This particular work reflects my experience gained during the opening of hotels in Turkey. It is only limited and covers the projects which I was directly involved in. Hence, does not reflect other projects and should not be generalized for the Turkish hotel industry. I hope that it can be used as a tool or an indicator by investors and hotel professional as well as students from around the world.

1. THE ESSENTIALS in HOTEL
OPENINGS
İstanbul-Turkey 2014
Ahmet F. Seymen

2. This work reflects my experience
during the opening of hotels in
Turkey.
My findings only represent the
situation and conditions pertaining to
the hotels I have opened.
It does not reflect other projects
and should not be generalized for the
Turkish hotel industry.

3. Turkish investor profile
Pro’s & Con’s of Investor Companies
Pro’s
High enthusiasm
Young, dynamic & flexible
Lean & not top heavy structure
Quick in decision making & less red rate

4. Turkish investor profile
 Con’s
 Business origins from different industries;
(Construction, Textile, Automotive. Most are not hoteliers)
 Majority are family owned & operated companies;
(Lack of corporate structure, professional staffing and
application of sound business practices)
 Not custom to work with professional firms and
consultants, which deliver research, feasibility
studies, investment reports and concept designs
Pro’s & Con’s of Investor Companies

5. Turkish investor profile Con’s…
 Limited utilizing of funds and incentives offered by
government and institutions
 Limited Access & knowledge in understanding &
applying criteria and specifications of international
hotel chains
 Hesitation in hiring/working with reputable and
professional firms in the industry
(Architects, Interior Designers, Construction Firms, Law &
Legal Offices, Financial Institutions, Consultants)....

6. Turkish investor profile Con’s…
 Lack of comprehending the project as a whole
(Net Rate of Return, analysis of business trends and major
cost contributors)
 Limited knowledge in understanding the disciplines
involved in planning and implementation stages of
hotel opening
 Less willing in hiring of operational staff in the very
early stages of the opening

7. Research Needed for the Project

8.  Socio economical growth
 Present & future demographical growth
analysis
 Growth patterns for Industrial, Agricultural,
Commercial and Technological sectors
 Import & export growth and trends
 Present and planned industrial investments
for next 10 years
ECONOMICAL
Country wide

9.  Location
 Proximity to Airport
 Proximity to major roads and arteries
 City center, Commercial zone, Industrial
zone
 Proximity to Exhibition & Congress area,
Hospitals, Universities, Metro/Train Stations,
Stadiums, Schools, Dorms, Bus Stations,
Museums and Recreational facilities etc.
Economical
Greater Metropolitan Area

10.  Hotels & Lodgings in different categories
(Ministry – Municipality Licensed)
 Concept, Facility & Products offered
 Total rooms & bed capacity
 Yearly occupancies and ADR
 Construction of on-going Hotel projects
 Planed Hotel projects 5-10 years
ECONOMICAL
Tourism Infrastructure

11.  Number of tourist arrivals
 Corporate clients
 Other business clients e.g..
(Convention, Fair, MICE etc..)
 Health & Medical tourists
 Local clients
 Other potential clients
ECONOMICAL
Tourism Infrastructure

12.  Market & Competitor Analysis
A. Analysis of the Greater Metropolitan (GM) Area
Tourism infrastructure and transportation e.g..
Roads, Highways, Trains, Metro, Fairies etc..
 Yearly Income obtained from Tourism & Travel
 Expansion rate of the GM area for the past 10 years
 10 year growth projection for GM areas
B. Location
Unaccommodated demand
Latent demand
C. Competitor Analysis
Analysis of Primary & Secondary competitors
ECONOMICAL

13. Analysis of Government Policy & Procedures
Ministry of Tourism
- Hotel Spec’s & Classification
- Fire Safety & Building Regulations
- Green Hotels & Environmental Regulations
- Building Codes & Regulations
- Handicap Requirements

14. Type Specification Hotels
Budget /
Economy
Room size 12-18m2 net.
Personnel per Room 0.1-0.2/room
Limited F&B facility
Etap, İbis, Holliday-Inn
Express, Easy Hotels
Midscale Room size 20-24m2 net.
Personnel per Room 0.4-0.5/room
Limited F&B facility. Additional facilities
(meeting room, fitness.
Mercury, Holliday Inn,
Courtyard by Marriott,
Hilton Hampton Inn
5 Star &
Upscale
Room size 25-30m2 net.
& up Personnel per Room 0.6-0.8/room
Multiple F&B facilities. Various facilities
with alternative concept and capacities.
Ball room, Meeting rooms, Executive
Floor, Business Centre & Lounge, Spa &
Fitness Center…..
Radisson, Sofitel,
Hilton, Intercontinental,
Marriott

