Three months ago we reported that construction costs for renovation components were stagnate or even negative and thus it was a great time to renovate. This is still true; however, the trend is that these costs are rising. The overall construction cost are +3.4% over the last 12 months. Labor costs are unchanged but materials are costing more.
Take a look at these key renovation components over the last 12 months:
Our friends on the design side are still keeping their fees competitive. Architect, engineering and interior designer fees are unchanged.
Textiles are going through the roof but we are not seeing this passed on to soft-goods just yet.
Oil prices are trending lower since the beginning of May and hopefully staying below $95/barrel for a while. However, long term I think we all know energy will be expensive and thus mechanical systems renovations are also prudent now.
We spoke to an executive at Pella about window pricing and it was explained that the Federal housing energy rebate ended in 2010 and thus they are truly experiencing reality now. Despite rising glass prices due to energy costs, they must be especially competitive.
While gas prices have risen 27% over the past year (it seems like 127%) and commodity prices in general are going through the roof, we thought it was timely to look at the overall project cost implications for our clients, partners and team members. As in life, there is good news and bad news.
First the bad news: Cost of construction is rising (about 4% over the past year), primarily from the impacts of higher material costs. Some materials like steel, asphalt and copper have increased by double digit percentages. As a result, new-build construction will not be a bargain as one might have hoped coming out of the Great Recession. Actually, construction costs overall are back to mid-2009 levels and just 5% off the all-time peak.
Now the good news: Material costs typically involved in a hotel renovation are steady or have even declined. For example, take a look at these key renovation components over the last 12 months:
Architect, engineering and interior desinger fees are also competitive. Indeed, it is a good time to renovate.A word of caution however; cotton and, as a result, textile costs are skyrocketing. Cotton yards are up 27% and as a result they will have implications for softgoods (bedspreads, sheets, draperies, etc.) Fuel costs are up the same amount and so shipping and freight budgets will need adjusting. This is true for both truck and sea, and as a result, careful evalution is needed for overseas sourcing.
TynanGroup will be updating these key prices regularly so you can make important decisions with your properties and developments.
The Sheraton Phoenix Downtown is currently taking advantage of this positive renovation environment by adding a new rooftop pool bar to the recently opened 1000 key downtown property (pictured below.) Costs were 26% below budget.
Television-Mirror Combinations: A contemporary look for Hotel Bathrooms.
For years, most hoteliers that wanted a 5-star look in their guestroom bathrooms thought this required incorporating stand alone LCD televisions to the already cluttered bathroom vanity area. Typically this involved finding adequate room for the TV, all while competing with the vanity mirror, make up mirror, shelving, towel rack, light sconces, and any bathroom OS&E/accessories found in the vanity area. Another issue was cable management, as these small LCD televisions required power and coax, and having these cables hanging or bundled behind a small television did not portray a tidy 5-star appearance. Additionally, many municipalities had code issues with these television clearance to water sources (sinks and tubs), which sometimes made for some pretty farfetched mounting locations.
In response to this long standing issue and the on-going 5-star demand, manufacturers have now developed LCD televisions that are fully integrated into the bathroom mirror. These mirror/LCD television systems are fogless, remote controlled, include required hotel “smart cards”, are extremely thin (down to 1 inch in thickness), and completely eliminate the unsightly cable management issue, as well as the vanity area clutter. Furthering the clean, contemporary uncluttered look, some manufacturers are also incorporating vanity lighting, thereby eliminating the traditional bathroom light sconce.
As the power source for these mirror/LCD/sconces are hidden behind the mirror (and can be both plug-in and hard-wired), most code issues regarding proximity to sinks and tubs are eliminated.
Prior to incorporating into your design, some things to verify:
Ensure adequate circuit amperage for combined mirror/LCD/sconce. You will need to provide a separate switched circuit if lighting is incorporated into the mirror, as well as a separate circuit for the LCD TV.
Verify acceptability with local code jurisdiction. Although manufacturers state that their products meet all codes, final interpretation comes down to the local jurisdiction.
Verify mirror location provides adequate viewing access to LCD TV. If it is incorporated just for the guest standing at the vanity, the traditional bathroom mirror location will typically suffice. If it is intended to be viewed from the bathtub, some mock-up trial and error exercises should be conducted with various mirror/LCD television locations.
Provide both a power source (hard wire or duplex, depending on manufacture/model requirement) and a coax source behind the mirror in a location that will not encumber mounting hardware. In a renovation, this power/coax relocation may be more difficult. The coax termination may also require an “L” fitting due to limited clearance behind the mirror.
Provide adequate backing for mirror installation hardware (per manufacturer’s recommendations). Since these combined systems are heavier than each single component, drywall anchors are typically insufficient.
Review costs/manufacturers. Although the prices for the combination mirror/LCD/sconce systems have dropped dramatically over the past few years, they are still typically more expensive than individual mirror, sconces and LCD TV’s.
