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Spring 2006
 
Who Provides What? A Hotel-Owner’s Checklist Provides Answers

Overlooking a single item during the design phase of a construction project may not sound like a big problem. You can, after all, still order and install it after the planning phase is completed. But, in reality, missing even one object or piece of equipment while planning can later cost the owner many times that item’s price.


For instance, if a buffet for a hotel restaurant wasn’t included in the original design plans, adding it later requires not one, but many changes. Along with the buffet itself, you’ll need to adjust for new lighting, plumbing, millwork, electricity, and counter cutouts—all of which affects several subcontractors and incurs much higher costs than if addressed before project drawings were submitted.


Such oversights are bound to occur if the owner and contractor don’t know, at the outset, which is responsible for each needed item. Every type of construction project includes items provided by the contractor and items that fall to the owner, which is why it is advisable to work from a checklist that tells you exactly which items each is responsible for. This is especially true in hotel construction, where unique industry standards and requirements make it less obvious, even to the experienced developer, who should provide what. The best way for you to fill gaps, pare duplications, and prevent unnecessary change orders is to have an idea of what should be on your hotel operator’s checklist and to compare that checklist with your contractor’s in the early planning stages.


What to Expect
As a rule of thumb for most construction projects, the contractor usually covers items permanently installed in the building, such as through-wall heating and cooling units, counters, and front desks, as well as conduit for wiring telephones, computers, and security (however, the owner would be responsible for having the wiring installed for those systems). The owner, on the other hand, is responsible for items you could take along if you moved out of the building, such as furniture, telephones, computers, and small appliances.


But other particulars, especially in the hotel industry, aren’t as apparent. Although the contractor installs carpets and wall coverings, for example, the hotel operator typically provides them, which is also the case for washers and dryers, kitchen appliances, and signage.


Compare and Modify
The items you’ll have to arrange for are, of course, project- and brand-specific, which is why you should check early with the builder and the franchiser to be sure that everything is covered and nothing is duplicated. Request a hotelier’s checklist from the contractor (some provide them) and, if you have hotel experience, bring your own checklist to the conceptual meeting, before plans are submitted or bids go out to subcontractors. Once you’ve chosen a hotel brand, you’ll likely receive an extensive items checklist from your franchiser. All major hotel chains provide them, along with their brand-specific prototypes and standards.


Hilton Hotels Corporation gives each of its franchise owners a 22-page “pre-opening checklist” at the preconstruction phase that covers exactly what is needed, room by room, explains Steve Shiver, Hilton’s northeastern U.S. director of franchise design and construction, based in Memphis, TN. For novice hotel operators, Shiver “walks them through the process” and makes himself available throughout the project to answer questions.

Learn from Industry Experience
While an experienced contractor and franchisor are the primary sources for completing the owner’s checklist, you can also learn from the experience of other hotel operators. Many franchisers will introduce you to hoteliers who have recently constructed the hotel brand you’re building. Before you finalize your items checklist, ask the franchise owner, as well as the project designer and contractor, what they would do differently if they were to build again. And keep in mind that hotel companies often improve their prototypes from year to year, so that “new generations” of particular hotel brands could require standards that are different from the same brands built in past years. 

 
Hotel Checklist
Highlight items on your checklist that the contractor needs to install. Select specific brands early so the architect can include exact specifications in the project drawings three to four weeks into the planning process. This facilitates placement of all utilities (water, drains, electrical) in their optimum locations. Invite input from operations professionals to help determine the best locations for hotel equipment. Moving items later in the process requires design changes, which can be costly.
Budget for furniture, fixtures, and equipment (FF&E) costs during the early planning stage by estimating how much you should budget per room. This figure averages around $7,500 to $8,000, but can amount to more or less, depending on the hotel brand you’re building and the number of modifications you make to the prototype. You’ll be able work up the budget more precisely as project plans progress.
Consider hiring an experienced hotel operator as a consultant during the planning process. The benefits you gain from the consultant’s hotel-planning experience will be well worth the fee, which is a tiny percentage of the cost savings you’ll realize due to efficiencies once construction begins.
Download a sample hotel owner’s checklist.

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