Hotel Sector

Ofces around the world

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Contents
Overview 2

Hotel Star Rating

Hotel Statistics

Area Analysis

Common Issues

Cost Commentary

10

Cost Model

12

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 utilize any information appearing in the publication should verify its applicability to their specic circumstances. Cost information in this publication is indicative and for general guidance only and is based on rates at 4th Quarter 2009.

Hotel Sector

Overview
Rider Levett Bucknall work 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 have worked on many of the new hotel projects in mainland China, Hong Kong and Macau. Renovation projects continue to be strong due to the ever present issue impacting existing hotels wear and tear. Some of Rider Levett Bucknalls most recognisable hotel projects include: Hotel InterContinental, Singapore Sheraton Saigon, Vietnam Sofitel Plaza, Vietnam Trafalgar Hilton Hotel, UK Ramada Encore, UK Novotel, UK De Vere Hotels and Leisure Clubs, UK Hyatt Hotel, UK Conrad Jupiters, Australia Crowne Casino, Australia Palazzo Versace, Australia Stamford Plaza, Australia Westin Hotel, Australia Sky City Auckland Convention Centre and Hotel, New Zealand Waikoloa Kings Land, US Hilton Grand Waikikian, US JW Marriott Cherry Greek, US The Venetian Macau Grand Hyatt Hotel, China The Peninsula, China Shangri-La, China Four Seasons Hotel, Hong Kong Island Shangri-La, Hong Kong JW Marriott Hotel, Hong Kong The Conrad, Hong Kong Mandarin Oriental Renovation, Hong Kong Disneyland Hotel and Hollywood Hotel, Hong Kong

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 unied 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 dened rating systems that we can make reference to, such as: China - The Government published booklet GB/7 14308-1997

United States - Mobil Travel Guides - American Automobile Association France Australia UK - The Government published guide - Australian Automobile Associations - 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 sound-proofing Provision of heating and air-conditioning Provision of bathroom facilities Provision of recreational and business facilities Phone system IT provision Electrical appliances Elevators 24 hours reception Food and beverage outlets 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 rst cost plan is being developed.

To showcase our capability in the hotel sector worldwide, this booklet contains essential statistics of many hotel developments and several articles covering some key design and cost issues for hotel projects. We also include a cost model for a hotel project in Hong Kong.

