Bruceshaw launches its first Bruceshaw Voice of 2020 with an investigation into the hospitality sector. Amid political and economic uncertainty, it seems that for the hotel industry, including new developments, business is still booming. Nevertheless, a new hotel project in any economic climate is a serious undertaking with large financial commitments.
So, what does it take to build a hotel?Key topics in the paper include:
Benefits of entering the hospitality industry
There are so many other commercial ventures and opportunities in real estate projects, so if you are an investor and you are planning to put your money into bricks and mortar, what is the benefit of entering the hospitality industry?
Market value
Residential use was a strong player up until recently, but it seems value in that area is softening and confidence is waning. There is a huge range of hotel brands exploring different pockets of opportunity for both business and leisure to fulfil the demand, and that’s not even considering the boutique or independent hotel market.
Building a new hotel
There are many important questions that need to be answered before building a new hotel. This paper looks at how to get the ball rolling, examining location, cost, type of hotel and positioning, end-users and what sort of yield makes the best financial sense? Bruceshaw examines the five stages to take into consideration: the operation, securing finance, the design, pre/post-construction and pre-opening.
What guests are looking for in the 21st century
One of the biggest considerations when looking into the feasibility of a commercial project is the end-user. There are many drivers for hotel guests, but you need to consider the revenue opportunities for non-guests too.
What success looks like
The success of a project is reflected in its yield, which will come from goals being met and happy customers whether hotel guests, non-guests or corporate occupiers, the key is to stick to a solid plan in the first place and offer and product that there is a clear market for.
To build a hotel, you should align the hotel to its locality, users and brand, and seek out informed advisors to create a considered programme and design.
This edition of Bruceshaw Voice was created in conversation with Editor of SPACE magazine Sophie Harper, Partner Chris Patrick, Director Tom Bishop and Project Manager Ikenna Nwimo.
Link to whitepaper > https://www.bruceshaw.com/insights/how-to-build-a-hotel/