Académique Documents
Professionnel Documents
Culture Documents
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.
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.
Marina Bay Sands Integrated Resort, Singapore Novotel Hotel Auckland Airport, New Zealand
Hotel InterContinental, Singapore Waikoloa Kings 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
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.
There are several issues that may easily get confused or require attention at the early stage of the project
development to avoid subsequent problems.
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
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 operators 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 operators budget.
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.
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
Hotel Rooms
50,000
40,000
30,000
20,000
10,000
0
0
8
2
10
90
14
94
16
96
98
12
92
0
20
20
20
20
20
20
20
20
20
19
19
19
19
19
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, Dubais
established hotels will need to invest in their existing assets.
Dubai is home to world renowned new-build contractors, but there are major opportunities in the market
for specialists with the expertise and suitable skills-set required to refurbish operating hotels.
Factors to take into account when considering the implementation of a refurbishment program include:
robust impact assessments
plans and strategies to mitigate the effects of lost business
strong reputation management and damage limitation.
Alternative Options
Even with the benefit of a full refurbishment program, some hotels in Dubai may still fail to compete
effectively in future against the much larger and more highly specified new hotels in the emirate
(particularly at the high end). This leaves an owner with two alternatives to refurbishment, both of which
have been exercised in recent years:
Conversion to another brand: in the 1980s and 1990s, the hotel regularly achieving the highest
performance levels was the former InterContinental Hotel on the Creek in Deira. It was rebranded to a
Radisson Blu in 2006.
Redevelopment: the former Metropolitan Hotel Sheikh Zayed Road was demolished in 2012 and its
owner, Al Habtoor Group, is presently constructing the largest hotel complex in the UAE, which will
include 3 luxury hotels with over 1,600 rooms and suites at a cost of AED 4.9 billion.
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 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 figures in the table
below illustrate the effect of the varying plan shapes on the overall cost.
Plan Size Area Girth Elevation Area per floor Elevation Factor*
(Assume 3m floor height)
m. m. sq. m. m. sq. m.
68 x 16 1,088 168 504 0.463
60 x 24 1,440 168 504 0.350
52 x 32 1,664 168 504 0.303
44 x 40 1,760 168 504 0.286
It shows that if the shape is squarer, less elevation area would be required to enclose the same floor area.
Therefore, the elevation to floor area factor is lower, directly impacting the project cost. Different elevation
materials will also have a significant impact on cost. Choices may be restricted by local planning or
statutory legislation, but architectural feel may also be a factor.
Room Size
Room sizes would affect the overall construction cost per sq. m. The same floor area would accommodate
more rooms if the room size is smaller, but in turn there will be more vertical elements per area 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 unit cost will be higher.
However, from the developers point of view, the construction unit cost per area 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 construction cost and the market rate per room.
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 finishing must be strong and durable.
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$2,500 to US$7,000+ per sq. m. Cost of kitchen
area is about US$2,800 to US$3,200+ per sq. m. Display kitchens are much more costly.
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 2% to 5% of MEP cost or even more depending on the extent of the services.
Hotel Building
Cost models for 3-star Hotel and 5-star Hotel in Hong Kong indicate unit cost ranges from HK$27,700
to HK$31,950 per sq. m. and HK$33,600 to HK$40,950 per sq. m. of construction floor area (CFA)
respectively, at 3rd Quarter 2014 price level. The variance in unit costs is mainly due to variations in area
proportions amongst BOH areas, F&B areas, recreational areas and guestrooms; the sophistication of
external faade and hotel interiors.
The cost models are based on building solely for hotel purpose with associated supporting Front of House
and Back of House facilities. In addition, the following items are excluded:
Site formation.
Operating equipment such as hair dryers, trolleys, kitchen utensils, crockery, cutlery, uniform, etc.
Room amenities and expendables such as shower curtains, shower gel, shampoo, etc.
Bed linen including cushions, pillows, bedspreads and blankets, etc.
External work and landscaping outside the building (recreational facilities on podium roof and/or main
roof are however included)
Design fees, consultancy fees, legal, financial and marketing expenses.
3-star 5-star
Range (HK$/sq.m.) Range (HK$/sq. m.)
1. Foundation and substructure 1,750 ~ 2,750 1,700 ~ 3,250
2. Structural frame and slabs 2,800 ~ 3,500 3,000 ~ 4,150
3. External faade 2,650 ~ 3,350 4,500 ~ 5,850
4. Architectural and builders work 4,050 ~ 4,550 4,100 ~ 4,800
5. Building services installations 7,450 ~ 8,050 8,350 ~ 9,650
6. Fitting-out and FF&E 9,000 ~ 9,750 11,950 ~ 13,250
Total : 27,700 ~ 31,950 33,600 ~ 40,950
4. Architectural and
4. Architectural and builders' work
builders' work
Remarks:
The cost model should be regarded as guidelines to indicate the likely range of hotel costs for early stage cost
planning. Actual costs will depend, among others, on the final design and the eventual selection of materials.
This cost model is based on the assumption that the guestroom is rectangular in shape and with a net fit
out floor area of 40 sq. m. In addition, the following items are excluded:
Internal partitioning
Building services installation
IT&T and associated equipment
Artworks
Operating equipment (e.g. bathroom scales, crockery and cutlery, beddings, etc.)
Amenities (e.g. shower gel, shampoo, slippers, etc.)