Hotel Sector

HOTEL STATISTICS
Over the years, we have assembled a large data library of hotel area and cost statistics, which are useful in delivering our services in project management and cost consultancy. Some of the more representative data are selected for presentation in the following table: REGION MAINLAND CHINA HONG KONG & MACAU AMERICAS EMEA OCEANIA HOTELS Hotel A Hotel B Hotel C Hotel D Hotel E Hotel F Hotel G Hotel H Hotel J Hotel K Hotel L Hotel M Hotel N Hotel P Hotel Q Hotel R Hotel S Hotel T DESIGN INFORMATION No. of storeys (Above Ground) 14 18 35 17 32 7 40 42 15 4 6 26 8 6 4 17 4 17 No. of Rooms Standard Rooms 180 389 532 120 336 304 345 642 379 166 192 616 94 195 117 212 263 261 Special Suites 55 81 61 22 7 96 54 23 1 10 25 208 36 - - - 72 19 Total Room Nos. (Keys) 235 470 593 142 343 400 399 665 380 176 217 824 130 195 117 212 335 280 Clear Room Height (m) Basic Rooms 2.6 2.4 3.4 3.3 3.4 3 3 3.1 2.64 3 2.4 2.4 2.3 2.3 2.3 2.55 2.9 2.4 Special Suites 2.7 2.4 3.4 3.3 3.65 3 3 4.3 2.64 3 2.7 2.7 2.3 - - - 3 2.4 2 Room Areas (Average in m per room key) Basic Rooms 61 64 44 50 32 34 45 25 37 36 42 50 31 24 19 33 45 30 Special Suites 117 100 103 122 64 48 90 56 97 72 97 66 41 - - - 180 70 Construction Floor Area (CFA) Total CFA in m2 62,600 71,800 92,600 36,300 26,500 46,000 71,300 55,300 30,219 11,068 50,118 48,563 7,883 8,079 4,310 11,482 34,598 16,600 Average CFA in m2 per room key 266 153 156 256 77 115 179 83 80 63 231 59 61 41 37 54 103 59 Average Guest Floor CFA in m2 per room key 88 99 78 77 46 46 89 55 41 38 49 30 31 18 25 39 87 42 Percentage of CFA (%) Car Parking - - - - - - - - 24 - - - 23 27 - - - 8 Guest Floor Area (incl. corridors & lift lobbies) 33 65 50 30 60 40 50 66 52 60 21 51 51 43 69 72 84 71 Public Area 16 23 31 43 10 23 25 19 11 36 27 20 13 12 21 8 8 19 Back of House / Plant Rooms / Other 51 12 19 27 30 37 25 15 13 4 52 29 13 18 10 20 8 2 COST INFORMATION Cost Per Room Key (in US$) Building 328,450 200,887 229,236* 210,898 236,569* 329,935 385,806 251,054 231,580* 89,824 157,354 125,891* 194,455 168,886 76,833 226,642 311,880 127,321 F.F. & E. 275,440 103,117 18,270+ 117,080 1,854+ 147,085 277,159 59,375 + 11,364 23,678 + 26,927 14,071 12,942 27,300 Excluded Excluded Total 603,890 304,004 247,506 327,978 238,423 477,020 662,965 310,429 231,580 101,188 181,032 125,891 221,382 182,957 89,775 253,942 311,880 127,321 Cost per m2 CFA (in US$) Basic Building 536 808 987* 441 2,095* 1,239 1,343 2,346 1,784* 1,303 1,433 2,121* 1,646 2,143 1,159 3,214 2,106 1,679 Building Services 656 479 422 369 905 921 770 645 1,020 544 400 360 650 865 742 952 703 458 External Works 41 28 59 15 62 709 46 28 109 173 126 + 97 145 129 20 211 10 F.F. & E. 1,034 675 117+ 458 24+ 1,279 1,551 714 + 248 409 + 404 316 406 504 Excluded Excluded Total (in US$ / m2) 2,267 1,990 1,585 1,283 3,086 4,148 3,710 3,733 2,913 2,268 2,368 2,481 2,797 3,469 2,436 4,690 3,020 2,147 Total (in US$ / sf) 211 185 147 119 287 385 345 347 271 211 220 230 260 322 226 436 281 199 Exchange Rate of Currencies US$1=RMB6.80 US$1=HK$7.80 - US$1=UK0.60 US$1 = AU$1.10 or NZ$1.35 * Including Interiors + Cost / part of costs included in Building All costs at 4th Quarter 2009 price level, excluding management fees, design fees and reimbursable, hotel operators supplies and equipment, pre-opening expenses,VAT, GST, taxes, etc. Construction Floor Area (CFA): Guest Floor Area: Public Area: Back of House: Plant Rooms: Other: Construction oor areas are measured to the outside face of external walls (or in the absence of such walls, the external perimeter) of the building and include all lift shafts, stairwells and E&M rooms but exclude lightwells and atrium voids. Area of guest oors including guestrooms, corridors, lift lobbies, stores and service stations. Restaurants, ballrooms, pre-function rooms, coffee shops and the associated kitchens, entrance lobbies, lounge, health club, shopping arcade and shops, business centre. Administration ofce, staff changing rooms, staff canteen and the associated kitchen. M&E plant rooms and M&E floors. Other areas not included above, such as refuge oor.

Hotel Sector

Area Analysis
Area Distribution
The area distributions of multi-storey hotels are illustrated in the following charts:
3 Star Hotels 4 Star Hotels 5 Star Hotels

Comparison of room types in different classes of hotels

Hotel rooms are normally classied in different room types: typical, suites, deluxe suites and presidential suites. King and Queen Rooms normally occupy one module. Suites normally occupy two to four modules. F.F. & E. for these rooms are normally better. Executive / Presidential Suites are the most luxurious types of rooms in a hotel. They normally occupy around ten modules. These kinds of rooms will have a living area, dining area, and several bedrooms.
m2

Average room size (net area)

50

11% 13% 6% 70% 20%

10% 26% 65%

4%

10%

5%

60%

The average net room module area of 5/5+ Star hotels is about 50 m2 to 60 m2; 4 Star hotels would be 40 m2 to 45 m2 and 3 Star hotels about 30 m2 to 35 m2. It is not always true that a deluxe hotel would have a larger room area as there would be other factors that determine the room size, e.g. location of hotel, resort style, the hotel operators/ designers requirements. F&B

40

30 3 4 5/5+

Star

Guestrooms

BOH

Public

Notes: Guestroom Area : BOH Area : Public Area : F&B Area :

Guest room oors including corridors and typical lift lobbies. MEP areas, staff areas, engineering workshop, storage, carpark, etc. Entrance lobbies, health club, retail area and other facilities areas. Restaurants, bar, lounge and associated kitchens.

