HOTEL SECTOR - RLB

1 HOTEL SECTORR ider 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 firm is committed to delivering high quality outcomes through advice focused on the cost, quality and sustainability of the built Practice can trace its roots back to the 18th century and prides itself on its dedication to customer care and leading edge, quality service Cost Ranges and International Construction Cost Relativities are available in the RLB Intelligence Smartphone App and via the RLB Desktop WebApp. Further information can be found at Cost Ranges and International Construction Cost Relativities are available in the RLB Intelligence Smartphone App and via the RLB Desktop WebApp.

2 Further information can be found at download our free App visit or scan the QR 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 Levett Bucknall works with HOTEL investors, developers, operators and brand managers to develop and refurbish hotels across the a changing worldwide economic climate, Rider Levett Bucknall has worked on many of the new HOTEL projects in different countries.

3 Renovation projects continue to be strong due to the ever present issue impacting existing hotels wear and of Rider Levett Bucknall s most recognisable HOTEL projects include: Marina Bay Sands Integrated Resort, Singapore HOTEL InterContinental, Singapore Capella, Singapore PARKROYAL on Pickering, Singapore PS100/Oasia Downtown, 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 InterContinental, Australia & Fiji Conrad Jupiters, Australia Crowne Casino, Australia Crowne Plaza HOTEL and Apartment Complex, Australia Crown Metropol HOTEL , Australia Palazzo Versace, Australia Stamford Plaza, Australia Westin HOTEL , Australia Sky City Auckland Convention Centre and HOTEL , New Zealand Novotel HOTEL Auckland Airport, New Zealand Waikoloa King s Land, USA Hilton Grand Waikikian, USA JW Marriott Cherry Greek.

4 USA Sheraton Waikiki & Royal Hawaiian HOTEL Renovations, USA The Langham (Renovation), USA City Center, USA Four Seasons & Private Residences, USA The Venetian Macau Grand Hyatt HOTEL , China The Peninsula, China Shangri-La, China Regal HOTEL , China H1 Deluxe HOTEL in Shanghai Disney Resort, 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 Upper House, Hong Kong Rider Levett Bucknall | HOTEL Sector1 HOTEL STAR RATINGH otel 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 is however no unified HOTEL star rating system across the world.

5 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 BritainMost 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 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.

6 Rider Levett Bucknall | HOTEL Sector3 There are several issues that may easily get confused or require attention at the early stage of the project development to avoid subsequent OpERATOR S BuDGET AND THE pROjECT BuDGETThe 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 ROOmThe typical project FF&E budget usually includes: Carpet Curtain and tracks Wallpaper Bed and base Headboard Nightstand Chest of drawers/Luggage rack Refrigerator TV and bracketsCOmmON ISSuES TV Cabinet/Mini-bar Armchair Desk Deck chair Desk lamp Sofa Coffee table Wall lights Floor lampThe operator s budget includes but not limited to: Mattress and Quilt Bed spread, sheet and cover Pillows and pillow cases Artwork and sculptures Cutlery, crockery, linen and uniforms Loose hangers Safe deposit box Shower curtain Wastepaper bin Hairdryers Toiletries/Amenities Kettles/Coffee machine Glassware Rider Levett Bucknall | HOTEL Sector4 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.

7 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 Of fINISHING mATERIALSAn 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 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 , 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.

8 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 BETWEEN INTERIOR fITTING OuT AND GENERAL BuILDER S WORkThe 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 ISSuES (CONT D) Rider Levett Bucknall | HOTEL Sector5 HOTEL RoomsHotel RoomsPipeline80,00070,00060,00050,00040, 00030,00020,00010,0000199019921994199619 98200020022004200620082010201220142016 Source.

9 DTCMEXISTING HOTELS STRATEGYE xperience in Dubai will shed some lights on the way forward for many of the existing HOTEL occurs 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 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 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.)

10 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 BECOmING A pRIORITYS taying on track with the standard refurbishment cycle in the HOTEL industry of between five and seven years can prove problematic in a relatively young and dynamic market. A situation that can be exacerbated by the limited choice of qualified 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 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 OpTIONSEven 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).