This document provides an overview of key considerations for hotel design and construction. It discusses the importance of balancing project costs, duration and lost profits. Location is emphasized as critical, with proximity to feeder markets and visibility from roads as important factors. The design process is outlined, from schematic design to construction documents. Quality architects, engineers and consultants should be selected. Both design and construction require balancing operational needs with aesthetic goals.

1. Hotel Design/Construction
CEM 350
Class Lecture
Neil Opfer
Construction Management Program
University of Nevada, Las Vegas

2. Managerial
Styles
An Abstract
Managerial Style
Quiz
What Geometric Shape Describes Your Style?

3. HOSPITALITY MISSION:
Buying or making a product or service at
a lower cost and selling it at a higher
price to produce a difference called
profit.
If we can not sell at a higher price than
its cost structure then the endeavor is
totally unnecessary.

4. In Las Vegas We Need
Cost - Competitive With Market
Time - On Time Project Delivery
Quality - Superior To Meet Las Vegas
And World-Class Standards
Cost & Quality Are Specific To Our
Market Niche (Mandalay Bay vs. Circus
Circus and Alexis Park vs. Motel 6)

5. Hotel Project Balancing ActProjectCost
Project Duration
Lost Profits
Indirect Costs
Direct Costs
Total Project CostOptimum
Project
Cost
Optimum
Project Duration

6. What Is The Competition?
Luxor Hotel

7. What Is The Competition?
Hard Rock Café / Hotel/Casino

8. The Competitive Bar Increases
Forum Shops - Atlantis Show $18
Million

9. Competitive Re-Theming Work
Luxor Hotel Addition

10. Competitive Re-Theming Work
MGM Grand Lion Remake - $2 Million

11. Competitive Re-Theming Work
MGM

12. Competitive Re-Theming Work
Fitzgeralds

13. Standards Continually Increase
Hilton Interior Guestroom

14. Beginning To Begin
Developing Your Strategies
Feasibility … Supply And Demand
Evaluating The Competition (Can You
Find A Niche @ High End, Low End??)
Balance Market, Capacity/Design, Cash
Flow And Capitalization
Have A Plan … Any Plan!!!!!

15. Implementation Plan
Capitalization
Design And Development
Construction
Organization, Staffing, Training
Operations
Marketing
Budget

16. Conceptualizing The “Product”
Premise: The PRODUCT of Hospitality
-- What Customers Come to “Buy” and
Hotels “Sell” -- Is an EXPERIENCE.
A Guest Visit or Trip Experience Is the
Sum of the SPACE-TIME-CONTACT
the Customer Has With the SERVICES,
AMENITIES AND GOODS Offered by
the Property.

17. Conceptualizing The “Product”
Create A Product That ….
Satisfies A Customer Need, Want, Or
Expectation At A Price That Creates A Value
… And
Creates A Competitive Niche Which Allows
The Property To Capture A Fair Share Or
More Of Market Demand … And
Is Produced At A Price-Volume-Cost
Relationship That Yields Target Returns

18. Design & Operations Conflicts
Operations wants trouble-free operation
and maintenance with low cost
Designers want to create a sense of
wonderment and amazement (The
WOW Factor!!)
Eventual product/service must strike a
balance between these two extremes

19. Goals And Expectations
Explicitly State And Define Corporate
Mission Statement
Product Goals
Customer Goals
Employee Goals
Marketing Goals
Bottom Line Goals
Community Goals

20. Focus On The Total Experience
SITE Access/Egress And Design
BUILDING DESIGN Exterior/Interior
SERVICES Mix, Concept, And Quality
DELIVERY Operations
PRICE/VALUE Quantity, Quality,
And Fun Factor
“X” FACTOR Is There An Edge??

21. Multi-Dimensional Elements
Tangible “Hard” Elements (Building,
Ingredients (e.g. Food))
Intangible “Soft” Elements (Delivery
(courtesy, professionalism) Ambiance)
“Background” (Comfort, Cleanliness,
Safety (As You Get Older You Take Less
Risks) Do People “Feel” Safe??

22. Property Design Objectives
Build A “Box” Whose Exterior Projects
a “Come See Me, This Is Interesting or
There Is Fun Inside”
Design the Interior That Develops and
Supports the Production of
Entertainment Value: (1) User Friendly
(2) Promotes Traffic Flow (3)
Merchandises the Goods and Services
and (4) Is FUN!!