Generally, the major room types in a hotel are King and Queen (double-double) Rooms, which represent about 80% to 90% of the total number of rooms. The proportions for Executive / Presidential Suites are much smaller, about 1% to 3% depending on the class of the hotel. The number of Suites provided in a hotel is also dependent on the class of the hotel. Generally the percentage is about 5% to 10%. The following statistics illustrate the proportions of different types of rooms in hotels. The proportion of Suites is higher in 5/5+ Star Hotels, which is about 10%.

Area ratios in various star rating hotels are slightly different. Generally, area proportion for guestrooms is about 60% to 70% of the total area of a hotel. Public areas are the second largest ranging from 15% to 25%. F&B is typically around 5%. BOH areas occupy the remaining 10%.

3 Star Hotels

4 Star Hotels

5 Star Hotels

The public areas for 3 Star hotels are less when compared with 4 and 5/5+ Star hotels, which tend to have more spacious foyers, waiting areas, etc.

6%
The F&B proportion in 3 Star hotels is higher because of the overall smaller hotel areas resulting from smaller guestroom sizes. On the other hand, F&B areas in 5 Star hotels are more spacious in hotels of higher ranking. Areas for associated kitchens are larger in higher rated hotels as they would be better equipped.

1%

6%

2% 11%

2%

48%

45% 49%

43% 42%

45%

King

Double

Suite

Executive/Presidential

Hotel Sector

Common Issues
Restaurants
The interior tting out, loose furniture, A/V system, decorative light ttings and kitchen cooking equipment usually belong to the project budget whereas the kitchen utensils, china, silver, atware, hollowware, table linen, house linen and trolleys usually belong to operators budget.

Alternative/Substitute of Finishing Materials

An interior designer is often appointed for a hotel project responsible for the design of the interior tting out of the hotel. This is an important role as it communicates the brand and feel of the hotel to guests. Many of the nishing materials, fabrics, light ttings, and loose furniture etc. specied 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 specied 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 reect what is expected at the time of the award of the interior tting out contract.

Back of House
The interior tting out and loose furniture usually belong to project budget whereas ofce equipment such as the computer system, photocopiers, fax etc. are in operators budget. There are several issues that may easily get confused or require attention at the early stage of the project development to avoid subsequent problems.

Interface Between Interior Fitting Out and General Builders Work

The price and quality of works carried out by the general builder and the interior tting out contractor are usually different. In some circumstances it may be appropriate to combine the roles, and in some projects a higher quality of nish may dictate that the roles be separated.

The Operators Budget and the Project Budget

The confusion usually occurs at the F.F. & 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 operators requirement.

Guest Room
The typical project F. F. & E budget usually includes:

The operators budget includes but not limited to: Mattress and Quilt Bed spread, sheet and cover Pillows and pillow cases Artwork and sculptures Cutlery, crokery, linen and uniforms Loose hangers Safe deposit box Shower curtain Wastepaper bin Hairdryers Toiletries / Amenities Kettles/Coffee machine Glassware
9

Carpet Curtain and tracks Wallpaper Bed and base Headboard Nightstand Chest of drawers/Luggage rack Refrigerator TV and brackets

TV Cabinet/Mini-bar Armchair Desk Deck chair Desk lamp Sofa Coffee table Wall lights Floor lamp

Hotel Sector

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 conguration is the rst impression given to the guests and may be a key factor in them selecting a hotel. Building shape may also depend on the designers / owners 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. The cost of the structure and faade varies directly with the building shape. Sample gures in the table below illustrate the effect of the varying plan shapes on the overall cost.

Room Size Room sizes would affect the overall construction cost per m2. The same oor area would accommodate more rooms if the room size is smaller, which means that there will be more vertical elements per m2 and the amenities in the toilets and loose furniture will be denser for smaller room size. Therefore, if a hotel has more number of rooms in smaller sizes, the construction cost per m2 will be higher. However, from the developers point of view, the construction cost per m2 will not be his only consideration in determining the size of rooms. He will have to consider factors such as the value of the land, the overall construction cost and the charge rate per room affordable by the market.

FF&E Each hotel is tailor made to meet a particular market and the requirements of FF&E depend on the owners / hotel operators choice. FF&E shall be providing a comfortable sense, inviting and relaxing environments with services provided. Fittings and nishing must be strong and durable. IT Provision IT provision is a technologically advanced service in newly built hotels. It can be as simple as providing an internet access point in a guestroom or extending to a wireless internet within all areas of the hotel. IT provision is about 4% to 8% of MEP cost or even more depending on the extent of the services.

