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A Step by Step Guide To Build A Hotel

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0% found this document useful (0 votes)
145 views

A Step by Step Guide To Build A Hotel

Uploaded by

belyu35
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Step By Step Guide To Build A Hotel

Step By Step Guide To Build A Hotel 1


Step By Step Guide To Build A Hotel

Preface

The thought of owning a Hotel or a Resort can be very exciting for most of us,
either if it’s a big Star Rated Hotel or a small Budget Hotel, Motel or Bed and
Breakfast.

Developing and Building Hotel involves careful coordination of various activities


ranging from Concept Planning to the Grand Opening of the Hotel.

Step By Step Guide To Build A Hotel E Book will explain in detail, on the various
aspects of Hotel development, Construction and Pre Opening, in a simple and
practical way.

It covers various aspects of Hotel Construction and Development process ranging


from Site selection, land purchase and Leasing Land, Hotel Financial projections,
Hotel Feasibility Study, Hotel Project Cost Estimate and Budget, Hotel Concept
development, Hotel Design Guidelines for Hotel Exteriors, Lobby, Guest Rooms
and Corridors, Food and Beverage Outlets, Kitchen, Laundry, Swimming Pool and
other areas of Hotel.

This E Book also covers details on the different Approvals, Permits and Licenses
needed in Building and Operating a Hotel. It Covers Information on Hotel
Construction Planning, Hotel Project Management, information on Hotel
Franchising and Hotel Management Contracts. The all important issue of Raising
Finance and Loans for the Hotel Development and Construction is also covered.

Selection of Hotel Furniture Fixtures and Equipment and Hotel Operating Supplies
and Equipment is also explained. The importance of Hotel Business Plan and the
Hotel Star Classification Process is also detailed.

Final phase of the book would cover the Hotel pre opening details and the budget
phase, before the hotel actually opens. It covers information on the equipment
that is required to operate a hotel, in various departments of the hotel.

Enjoy Reading this Book

Step By Step Guide To Build A Hotel 2


Step By Step Guide To Build A Hotel

Table of Contents

Introduction to Hotel Development 4


Hotel Business Plan 13
Hotel Feasibility Study 26
Hotel Financial Projections 33
Site Selection and Land Acquisition 41
Hotel Licenses Permits and Approvals 48
Hotel Project Team 59
Raising Finance 63
Hotel Franchising and Hotel Management Contract 69
Hotel Project Cost Estimate and Budgets 77
Hotel Concept Development and Design 86
Hotel Design Guidelines 90
Kitchen Design 117
Food and Beverage Outlet Design 126
Laundry Design 136
Hotel Construction 139
Hotel Project Management 161
Hotel Furniture Fixtures and Equipment 192
Hotel Star Classification 198
Hotel Pre Opening Planning 232

Step By Step Guide To Build A Hotel 3


Step By Step Guide To Build A Hotel

Introduction to Hotel Development

Hotel Development is a lengthy and expensive process. There can be various


reasons as to why an investor wants to invest in Hotels instead of other Real Estate
Business: which can range from high return on investment or to attach a Luxury
Product to their portfolio of existing businesses.

Accommodation operation can take many forms, ranging from Hotels, Resorts,
Convention Centers, Serviced Apartments, Theme Parks or Time Share. It can be
on its own or can be a mixed use development with a combination of Hotel,
Apartments and Shopping Center.

Hotels are different from other types of Real Estate investments primarily due to
their daily occupancy and revenue fluctuations, the requirement for specialized
management, and labor intensity.

Understanding the cyclical nature and dynamics of Hotel markets are critical to
good investment decision-making. An initial analysis of market and financial
feasibility is perhaps the most important aspect in Hotel investment decision
making.

Due to many complications, high investment and long duration of Hotel


Development and Construction process, proper understanding of every aspect is
important so as to avoid a costly mistake.

Hotel development process should start with a clear concept as to what outcome
the developer is expecting. For instance an investor should weigh and choose
between the below mentioned variables in the initial process:

• Hotel, Resort, Condominium, Mixed use Etc

• Budget, Economy or luxury Category

• Small , Medium or large in Size

• Limited service or full service

• Catering to Business or leisure Guests

• Modern Architecture or Traditional outlook of the Hotel

Step By Step Guide To Build A Hotel 4


Step By Step Guide To Build A Hotel

• High rise Building or Spread out

The list can be endless depending on the Owners/Investors preferences.