With these systems becoming increasingly more popular and commonplace in high-end restaurant restrooms, sports facilities and homes, more and more guests are expecting the same clean, unencumbered look in their upscale hotel bathrooms, which may ultimately spell the demise of the stand alone bathroom LCD television.
Hotels spend millions of dollars waterproofing the exteriors and roofs of their buildings. With the exception of guestroom bathrooms and public restrooms, one problem that does not get as much attention as it should is the need to waterproof the back-of-house interior areas of the hotel. It does however, get attention when water has infiltrated areas of the building that it shouldn’t.
There are numerous causes of water infiltration generating from inside the building and usually from normal back-of-house activities. These activities can range from simple things such as the use of a hose to clean the loading dock or carts in the cart wash area, to warewashing overspray, ice machine dispensing mishaps, and excessive use of liquids in cleaning BOH areas. Even after all the initial money and effort invested to install FRP, cement board or tile, or expensive flashing systems, the water still seems to find its way through joints and starts to damage the interior of the hotel. Not to mention, water inside a hotel building leads to other costly environmental issues.
A product that TynanGroup has had success with is the use of sprayed on polyurethane coatings. Once used only to protect truck beds, these coatings have evolved technically into a two-component, 100% solids application (no VOCs or solvents), that can be spray applied from as thin as 1/16 of an inch or built up to an unlimited thickness. Due to its seamless application, its flexibility for any movement/expansion, the fact that this material bonds to almost any surface, and its relative inexpensiveness when compared to other water resistant systems, it makes for a great option in these water prone interior areas. Once in place and cured, polyurethane coatings are almost indestructible, and can be used on floors, walls, and if required, ceilings. If some major mishap occurs that actually cuts the polyurethane coating, they can be easily patched at minimal costs.
When using sprayed on polyurethane coatings in food service areas, do your research to ensure that the specific manufacturer/sprayed-on product meets the Food and Drug regulations for a coating having incidental food contact, along with gaining approval from your local health department. (more…)
In the present economy, potential property owners are requesting property assessments and existing owners are looking at capital improvements and renovations that will enhance their product. One reoccurring theme coming from engineering staff members (and contract maintenance) is that many elevator machine rooms housing equipment for hydraulic elevators are not cooling to levels that allow the equipment to function properly. Some may just stress the equipment, shortening the lifespan, while in some cases, heavily used elevators simply shut down until operating temperatures return.
In several cases, mechanical consultants have been engaged to increase conditioned air into the space. This can include mechanical contractors, electrical contractors and elevator companies to install additionally designed equipment. Several “fixes” have been reviewed, after the fact, to have run upwards of $50,000 per room.
One solution for future installations requires the elevator consultant and architect to provide (at least as an alternate), a water-cooled oil heat exchanger. This “tube” runs chilled water from the hotel plant, through a series of coils and very effectively cool the hydraulic oil used by the elevator equipment. The second portion of this option requires the mechanical consultant and architect to provide a chilled water supply and return to the elevator machine room. If this minimum installation is made, the actual heat exchanger can be an easily added option if oil temperatures cannot be maintained.
At a minimum, this solution would extend the life cycle of the equipment. This would also prevent the dilemma of people unable to use an elevator that has shut down and would likewise prevent an expensive remodel under duress.
Not too long ago, the extent of a hotel’s technology was the PBX (the telephone switch). Today, the list of acronyms and complex systems would intimidate even NASA; point of sale (POS), property management system (PMS), key card, Wi-Fi, accounting software, PC network, etc. Now we have the check-in kiosk, a technology that has modernized and simplified the check-in process.
Busy and tired guests don’t want to stand in long reception lines and they are accustomed to check-in technologies at airports. Bringing this technology to hotels gives guests the option of a quick check-in without the hassle of waiting. This way, they can slide their card, get their key, and go to bed.
Over the past two years, the kiosk has become a standard for major operators. In theory, operations has less man-power at the front desk, and the kiosk can improve the bottom line and have a quick payback. Guests may have a better experience if they can check-in faster, the technology works and they don’t feel the hotel service has degraded to robotics.
Sheraton Phoenix Kiosk
Sheraton Phoenix Reception Area- Open for Easy Attendance to Guests
Many of our clients are looking closely at their guests’ preferences and in turn, are installing showers in lieu of tubs. Studies show that most hotel guests use tubs for showering and less than 2% actually use tubs for baths. This reflects that few, if any, baths are drawn these days. Showers provide an advantage over tubs by:
Delivering a more upscale look
Giving back some square feet into an already small space
Providing more lighting by having a glass door instead of a shower curtain
Offering more design options
Getting rid of the awkward and moldy shower curtain
Indeed, we Americans tend to be in a hurry everywhere we go and quick showers accommodate our fast-paced schedules. We are also aging and showers are a safer option because they eliminate the dangerous, giant slippery step over the porcelain cofferdam. Many of us are also germaphobes and would rather not dive into a fungal abyss. Therefore, today, a shower makes a lot of sense when considering a renovation or a ground up, new-build.