23. Property Design Objectives cont.
Design Facilitates Efficiency and
Productivity
Design Makes This a Great Place to
Work

24. Product Concept - Summary
Develop the Product WITH THE
CUSTOMER IN MIND
Think MULTI-DIMENSIONALLY
Think in Terms of TOTAL TRIP/VISIT
Be Prepared to Continually REVIEW,
MODIFY, And/or DELETE As
Customers, Competition and Financial
Conditions Change

25. Location, Location, Location
Be the FIRST PROPERTY in the Path of
Your Feeder Market and TURN RIGHT
If Not, Be Visible To On-Coming Traffic
If Not, Be Well-Located Within A
Critical Mass
If Not, Have A “Hook”… A Must See, A
View, Other Amenities, Bigger Or
Unique

26. Location, Location, Location cont.
If Not, Build At Low Cost
If Not, Don’t Build (SOMETIMES THIS
IS THE BEST DECISION!!!!!)

27. Locating The “Box”
Look For:
Ease of Access
Sufficient Room for the “Box,” Parking
and EXPANSION
Zoning, Utilities And Other Necessities
… Current and Future
Tourism Infrastructure: Employee
Housing, Airport, and Other Recreation

28. Design Methodology
Identify the … Services and Outlets
Determine Functional Relationships
Bubble Diagram Layout
Operations, Then Support
Amenities
Building, Then Exterior/External
Independently First, Then Iterate
BALANCE. BALANCE. BALANCE.

30. Design Methodology (cont.)
Finalize the Location and Footprint of
Each Element
Design Each Outlet and Public Area
Cost the Proposed Development
Validate the Relationship of
– € Capital Cost to Operating Cost and Profit
–  Capital Cost to Debt = Risk
Design for Full Expansion and Build
Out!

31. The Design Process
Schematic Design
Design Development
Working Drawings Or Contract
Documents
Construction Bidding & Award
Design/Contract Administration & RFI
(Requests For Information) And Change
Order Process

32. The Design Process
Schematic Design is the 1st phase of the
architects’ basic services. Architect
consults with the owner to ascertain the
requirements of the project and prepares
schematic design studies consisting of
drawings and other documents
illustrating the scale and relationship of
project components for owner approval.

33. The Design Process
Design Development is the 2nd phase of
the architect’s basic services. Architect
prepares from approved schematics the
design development documents
consisting of drawings and other
elements that fix structural, mechanical,
and electrical systems along with
materials choices for owner approval.

34. The Design Process
Working Drawings Or Contract
Documents is the 3rd phase of the
architect’s basic services wherein
drawings and specifications developed to
their final form so that whatever is
shown can be built without any other
instructions or details.

35. The Design Process
Plans Show the Physical Form and
Dimensions of the Design
Specifications Detail the Quality
Parameters of the Design
Between Plans and Specifications There
Should Be No Gaps and No Overlaps
Codes Are Essential Such As Uniform
Building Code (new IBC) and National
Electrical Code

36. Select Quality A/E &
Consultants
Architect Is the Space Planner and
Editor of the Process
Architectural Firms Such As Bergman
Walls, Leo Daly, Etc.
Select Firm That “Sweats the Details”
and Has Good Conceptual Designs
Check Track Record With Past Clients

37. Select Quality A/E &
Consultants (cont.)
Mechanical/Electrical Engineering
Consultant (e.g. JBA Engineers)
Structural Engineering Consultant (e.g.
Martin & Peltyn)
Interior Design Consultant (e.g. Yates
Silverman)
Food Service/Kitchen Consultants
Casino Consultants, etc., etc.

38. Select Quality A/E &
Consultants (cont.)
As Always Check Track Records and
Client References
Who Will Work on YOUR PROJECT??
Write Names of Project Architects and
Project Engineers Into the Design
Contract Documents
Hire an Outside Plan Check Firm for
Peer Reviews
Do Your People UNDERSTAND PLANS

39. The Design Process
Do You “Fast Track” The Design
Process?
If 30% of the plans are done can we start
on the foundations and structure while
the owner is deciding on the looks of the
interior millwork?
Are slow plans the excuse to accelerate
the process??