F&B Food & Beverage services are one of the vital facilities leading to the success of the hotel. Design guidelines of high-end hotels would require a 24-hour operated restaurant. Cost of restaurants area depends on the theme and design and can range from US$2,000 to 5,000+ per square metre. Cost of kitchen area is about US$2,000 to 2,500+ per square metre. Display kitchens are much more costly.

Plan Size m 68 60 52 44 x x x x

A Area m2 1,088 1,440 1,664 1,760

B Girth m 168 168 168 168

C=B X 3 Elevation Area per floor

(Assume 3m oor height)

D=C/A Elevation Factor*

m 16 24 32 40

m2 504 504 504 504 0.463 0.350 0.303 0.286

*Elevation Factor = elevation area per m2 of oor area It shows that if the shape is squarer, less elevation area would be required to enclose the same floor area. Therefore, the elevation to oor area factor is lower, directly impacting the project cost. Different elevation materials will also have a signicant impact on cost. Choices may be restricted by local planning or statutory legislation, but architectural feel may also be a factor.

10

11

Hotel Sector

Cost Model
Model Hotel Building Cost in Hong Kong
Site area : 16,000 m2 Total construction oor area : 50,000 m2, comprising 13,000 m2 podium oors 37,000 m2 hotel tower Number of storeys : 25 Star Rating : 4 Total number of room keys : 490, comprising 390 standards rooms, 99 Suites/ Executive Suites and 1 Presidential Suite Total number of room modules : 600 : US$3,412/m2 Cost per m2 CFA Cost per room module : US$284,327/room

Scope of Works
The model hotel building cost includes for the following items which are normally included in a hotel project: Ground investigation and topographical survey Foundations and substructure Superstructure construction General finishes HVAC installation Electrical installation including ELV Fire services installation Lift and escalator installation Swimming pool filtration plant Plumbing and drainage Gas installation including hot water storage caloriers Building management system Communication and security system External works and landscaping Furnishing, furniture and equipment (FF&E) The model hotel building cost excludes: Works outside site boundary Cutlery, crockery, linen and uniforms Hotel operators equipment and expenses Pre-opening expenses Finance and legal expenses Value of land/land premium Consultants fees and reimbursable

Specication of Model Hotel Building

Foundations and substructure Bored piling, reinforced concrete pile caps, tie beams, substructural columns and walls, ground beams and slabs. Structure Generally in-situ reinforced concrete frame and slab. Facade Curtain wall to tower; window wall, glass wall and curtain wall to podium, BMU. Architectural and builders works Roof coverings, staircases, internal walls and doors, ttings and sundries, sanitary ttings. Internal oor nishes Granite slab / carpet to guestrooms, granite slab to guest bathrooms, carpet to guest lift lobbies / guestroom corridors, granite slab / timber ooring / carpet to public areas. Internal wall nishes Wall paper to guestrooms, granite tiling to guest bathrooms, wall paper / timber panelling to guest lift lobbies / guestroom corridors, granite tiling / timber panelling to public areas. Internal ceiling nishes Plaster and paint / gypsumboard bulkhead to guestrooms, aluminium suspended ceiling to guest bathrooms, gypsumboard suspended ceiling to guest lift lobbies / guestroom corridors, decorative ceiling / metal suspended ceiling to public areas. Building services installations HVAC installation, electrical installation, plumbing, drainage and gas piping system, re services installation, swimming pool ltration plant, lift and escalator installation, building management system, communication and security system.

All costs at 4th Quarter 2009 prices

Section A. Foundations and substructure B. Superstructure (CFA = 50,000 m2) 1 2 3 4 5 6 Structure Facade Architectural and Builders works Podium FF&E (FOH) Guestroom floors FF&E (490 Guest rooms/suites) Building services installation 14,788,000 14,747,000 10,715,000 15,056,000 40,241,000 49,157,000 144,704,000 11,942,000 2,894 239 US$3,412/m2 US$317/sf Total US$ 13,950,000 Cost/m2 CFA US$ 279

Sub-total (Superstructure) C. External works and landscaping

Total 170,596,000 Exchange rate of currencies

US$1= HK$7.80

Note: The above costs exclude design fees, hotel operators supplies & equipment and pre-opening expenses.

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Hotel Sector

Oceania EMEA
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Asia
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Americas
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4Q2009

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