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Hotel Sector the Upper House Hong Kong Content SECTOR CAPABILITY HOTEL SECTOR THE UPPER HOUSE HONG KONG CONTENT OVERVIEW 1 KEY ISSUES 2 GLOBAL MARKET DATA 3 COST COMMENTARY 5 SCOPE OF WORK AND SPECIFICATIONS 8 PROJECT HIGHLIGHTS AFRICA 10 AMERICAS 12 ASIA 14 EUROPE 18 MIDDLE EAST 20 OCEANIA 22 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. CONFIDENCE TODAY INSPIRES TOMORROW With a network that covers the globe and a heritage spanning over two centuries, Rider Levett Bucknall is a leading independent organisation in cost management and quantity surveying, project management and advisory services. Our achievements are renowned: from the early days of pioneering quantity surveying, to landmark projects such as the Sydney Opera House, HSBC Headquarters Building in Hong Kong, Marina Bay Sands Integrated Resort in Singapore, the 2012 London Olympic Games and CityCenter in Las Vegas. We continue this successful legacy with our dedication to the value, quality and sustainability of the built environment. Our innovative thinking, global reach, and flawless execution push the boundaries. Taking ambitious projects from an idea to reality. HILTON HAWAIIAN VILLAGE HONOLULU, HAWAII, NORTH AMERICA OVERVIEW We work with hotel investors, developers, operators and brand managers to develop and refurbish hotels across the world. RLB provides a full range of project management, cost consulting and advisory services on hospitality developments across the globe. We have the experience to ensure success on large scale, phased developments, as well as intricate improvement programs on operational hotel and resort properties. Rider Levett Bucknall | Hotel Sector 1 KEY ISSUES There are several issues that need to be addressed at the early stage of the project development to avoid subsequent problems. THE OPERATOR’S BUDGET AND THE PROJECT BUDGET The correct allocation of the FF&E Section must 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 generally includes ■■ Carpet ■■ Nightstand ■■ TV Cabinet/Mini-bar ■■ Sofa ■■ Curtain and tracks ■■ Chest of drawers/ ■■ Armchair ■■ Coffee table ■■ Wallpaper Luggage rack ■■ Desk ■■ Wall lights ■■ Bed and base ■■ Refrigerator ■■ Desk chair ■■ Floor lamp ■■ Headboard ■■ TV and brackets ■■ Desk lamp The operator’s budget includes but not limited to: ■■ Mattress and quilt ■■ Artwork and ■■ Safe deposit box ■■ Kettles/Coffee ■■ Bed spread, sheet sculptures ■■ Shower curtain machine and cover ■■ Cutlery, crockery, ■■ Wastepaper bin ■■ Glassware ■■ Pillows and pillow linen and uniforms ■■ Hairdryers cases ■■ Loose hangers ■■ Toiletries/Amenities RESTAURANTS The interior fitting out, loose furniture, A/V system, decorative light fittings and kitchen equipment typically are categorised in the project budget, whereas the kitchen utensils, china, silver, flatware, hollowware, table linen, house linen and trolleys are generally grouped under 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 tend to 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 can 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. 