15. Type Room Cost*
Budget/Economy 40.000 - 60.000 Euro
Midscale 60.000 - 100.000 Euro
5 Star & Upscale 150.000 - 200.000 Euro & up
FINANCIAL

16. FINANCIAL
Related Costs Budget Mid Scale 5 star & upscale
Euro % Euro % Euro %
Site & Area
Improvements
3.000 5 5.000 5 10.000 5
Construction 27.000 45 45.000 45 90.000 45
Soft Costs 3.000 5 5.000 5 10.000 5
Technical Equipment 15.000 25 25.000 25 50.000 25
Fixture Furniture &
Equipment
7.200 12 12.000 12 24.000 12
Operating Supplies &
Equipment
3.000 5 5.000 5 10.000 5
Pre-Opening &
Working Capital
1.800 3 3.000 3 6.000 3
Total 60.000 100 100.000 100 200.000 100

17. Critical factors which contribute to
enhance the performance and has positive
impact on the project
1.Location
2.Concept
3.Service & product standardization
4.Being up to date (physically and technologically)
ECONOMICAL

18. Guest Preference Eeconomic Mid Scale 5 Star & Up
Central location Close to venue Easy access 
Welcoming Problem free
check-in/out
Personel service 
Clean Room   
Clean & efficient
bathroom
  
Breakfast Minimal or selective
against charge
Standart buffet
breakfast
Selective &
extended buffet
breakfast
Technically up to
date
  
Facilities Minimum
requirement
4 star requirement 5 star red. &
additional
Educated &
friendly staff
  
Product & service
standards
  
Ecological &
environment
friendly
  
OPERATIONAL

19. Analyzing & understanding the specification
of multi-national hotel chains
1. Design specifications'
(area usage & utilization, guest areas, staff areas,
elevators, corridors, storage facilities, offices',
kitchens, receiving areas etc...)
2. Guest room & bathroom specs
3. General Area criteria’s
(Restaurants, Bars, Meeting rooms, SPA etc…)
4. Electrical & Mechanical specifications
5. Fire & safety regulations
6. Environment friendly & Green Hotel
Specs…
TECHNICAL

20.  Preparation & application of
«PROJCET MANAGEMENT» plan
 Structured work plan & meetings
between; Owning company, Architect
Office, Technical Support Office,
Management Company, Contractors &
subcontractors as well as suppliers.
 Daily field trips to asses the
implementation of scheduled works in
conjunction with «PROJCET MANAGEMENT»
plan
TECHNICAL

21. Construction Phase & Sequence
a. Site & Land improvements
b. Shell & core construction
c. Mechanical Works (ducts, ventilation, heating, water, plumbing,
drainage, shafts & piping…)
d. Electrical Works (High voltage, Bonding, LV, etc.…)
e. Walls & separators (brick, ytong-bims-dry walls etc…)
f.Marble or other wall/surface coverings
g. Ceilings
h. Doors
i. Wall paper
j. Paint job
k. Carpeting, wood floors
l. Fixed & mobile furniture - Décor
m. Lighting (interior-exterior)
n. Exterior & facade jobs - Landscaping
TECHNICAL

22. TECHNICAL
Sequence Days
-
Month
% Days
-
Month
% Days
-
Month
%
Site & Land
improvements, Shell
& core construction
122
-
4
39,0 180
-
6
39,0 213
-
7
30,0
Finishing Works 213
-
7
60,0 300
-
10
60,0 424
-
14
60,0
Defects & re-touches 30
-
1
1,0 60
-
2
1,0 93
-
3
10,0
Total Days / Months 365
-
12
100,0 540
-
18
100,0 730
-
24
100,0

23.  Initiation of Company (Corporation, LTD, Holding)
 Building & other legal permits form local
government authorities
 Electric, Gas & water supply permits
 Permits from Ministry (investment & operational)
 Franchising, Management or Leasing agreements
from National /International
LEGAL

24. 5 critical issues which prolong hotel openings
Municipality & Government Office permits % 40
Obtaining of necessary funds % 30
Environmental & community related issues %12
Timing of construction & work schedule % 10
Contractor & subcontractor issues % 8
LEGAL

25.  Total of 33 years in the Hospitality Industry
 1.st two years working as Receiving Manager and
Assistant Purchasing Manager (OGDEN Food Service)
Miami, USA
 Following 8 years worked as Restaurant Manager &
Director(Dobbs Houses & Restaurant Associates of
America) Miami - New York, USA
 Last 23 years worked as F&B Manager, AGM, GM,
Director of Operations, Area GM, Division President.
(Omni Hotels, Sofitel, Hilton, Ramada, Corinthia,
Dedeman, Byotel-Byomed, CVK Group of Companies
 Total of 16 hotel openings
 Hacettepe University, School of Business, BS
 Florida Int. University, School of Hospitality, MS
AHMET F. SEYMEN