The Development Process typically starts with an idea.

There may be an instance where the owner or investor is already aware of Hotel
operation due to their experience with similar business models or the investor can
be completely new to the industry.

The initial step is to look for and hire a Hospitality Consultant who is either an
individual or a firm, who can advise on the right procedure to start with the
Development process.

Other option would be to take the services of a Development company.


Development companies charge Development Fee which is a percentage of the
total project cost, for the services they provide.

The Owners can coordinate the whole development process themselves if they
have the time and Knowledge. It also depends on how big the project is, which
usually dictates the number of specialists on board.

There are many firms that offer turn key developments, who would design and
also build, handling the whole development and Construction process themselves.

Other option for Owners would be to float a Development company themselves


and get all the specialists on board and coordinate all the process themselves. This
Development Company In Future can undertake various third party Hotel
Development Projects for a fee.

The Development process typically starts with the Site Selection for the proposed
Hotel Project, in case the Owner does not already have a site. The land can be
purchased outright or can also be leased if there is an option for that.

Many investors usually commission a pre feasibility study before a site is selected.
They usually will do it on an average of 3 sites, to select the best possible one.

The next step would be to create an Ownership entity or Name for the proposed
Hotel by registering it as a company, for it to do business under that
Company/Hotel Name, enter in to contracts with various people, during the
Development and Construction process and later on to operate under that name,
once the Hotel is open.

Step By Step Guide To Build A Hotel 5


Step By Step Guide To Build A Hotel

Then would come a stage for the Owners to decide if they want to manage the
Hotel themselves with their own Management or would have to take the services
of a Hotel Management Company to manage their Hotel. This is the time for the
owners to contemplate, if they want to manage the hotel under an independent
name or associate themselves with any particular Brand, by considering a
Franchise for Reservation generation for the Rooms, Marketing exposure for the
Hotel, Expertise and other reasons.

Owners should note that if they want to associate themselves with a brand
through Franchise, then they have to comply with Brand specifications for that
Brand during Construction and Hotel operation stage .These Franchisors also
charge an initial fee during the signing of agreement, which run in to thousands of
dollars.

Raising finance and Loans for Hotel Development from various sources is also an
important aspect of Hotel Development.

Another important aspect would be to deal with the local authorities for licenses
and permits to start with the Development and Construction process.

The importance of a well Formulated Business Plan during the Development


Process cannot be ruled out as it forms the basis for the very existence of the
Hotel, specifying its Objectives, Goals, Vision, Mission etc.This would also help in
raising finance for the Hotel, as most of the investors insist on a good Business
Plan, before even considering Financing or Investing.

Then its time for getting the whole project team on board. They will come on
board at various stages of Hotel Development and Construction Process. Their
main purpose is to help prepare the required documentation for approvals, refine
the Concept, Design and implement the idea .The team would vary depending on
the size of the Hotel, but the following persons will always be on any Hotel
Development Team:

Owner
Developer (if Development is done by a Development Company)
Architect
Interior Designer
Various Engineers (Structural, Civil, Mechanical, Electrical, Plumbing)
General Contractor/Construction Manager
Sub Contractors
Quantity Surveyor
Landscaping Architect
Legal Advisor
Project Manager

Step By Step Guide To Build A Hotel 6


Step By Step Guide To Build A Hotel

Accountant
Various Consultants (Food Service, Kitchen, Laundry, Lighting, Feasibility, FF&E
etc)
Operator (Franchisor) Representative (if Franchising is considered)
Purchase Coordinator

Next comes the bidding process for Construction and bids from Construction
Companies are called for and the selection of General Contractor is done, which
will lead to the actual Construction process and Project Management.

Once the Construction process is through and the Required Furniture, Fixtures
and Equipment are installed and Punch List is cleared, the project is transferred
from the project team to the Operations team, which is the start of the Hotel pre
opening stage.

The Owners then select the Management Team and the staff during the pre
opening process, which will ultimately lead to the actual opening of the Hotel.

