January 7, 2019

Hospitality Construction Planning and Trends

By Damian Jarres, Hospitality Strategic Accounts Manager

Ease Your Pain!
Explosive growth in hospitality construction means subcontractors are busier than ever, making it difficult to procure qualified professionals for “fast build, short timeline” projects. However, that shouldn’t discourage you from building your next project, it simply takes the right planning model and construction partner.

Here are three tips to help Ease Your Pain when it comes to your next hospitality construction project:

1. Understand Today’s Construction Environment and Plan Accordingly.
Toto, we’re not in 2009 anymore, which means a feasible concept-to-construction timeline—given all the market forces at work—is currently 12-18 months.
2. Get Consolidated Construction Involved Early.
Our collaborative Hospitality Project Delivery process keeps owners, architects, project managers, crews, and subcontractors on the same page at all times, from concept to construction. All for the benefit of your project, employees, and guests!
3. Subcontractor Success.
Not only can Consolidated assist in all of the efforts mentioned above, we have a network of fully vetted and qualified subcontractors with extensive hospitality construction experience that can handle the scope of your work. The key is planning ahead so we can lock them in to an open window for your project.

Can you build faster than this in today’s environment? Maybe, but you risk compromising the integrity, cost, and control of your project. Consolidated has the expertise and capability to ensure your property is delivered with quality, on time, and within your success budget.

US Hotel Sector Remains in Growth Mode
After contracting from 2007-2009, the US hotel sector is in the midst of an eight-year expansion pattern. According to www.hotelnewsnow.com, lodging demand increased yearly from 2009-2017, enabling U.S. hotels to achieve record occupancy levels each of the past three years. Average Daily Rates are up 28.8% from 2009. Gross Operating Profits have fared even better, up 73.4% from 2009.

Boutique Hotels Edge Further Into the Mainstream
As noted on www.hotelnewsnow.com, panelists at the 6th Annual Independent Lodging Congress said a steady rise in U.S. hotel room demand combined with an appreciation for unique design touches, and improved distribution technology has made it easier for developers to obtain financing to build or redevelop unbranded boutique hotels throughout the country. Many boutique hotels have also been able to boost profitability by charging higher rates than chain hotels with similar amenities.

Damian is the Hospitality Strategic Accounts Manager at Consolidated. He has more than 10 years experience in the hospitality market. Prior to joining CCC, he was the director of development/new construction at Wyndham Hotels and a director of franchise sales at Choice Hotels.

Damian is the Hospitality Strategic Accounts Manager at Consolidated. He has more than 10 years experience in the hospitality market. Prior to joining Consolidated, he was the director of development/new construction at Wyndham Hotels and a director of franchise sales at Choice Hotels.

5 Hotel Trends for 2019
The folks at www.travelmarketreport.com anticipate we’ll see these trends in the hotel industry for the coming year:

1. More enforcement of cancellation fees
2. Lower guest acquisition costs through direct booking: Expect to see more direct marketing, bonuses, and member rates for travelers booking through hotel websites.
3. Longer booking windows: Soaring occupancy rates will make it necessary for hotels to allow guests to book farther in advance.
4. Local food, beverage, and decoration: Celebrity chefs are out as hotels stop competing with fine dining restaurants and turn instead to simple, wholesome, local food service, and locally produced art and decor.
5. Better technology: Poor internet service is such a negative to travelers, hotels will look to add value by enabling guests to connect personal devices to TV screens and hotel services. Hotels are also creating “Instagrammable” scenes on property to encourage photos and high ratings on online review sites for effective (and free) advertising.