Design fees, consultancy fees, legal, financial and marketing expenses
Notes:
(a) Fixtures and fittings include built-in fixtures, wardrobe, cabinet, vanity counter, fixed headboard, mini-bar, shower
cubicle, fixed lighting, built-in millwork, curtain track, etc.
(b) Loose furniture and furnishing include desk, desk chair, sofa, coffee table, bedframe, loose bedside cabinet,
luggage rack, loose lighting, curtain/drapery, sheer and blackout, etc.
Remarks:
The cost model should be regarded as guidelines to indicate the likely range of hotel guestroom fit out costs for early
stage cost planning. Actual costs will depend, among others, on the final design and the eventual selection of materials.
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 Swimming pool filtration plant
Foundations and substructure Plumbing and drainage
Superstructure construction Gas installation including hot water storage
General finishes calorifiers
HVAC installation Building management system
Electrical installation including ELV Communication and security system
Fire services installation External works and landscaping
Lift and escalator installation Furnishing, furniture and equipment (FF&E)
Structure
Generally in-situ reinforced concrete frame and slab.
Faade
Curtain wall to tower; window wall, glass wall and curtain wall to podium, BMU.
Rider Levett Bucknall has been involved in the construction of many of the worlds
iconic hotels.
Capella, Singapore
Kings Land by Hilton Grand Vacations Club,
Capella Singapore is a luxury resort hotel on Hawaii, USA
Sentosa Island. Designed by award-winning
The Kings Land by Hilton Grand Vacations Club
concept architect Foster and Partners, it features
time-share resort is located on the Big Island of
a restored colonial building and contemporary
Hawaii, where 6 progressive phases of development
curvilinear structure nestled within green
continue to enhance the project. When complete,
landscapes. Capella comprises 72 guest rooms and
the resort will feature 802 timeshare units, a
suites (the largest in Singapore) and 38 garden
community Center and guest amenities including
villas featuring private pools, business centres,
expansive swimming pools and water features,
restaurants, spas and sculpture garden.
restaurants and recreation facilities.
Client: Pontiac Land Pte
Client: Hilton Worldwide Hilton Grand Vacations
Service provided: Project Management
Service provided: Cost Consultancy
Burj Rafal, Riyadh, Saudi Arabia Tai O Heritage Hotel, Hong Kong
This 62-storey iconic mixed-use tower development The Old Tai O Police Station Grade II historic
including over 300 luxury guest rooms and suites building that built in 1902 was restored and
to be operated by Kempinski Hotels, plus a variety converted into the boutique Tai O Heritage Hotel.
of restaurants, cafes and state-of-the-art business The hotel has 9 rooms and a restaurant. With its
and conference facilities. dedication to promote heritage conservation,
tourism and green living, Tai O Heritage Hotel has
Client: Rafal Real Estate Development Company been awarded by UNESCO, the United Nations
Service provided: Cost Management Educational, Scientific and Cultural Organisation,
with the Award of Merit at the 2013 Asia-Pacific
Awards for Cultural Heritage Conservation.
Client: Hong Kong Heritage Conservation Foundation
Service provided: Quantity Surveying
Hong Kong SkyCity Marriott Hotel Four Seasons Hotel, Hong Kong
Hong Kong SkyCity Marriott Hotel has 658 guest Four Seasons Hotel Hong Kong is a 5-star hotel
rooms, a grand ballroom, 11 meeting rooms, 5 building in the Sun Hung Kai Properties-owned
food and beverage outlets, 24-hour fitness center, International Finance Centre complex in Central,
27-meter indoor swimming pool and Marriotts Hong Kong. It was completed and opened in
signature Quan Spa. The hotel is located next to September 2005. It is a 45-storey building with 399
Hong Kong International Airport and AsiaWorld- rooms, of which 54 are suites and 519 residential
Expo. units, as part of the Four Seasons Place.
Client: Dragages Hong Kong Client: IFC Development
Service provided: Quantity Surveying Service provided: Quantity Surveying
RLB was engaged for the completion of the Client: Great Eagle
5-star Intercontinental Fiji Golf Resort and Spa Group
development, and for the construction of the golf Service provided:
clubhouse which graces the championship golf Quantity Surveying
course adjacent to it. Located 60 kilometres outside
Nadi on the beach of Natadola the resort comprises
270 rooms. Stage one included 216 beach front
rooms and 3 restaurants with stage two delivering
54 executive suites situated at the top of the hill
surrounding the entrance of the resort.
Client: Fiji National Provident Fund
Service provided: Cost Consultancy
Rialto Intercontinental
Hotel, Melbourne,
Australia
The Rialto
Intercontinental Hotel
is the first international
5-star hotel in
Melbournes financial
district. The 253-room
luxury hotel delivers
world-class design
and the latest hotel
technology to meet the
exacting demands of the
modern travellers. The
Rialto Intercontinental Metcourt Hotel, Emperors Palace,
Hotel Melbourne was South Africa
the winner of the
Tourism and Leisure A 20 million capital redevelopment of 92,000 sq.
Developments Category ft. 3-star hotel consisting of 248 keys situated at
in the 2012 Property Emperors Palace Casino complex close to the O.R
Council of Australia / Tambo international airport in Johannesburg, South
Rider Levett Bucknall Africa.
Innovation & Excellence
Awards. Client: Peermont Global
Client: Eureka Funds Service provided: Cost Management
Management
Service provided: Cost
Consultancy