To summarize the whole Development and Construction process briefly:

• Identify site
• Acquire Land
• Obtain third party feasibility, environmental, geotechnical and design Study.
• Develop initial 5 year operations budget and construction budget
• Draft preliminary drawings
• Engage architect and engineers for complete plans and budget
• Arrange franchise license
• Conduct and complete interviewing and bidding process for contractor
• Establish scheduling of all building phases
• Commence construction
• Provide extensive construction project management services
• Begin pre-opening process
• "Punch out" final building and obtain a certificate of occupancy
• Open the Hotel for business

Below listed is a Hotel Project Checklist or Project Brief, outlining all the
important information pertaining to the Project.

Step By Step Guide To Build A Hotel 7


Step By Step Guide To Build A Hotel

Hotel Project Brief


Name of the hotel :

Address :

City :
Hotel’s proposed date of opening:
Distance from the city centre :
Distance from the air port:
Distance from the railway station :
Distance from main bus stand :
Nature of business of promoting company:

Brief profile of directors:

Name of the consulting companies used for the project

Architect :
Structural Engineer :
H.V.A.C consultant :
Electrical consultant :
Plumbing consultant :
Fire & safety consultant :
Facility planning :
Interior Designer :
Landscaping :
Name of the Contractors used for the project
Building :
H.V.A.C :
Electrical :
Plumbing :
Fire & safety :
Interiors execution :
Landscaping :
Manufacturer quantity capacity
Air conditioning plant
Diesel generator

Step By Step Guide To Build A Hotel 8


Step By Step Guide To Build A Hotel

Hot water boilers


Steam boilers
Guest elevators
Service elevators
Kitchen equipment
Laundry equipment
Electrical panel
Water treatment plant
Sewage treatment plant
Epabx
Plant, machinery & equipment ii
Land information
Title of land – lease hold / free hold :
Period of lease :
Date of purchase / taken on lease :
Previous owners (if any) :
Relationship between the previous and present owners :
Is it an approved hotel site:
Permissible Floor Space Index :
Proposed Project cost
Land (including site – development):
Building :
Plant & machinery :
Furniture & fittings :
Office equipments :
Vehicles :
Other articles (to specify):
Total project cost incurred:
Cost per key (w/ land):
Cost per key (w/o land):
Owners / promoters contribution:
Project funded by :
Loans :
Name of the financial institution / bank:
Rate of interest:
Proposed financing source :
Construction details
Plot area (sq. M.)
Covered areas (sq. M)
Built up area (sq. M.)
Car parking area – open (sq. M)

Step By Step Guide To Build A Hotel 9


Step By Step Guide To Build A Hotel

Underground car parking area


Floor Space Index
Total Floor Space Index area
Number of floors
Guest rooms
Total standard rooms
No. Of standard rooms
Area of standard room including vestibule (sq. Ft.)
Area of toilet (sq. Feet)
No. Of double bedded rooms
No of twin bedded rooms
No. Of executive suites
Area of executive suite ( sq. Feet)
Area of toilet (sq. Feet)
Nos. Of presidential suites
Area of presidential suite (sq. Feet)
Area of toilet (sq. Feet)
Width of the main corridor
Public areas
Lobby
Area in sq. Feet
Seating capacity (nos.)
Area of lobby toilets ( gents and ladies) (sq. Feet)
Shopping
No. Of shops
Total area in sq. Feet
Business centre
Area in sq. Feet
Location
Restaurant – All Day Dining
Area (sq. Feet)
No. Of covers
Location
Restaurant – Fine Dining
Area ( sq. Feet)
Location
No. Of covers
Bar
Area ( sq. Feet)
Location
No. Of covers

Step By Step Guide To Build A Hotel 10


Step By Step Guide To Build A Hotel

Ball Rooms
Nos. Of ball rooms
Area of each hall ( sq. Feet)
Location
Meeting room
Area ( sq. Feet)
Location
Banquet toilets – ladies
Area ( sq. Feet)
Banquet toilets – gents
Area ( sq. Feet)
Swimming pool
Pool area (sq. Feet)
Capacity of pool (ltrs.)
Health club
Area (sq. Feet)
Location
Service areas
Kitchen – main
Area (sq. Feet)
Location
Kitchen banquet
Area ( sq. Feet)
Location
Laundry
Location
Area ( sq. Feet)
Back office
Area of front office behind reception (sq. Ft.)
House keeping
Total area in sq. Feet
Engineering
Area ( sq. Feet)
Personnel & welfare
Area of administration office ( sq. Feet)
Area of staff lockers ( sq. Feet)
Area of staff cafeteria (sq. Feet)
Goods – handling
Area of main store ( sq. Feet)
Area of receiving (sq. Feet)
Area of garbage rooms (sq. Feet)
Executive office