2 Hotel Sector | Rider Levett Bucknall GLOBAL MARKET DATA The following data represents estimates of current building costs of 3-star and 5-star hotels in the respective market. Costs may vary as a consequence of factors such as site, climatic and market conditions and standards of specifications etc. Hotels Local Currency 5 Star 3 Star Low High Low High AMERICAS Boston USD 4,035 5,920 2,690 4,035 Calgary CAD 3,230 4,845 2,045 2,635 Chicago USD 4,200 6,995 2,850 4,090 Denver USD 2,155 3,335 1,615 1,990 Honolulu USD 5,545 8,020 3,500 5,865 Las Vegas USD 3,765 5,380 1,615 3,230 Los Angeles USD 3,550 5,330 2,370 3,285 New York USD 4,305 6,460 3,230 4,305 Puerto Rico USD 3,830 4,715 2,355 2,950 Phoenix USD 3,230 5,115 1,615 2,690 Portland USD 2,045 2,960 1,615 2,045 San Francisco USD 3,230 5,380 2,690 3,765 Seattle USD 2,475 3,500 2,315 2,475 Toronto CAD 3,230 3,820 2,100 2,800 Washington D.C. USD 3,765 5,650 2,690 3,765 ASIA Beijing RMB 13,000 17,200 9,700 12,500 Chengdu RMB 11,500 14,800 8,660 10,900 Guangzhou RMB 13,000 16,700 9,600 11,700 Ho Chi Minh City VND ('000) 32,400 39,700 24,400 31,500 Hong Kong $HKD 36,800 45,000 30,300 35,100 Jakarta RP ('000) 13,670 17,420 11,140 12,470 Kuala Lumpur RINGGIT 5,000 7,000 2,500 3,500 Macau MOP 31,300 38,500 25,200 29,000 Manila PHP 53,505 61,600 43,190 48,855 Seoul KRW ('000) 3,150 4,680 2,030 2,580 Shanghai RMB 12,900 17,000 9,500 12,300 Shenzhen RMB 12,300 16,000 9,260 11,700 Singapore SGD 4,150 5,450 3,200 3,600 EUROPE Berlin EUR 1,985 2,755 1,355 1,770 Birmingham GBP 2,100 3,000 1,280 1,970 Bristol GBP 2,300 3,100 1,350 1,800 Dublin EUR 2,000 2,200 1,340 1,440 London GBP 2,745 3,690 1,855 2,380 Madrid EUR 1,950 2,600 1,350 1,800 Manchester GBP 2,190 3,000 1,385 1,845 Moscow EUR 2,800 3,500 1,700 2,200 Oslo EUR 3,920 5,090 2,960 3,850 MIDDLE EAST & AFRICA Abu Dhabi AED 8,550 11,400 5,700 8,075 Dubai AED 9,000 14,000 6,000 9,000 Riyadh SAR 8,305 10,110 5,990 7,465 Doha QAR 11,500 14,500 7,500 8,500 OCEANIA Adelaide AUD 3,550 4,450 2,550 3,450 Auckland NZD 4,500 5,500 3,800 4,300 Brisbane AUD 4,000 5,500 2,800 4,000 Canberra AUD 4,030 4,970 2,935 4,095 Christchurch NZD 4,500 5,500 3,800 4,300 Darwin AUD 4,500 5,800 3,400 4,500 Gold Coast AUD 3,400 5,500 2,600 4,000 Melbourne AUD 3,920 5,090 3,110 3,570 Perth AUD 3,600 4,430 2,645 3,635 Sydney AUD 4,230 5,610 2,980 3,770 Wellington NZD 4,500 5,500 3,800 4,300 Rates are in national currency per square metre of Gross Floor Area except as follows: ■■ Chinese cities, Hong Kong and Macau: Rates are per square metre of Construction Floor Area, measured to outer face of external walls. ■■ Singapore, Ho Chi Minh City, Jakarta and Kuala Lumpur: Rates are per square metre of Construction Floor Area, measured to outer face of external walls and inclusive of covered basement and above ground parking areas. ■■ Chinese cities, Hong Kong, Kuala Lumpur, Macau and Singapore: All hotel rates are inclusive of Furniture Fittings and Equipment (FF&E). Source: RLB International Report Third Quarter 2017 Rider Levett Bucknall | Hotel Sector 3 RIALTO, INTERCONTINENTAL HOTEL MELBOURNE, AUSTRALIA Hotel Sector | Rider Levett Bucknall COST COMMENTARY BUILDING HEIGHT Increase in building height will generally result in an increase in the overall cost per unit area of a building, mainly due to extra structural loads for vertical members, wind loading, additional elevator requirements and the cost of vertical risers in mechanical, electrical and plumbing services. BUILDING SHAPE Building shape or configuration is the first impression given to the guests and may be a key factor for them to select a hotel. Building shape may also depend on the designer’s/owner’s theme for the hotel. For example, Hong Kong Disneyland Hotel provides a Victorian style accommodation whilst Hong Kong Four Seasons Hotel provides a contemporary style with a curved building block which would explore the best view of the Victoria Harbour.
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