The $40 million refurbishment of the Inter-Continental Hotel Madrid involved renovating 300 guest rooms, facilities, and back-of-house areas over three years while maintaining at least 65% occupancy. A four-phase plan minimized disruption and used low-occupancy periods to maximize work. Major risks like unknown building conditions, delays, and disruptions were identified and managed through risk reports and prioritizing health and safety. Over 600 change orders and 25 provisional items were coordinated on budget. Through careful planning and communication between the project manager and hotel operations, the largest refurbishment in Inter-Continental's European history was completed on time and under budget at high quality.

1. Refurbishment5*Inter-ContinentalHotel Madrid
The $40m project involved the full renovation of 300 guest rooms, Hotel facilities and all back of
house areas. Health and Safety was paramount in all phased construction activities. The
original building had been developed as 3 separate apartment buildings in 1940. A four phase
redevelopment plan was agreed consisting of mock up rooms, new lifts, enabling works and
then 3 separate room phases. The planning aimed to minimize operational disruption, utilize low
occupancy periods to maximize work and keep the hotel at minimum 65% occupancy
throughout the 3 year construction period.
Major risks were identified - change orders due to unknown base build condition, choice of
contractor/sub-trades, material delays, management of deficiencies, missing operational
windows (e.g. low summer occupancy), noise/vibration/dust, design coordination to meet
schedule requirements and importantly delays in client sign off. Risks were allocated, managed
and reported on and risk management came second on all meeting agendas after Health and
Safety.
Brief included the tender process and contract development for Architect, Engineers, Interior
Designer and Construction Manager.
All FF&E (over 50 suppliers) and OS&E was identified, procured, expedited and delivered to
local warehouse in Madrid. Sub trades installed as required.
Over 600 change orders were managed during the construction process, 25 provisional sum
items were identified at tender phase – as the project developed the provisional sum items were
reviewed and included in the ongoing scope growth, always maintaining the agreed overall
budget levels.
Daily site meetings with the Construction Manager and the Project Manager, weekly meetings
between the PM and Hotel Operations, the identification of the Hotel Representative all
contributed to the success of the project.
The project was the largest refurbishment in Inter-Continental’s history in Europe. It was
completed 2% under the approved CAPEX and all phases were completed on time to a
extremely high quality.

2. Inter-Continental Hotel
Madrid, Spain
Client: Bass Hotels & Resorts
Location: Madrid, Spain
Building Area: 259,000 SF
Project Cost: $40,000,000
Completion: 2004
Contract Type: CM / Stipulated Sum
Scope of Services:
Project Management
Cost Management
FF&E, OS&E Procurement