Step By Step Guide To Build A Hotel 11


Step By Step Guide To Build A Hotel

Areas
General manager office (sq. Feet)
F & b manager office (sq. Feet)
Sales office ( sq. Feet)
Front office manager (sq. Feet)
Others (sq. Feet)
Fire & safety – installation
Hydrant system
Fire alarm and detection system
Sprinkler system

Step By Step Guide To Build A Hotel 12


Step By Step Guide To Build A Hotel

Hotel Business Plan

The primary purpose of a Business Plan is to create a written outline that evaluates
all aspects of the economic viability of business venture including a description
and analysis of business prospects.

The purpose of business plan is to outline how you intend your business to
succeed. This will involve looking in detail at the current business and market
place and identifying how the business can be improved.

A good business plan will evolve over time and needs to be reviewed on a regular
basis.

Business plan will become your roadmap to chart the course of your business. But
at the outset you cannot predict all of changing conditions that will surface. So
after you have opened for business, it is important that you periodically review
and update you plan

Why Prepare A Business Plan?

Business plan is going to be useful in a number of ways:

• First and foremost, it will define and focus your objective using appropriate
information and analysis.
• You can use it as a selling tool in dealing with important relationships
including your lenders, investors and banks.
• Your business plan can uncover omissions and/or weaknesses in your
planning process.
• You can use the plan to solicit opinions and advice from people, including
those in your intended field of business, who will freely give you
invaluable advice.

What to Avoid in Your Business Plan

Place some reasonable limits on long-term, future projections. (Long-term means


over one year.) Better to stick with short-term objectives and modify the plan as
your business progresses. Too often, long-range planning becomes meaningless
because the reality of your business can be different from your initial concept.

Step By Step Guide To Build A Hotel 13


Step By Step Guide To Build A Hotel

Avoid optimism. In fact, to offset optimism, be extremely conservative in


predicting capital requirements, timelines, sales and profits. Few business plans
correctly anticipate how much money and time will be required.

Do not ignore spelling out what your strategies will be in the event of business
adversities.

Use simple language in explaining the issues. Make it easy to read and understand.

Business Plan Format

• A Vision Statement: This will be a concise outline of your business purpose


and goals.
• The People: By far, the most important ingredient for your success will be
yourself. Focus on how your prior experiences will be applicable to your
new business. Prepare a résumé of yourself and one for each person who
will be involved with you in starting the business. This part of your
Business Plan will be read very carefully by those with whom you will be
having relationships, including lenders, investors and vendors.
• Your Business Profile: Define and describe your intended business and
exactly how you plan to go about it. Try to stay focused on the specialized
market you intend to serve.
• Economic Assessment: Provide a complete assessment of the economic
environment in which your business will become a part. Explain how your
business will be appropriate for the regulatory agencies and demographics
with which you will be dealing. If appropriate, provide demographic
studies and traffic flow data normally available from local planning
departments.
• Cash flow assessment: Include a one-year cash flow that will incorporate
your capital requirements .Include your assessment of what could go wrong
and how you would plan to handle problems.
• Include your marketing plan and expansion plans.

Step By Step Guide To Build A Hotel 14


Step By Step Guide To Build A Hotel

Business Plan
Hotel Name

Hotel Address

Owners Name

Company Name

Correspondence Address

Step By Step Guide To Build A Hotel 15


Step By Step Guide To Build A Hotel

Executive Summary

This is an overview of the business you wish to start and should be a summary of the
key points of your entire plan. It is advisable to write this section once you have
completed the business plan. The purpose of this summary is to explain the basics of
the business in a way that both informs and interests the reader.

Step By Step Guide To Build A Hotel 16


Step By Step Guide To Build A Hotel

Management

Management Team Mission

Vision Objectives

Nature of Business?

