and business facilities • Food and beverage outlets • IT provision • Electrical appliances • Elevators • 24 hours reception • Fitting out standard – wow effects Some of the international hotel chains have their own standard or rating. While the star rating provides a very good reference at the planning and design stage of a hotel, it is important for the cost consultant to understand the standard or quality of the hotel expected from the client when the first cost plan is being developed. 利比 Rider Levett Bucknall | Hotel Sector 3 COmmON ISSuES There are several issues that may easily get confused or require attention at the early stage of the project development to avoid subsequent problems. THE Operator’S BuDGET AND THE pROjECT BuDGET The confusion usually occurs at the FF&E (Furnishing, Furniture and Equipment) section of the budget. This should be clearly set out at the beginning of the project and agreed according to the operator’s requirement. Guest ROOm The typical project FF&E budget usually includes: • Carpet • TV Cabinet/Mini-bar • Curtain and tracks • Armchair • Wallpaper • Desk • Bed and base • Deck chair • Headboard • Desk lamp • Nightstand • Sofa • Chest of drawers/Luggage rack • Coffee table • Refrigerator • Wall lights • TV and brackets • Floor lamp The operator’s budget includes but not limited to: • Mattress and Quilt • Shower curtain • Bed spread, sheet and cover • Wastepaper bin • Pillows and pillow cases • Hairdryers • Artwork and sculptures • Toiletries/Amenities • Cutlery, crockery, linen and uniforms • Kettles/Coffee machine • Loose hangers • Glassware • Safe deposit box 4 利比 Rider Levett Bucknall | Hotel Sector COmmON ISSuES (CONT’D) Restaurants The interior fitting out, loose furniture, A/V system, decorative light fittings and kitchen equipment usually are categorized in the project budget whereas the kitchen utensils, china, silver, flatware, hollowware, table linen, house linen and trolleys usually are grouped to operator’s budget. Back Of HOuSE The interior fitting out and loose furniture usually include in project budget whereas office equipment such as the computer system, photocopiers, fax etc. are in operator’s budget. Alternative/SubstituTE Of fINISHING Materials An interior designer is often appointed for a hotel project responsible for the design of the interior fitting out of the hotel. This is an important role as it communicates the brand and feel of the hotel to guests. Many of the finishing materials, fabrics, light fittings, and loose furniture etc. specified or chosen by the interior designer will usually be the newest design or model from the market and sometimes they can be expensive designer brands carrying an extremely high price tag. However, it is very common that at the time of tendering the tenderer will propose alternative materials or substitutes which may be similar to those items specified but at a much lower price at the time of return of the tender. It is important to understand from the client and the interior designer at the time of preparation of the budget whether they are prepared to accept alternative materials/substitute so that the budget shall realistically reflect what is expected at the time of the award of the interior fitting out contract. INTERface BETWEEN INTERIOR fITTING OuT AND GENERAL BuILDER’S WORk The price and quality of works carried out by the general builder and the interior fitting out contractor are usually different. In some circumstances it may be appropriate to combine the roles, and in some projects a higher quality of finish may dictate that the roles be separated. 利比 Rider Levett Bucknall | Hotel Sector 5 EXISTING HOTELS STRATEGY Experience in Dubai will shed some lights on the way forward for many of the existing hotel occurs worldwide. Expo 2020 Dubai will undoubtedly further stimulate the recovering Middle East hotel market, reports Peter Kilby of international construction firm ISG, with a return to 2007/8 levels of activity and property prices. The major challenge facing many of the established hotels in the region, and Dubai in particular, is the volume of hotel stock more than seven years old, set to be in direct competition with newly opened and planned developments in the run up to 2020. Pipeline Hotel Rooms 80,000 70,000 60,000 50,000 40,000 Hotel Rooms 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Source: DTCM The chart above shows that the number of hotel rooms older than seven years old represented only half of total room stock in 2013. The pace of development is dramatic and more than 12,600 new keys are expected to open by the end of 2016 (an increase of c. 21% over total supply in 2013). Thus in order to maintain market position, performance levels and profitability over the long term, Dubai’s established hotels will need to invest in their existing assets. CApEX BecomING

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