Parc 55 Hotel Bathroom
However, we caution our clients that showers are not necessarily cost saving and have other repercussions, including: (more…)
Today, with engineered hard wood flooring, carpet is no longer the only option for the guestroom. The property receives a giant “wow” effect and the perceived increase in quality can bring higher ADR’s and a more residential feel to the homesick traveler.
Canary Hotel Guestroom
Installation speed and thus, significantly less labor, makes this a viable option. At less than $10 ft2 installed, hard wood floors are twice as much as carpet, but may be worth it for that upscale look. As always in renovations, there are other factors to consider:
Area rugs will be necessary. Make sure you consider this in your evaluation.
Furniture will need to have appropriate glides in order to prevent scratches to the flooring.
Overage will be necessary for materials (allow 10%).
Matching wood base is typically more expensive than traditional guestroom base.
Sound transmission to the guestrooms below can be an issue. Make sure you test this in your model room with high heels. If this is a problem, the solution is a cork or nylon underlayment.
Make sure your sub-straight is level. If not the wood floor will “bow”. This may not be noticeable with carpet, but with wood your guest will trampoline to bed. The solution is a cementitious self leveling application prior to wood floor installation.
Remember transition strips to accommodate flooring thickness differences to other types of flooring at the vestibule, corridor and bathroom.
Keep some attic stock for at least 5% of the project just in case you need to repair guestrooms in the future.
Durability for engineered wood floors is an issue as the number of times they can be refinished is limited. However, as compared to carpet, the long term payback should be considered. In other words, the flooring can last 10 – 15 years compared to carpet’s 3 – 5 years.
To see some great guestroom wood floor installations, visit the Canary Hotel in Santa Barbara and the St. Regis Aspen in Colorado- both TynanGroup, Inc. projects.
Our clients renovate their commercial kitchens for a variety of reasons. Some renovate because the existing equipment is antiquated and rundown. Many renovate because the design and existing equipment do not meet current needs. Others renovate simply because they want to change the restaurant concept.
Commercial kitchen renovations can be complicated, and in the past, many clients focused on menu selection, design direction, budget and renovation schedule. A growing number of clients are also now focusing on operating costs, energy and water consumption and the amount of waste generated. The component of the renovation which has the largest impact on these concerns is the kitchen equipment selection. Carefully selecting more efficient kitchen equipment will reduce water, gas, electrical and sewer consumption, which in turn can reduce operating costs.
The Energy Star program provides designers, operators and owners with the tools to select more efficient commercial kitchen equipment. The Energy Star program is a partnership between the US Department of Energy and the US Environmental Protection Agency, which promotes energy efficient practices and products. The use of Energy Star products also allows for potential tax deductions for commercial buildings. More information about tax benefits can be found at: www.energystar.gov
To become Energy Star labeled, a manufacturer’s product must meet specific eligibility criteria and efficiency requirements as outlined by the Energy Star program. The Energy Star program currently labels qualified products for the following categories of commercial kitchen equipment:
Ice Makers
Dishwashers
Refrigerators
Freezers
Steam Cookers
Fryers
Griddles
Ovens
Hot Food Cabinets
Not all products by a manufacturer who produces hot food cabinets, for example, meet Energy Star requirements. For instance, Hatco Corporation manufacturers a one door hot food cabinet model which is Energy Star labeled. The same model with two doors, by Hatco Corporation, is not Energy Star labeled. (more…)
Determining The Right Approach For Your Next Project
Our clients generally have two universal goals for their renovation projects: maximize available rooms during the construction period (to maintain sources of revenue) and increase project efficiency while staying under budget and on schedule. We have had success meeting these objectives by developing customized construction and FF&E installation phasing strategies for each of our renovation projects. Although each phasing approach is uniquely tailored to the individual project, there are general variables that can be investigated to determine the right phasing strategy for your next renovation.
Building Layout: Horizontal or Vertical Approach
Determining the best orientation (horizontal or vertical) for construction is the first step in developing your phasing strategy. Typically, a horizontal or floor-by-floor approach is the most efficient for both the hotel and contractor, since guest-occupied floors are completely isolated from floors under construction. However, in some high rise or older buildings with out-dated MEP systems, shut-off valves often do not correspond to floors, but rather to riser stacks. In these cases, a vertical or room-stack approach should be considered, but it is also a good idea to investigate installing new shut-off valves that enable floors to be isolated. We have found that the cost for new shut valves is negated by the efficiencies gained by the floor-by-floor approach. In this case, the renovation will be limited to fewer floors at a time; plus, your building engineer will be grateful.
Creating the “Waterfall” Phenomenon
Once you have settled on the orientation for the project, work with your contractor to determine the number of floors that enables the contractor to perform at peak efficiency. (more…)