40. Planning & Executing Projects
Plann'g Time For Execution
Time
Planning Time For Execution
Time
Difference Between Two Projects

41. The Construction Process
Lump Sum General Contracting (May
Be Guaranteed Maximum Price or
GMP)
Construction Manager
Design-Build
Mix Of The Above Types
Should Always Have Independent Owner
Representation

42. The Construction Process
Whether GC, Construction Manager or
Design-Build, all approaches have
advantages and disadvantages
As Always Check Track Records and
Client References
Who Will Work on YOUR PROJECT??
Write Names of Key Contractor
Personnel Into the Const. Contract
Documents

43. The Construction Process
Must Have Independent Quality Control
on Jobsite
Can Hire CM To Monitor Both Design
Process And Construction Process
Ideally Hire Construction In Tandem
With Design - Have Constructability
Checkpoints on Cost and Schedule
Liquidated Damages - Pros and Cons

44. The Construction Process
Contractor Can Provide Costing Review
On Design
Value Engineering By Contractor -
Should Be On A Life Cycle Basis And
Not A Cheapening Basis
For Schedule, Owner Typically Has
Opening Date And We Must Back
Schedule

45. CPM - Precedence Diagram
Notice to
proceed
Procure
carpet
Remove
old carpet
Lay new
carpet
Replace
base trim
Remove
base trim
Remove
furniture
Replace
Furniture
New carpet
complete
Prep for
new carpet
Hotel Lobby Carpet Replacement Critical Path Schedule

46. CPM/Bar Chart Hotel Office

47. The Design Process Revisited
What Do We Need In Terms Of Room
Size And Amenities??
Mauna Kea Hotel Built In Hawaii in
1965 at $80,000 Per 350 Square Foot
Room Or $228 Per Square Foot
Mauna Kea Had 614 Employees For A
300-Room Property
Mauna Kea Turned 1st Profit In 1974

48. Three Main Hotel Areas
Public Areas (Lobby, Restaurants,
Lounges)
Service Areas (Back Of The House)
Guest Rooms
Rule Of Thumb: Hotel Area = Number
Of Rooms x Average Room Size x 2

49. Room Size - International Stds
1 Star = 150 Sq Feet (Bed, shower, and
toilet)
2 Star = 200 Sq Feet
3 Star = 250 Sq Feet (Major Chain)
4 Star = 300 Sq Feet (Average City
Chain)
5 Star = 350 Sq Feet (Deluxe Hotel)

50. Room Dimensions
10 Foot Minimum Width
Average = 12 Foot - 14 Foot Width
Luxury = 15 Foot Width
Length Of Room = 24-30 Foot Including
Bath
Length Of Room = 14-17 Foot Without
Bath

51. Rooms Per Floor
Double-Loaded Corridor = 25-30 Rooms
Per Floor
If Larger Must Add A Stair
1 Maid For 14-16 Rooms

52. Rooms - Public - Service Mix
Guest Rooms Should Equal 50% Of
Square Footage
Public Areas = Service Areas Both At
25% Each

53. 200 Room Downtown Hotel
Front desk/main lobby = 10 SF/Room
Acctg/administration = 10 SF/Room
Function rooms = 24 SF/Room
Restaurant/coffee shop = 18 SF/Room
Cocktail bar = 7 SF/Room
Public circulation/halls = 10 SF/Room
Public restrooms = 4 SF/Room
Total Public Area = 85 SF/ROOM

54. 200 Room Downtown Hotel
HVAC/mechl/offices = 14 SF/Room
Storage = 10 SF/Room
Workshops/maint = 4 SF/Room
Receiving = 7 SF/Room
Main kitchen = 12 SF/Room
Pantry/staff/circulation = 6 SF/Room
– (for function room)
» continued next page

55. 200 Room Downtown Hotel
Cold room/china/bevg = 10 SF/Room
Housekeeping, linen rm = 10 SF/Room
Employee lockers/staff rm = 12 SF/Room
Service circulation areas = 10 SF/Room
Total Service Area = 95 SF/ROOM

56. 200 Room Downtown Hotel
Back of house service, etc = 100
SF/Room
Thus:
85 SF/Room Public Areas
95 SF/Room Service Areas
100 SF/Room Back Of House
280 SF/Room Total Plus
280 SF Guestroom Size
560 SF/Room Total For Hotel

57. Hotel Project Cost Guidelines
1/1000 Of Total Cost To Develop Room
Is Price Per Night
Therefore A $95,000 Total Cost Room
Should Rent For $95.00 Per Night
Site Cost Should Not Exceed 10-15% Of
Total Development Cost

58. For The CEM 350 Class
We Hope You Enjoyed
This Presentation