Step By Step Guide To Build A Hotel 17


Step By Step Guide To Build A Hotel

Competitor Analysis
Local Marketplace

Identify key competitors (Hotels/Resorts etc)

Competitors Famous for? Key Offer Core customers

Customer Analysis

Describe the current and future customers

Current Future

Step By Step Guide To Build A Hotel 18


Step By Step Guide To Build A Hotel

The Hotel and its Market

SWOT analysis

This section will help you review the current position of the business and help identify
opportunities

STRENGTHS of the business – these must be both protected and promoted

WEAKNESSES of the business – identify all business issues that need addressing

OPPORTUNITIES – highlight the areas of greatest opportunity to help reduce


weaknesses

THREATS – must be removed if possible in order that your vision for growth can be
achieved

The Offer

Step By Step Guide To Build A Hotel 19


Step By Step Guide To Build A Hotel

The Offer
What will ensure that customers return to this Hotel?

How will you differentiate from your competitors?

How do you plan to develop the business?

How will you manage to promote the hotel?

Step By Step Guide To Build A Hotel 20


Step By Step Guide To Build A Hotel

The Offer (continued)

Please outline here how you currently see the Hotel being run, but more importantly
how you intend to operate the Hotel in the future.

Current Proposed

Rooms

Food & Beverage

Entertainment

Conferences

Spa

Other

Step By Step Guide To Build A Hotel 21


Step By Step Guide To Build A Hotel

Sales & Marketing


Potential Customers
Are there people in the area not catered for? Would they move from other hotel for a
better offer?

Target Customers
Who are your target customers to help increase and maximize trade?

Products & Pricing


Please indicate below the current and proposed product range and prices

Category
Current Proposed
Pricing

Room

Food

Spa

Conferences

Weddings

Beverage

Other

Step By Step Guide To Build A Hotel 22


Step By Step Guide To Build A Hotel

12 Months Profit and Loss Account Forecast

Your projected profit & loss account will help you decide on your forecast turnover
and forecast expenditure. This will in turn determine the potential profitability of your
business plan and help you to decide whether you wish to proceed with your
application.

First Year Cash flow

The cash flow forecast analyses the movement of cash in and out of the business
over a 12 month period. Unlike the Profit and Loss forecast the cash flow includes
Tax and therefore Tax payments. The forecast will also enable you to demonstrate
seasonal trends that occur within the business

Step By Step Guide To Build A Hotel 23


Step By Step Guide To Build A Hotel

Overall Costs

This section helps you to outline the overall cost of starting the business and how the
business is to be funded.

Start up costs

Category Cost

Total

Where will the Capital for the Project come from?

Funded From Cost Source

Total

Step By Step Guide To Build A Hotel 24


Step By Step Guide To Build A Hotel

Notes

Step By Step Guide To Build A Hotel 25


Step By Step Guide To Build A Hotel

Hotel Feasibility Study

Do you need to convince an investor or a partner to invest in your project?

Do you have a very good idea or project that you're seeking to finance?

Do you need to submit details of a project to your board of directors, external


agencies or organizations and you're not sure of the best way of presenting it?

Do you really need to convince someone, to join you or support you in a project or
venture?

Do you have several alternative projects and/or:

1.You are undecided on which alternative to opt for and you need to make sure
you're making the right decision.

2. You need a sound way of weighting the various alternatives.

3. The choice between various alternatives is unclear or complicated.

Do you need to research and analyze the business opportunity, however big or
small?

“Then you need Feasibility Study”


Conducting a feasibility study for a new venture requires a thorough analysis of
market conditions. Market conditions in your area have a significant impact on the
profitability of your hotel or motel. The strength of the local lodging market
affects how many rooms you can sell and the rates that you can charge. It will help
you analyze your market so that you can gauge the potential of your operation and
make more informed operating and investment decisions.

A feasibility study is designed to provide an overview of the primary issues related


to a business idea. The purpose is to identify any “make or break” issues that would
prevent the business idea from being successful in the marketplace. In other
words, a feasibility study determines whether the business idea is viable. This
knowledge is crucial for any potential hospitality business.

Step By Step Guide To Build A Hotel 26


Step By Step Guide To Build A Hotel

A thorough feasibility study provides much of the information necessary for a


business plan. It is therefore appropriate to complete a feasibility study prior to
carrying out a business plan. For example, a good market analysis is necessary in
order to determine the hotel’s feasibility. This information can then provide the
basis for the market section of the business plan.

Objectives of Feasibility Study

1. Evaluate the market potential for the proposed hotel based on an analysis of the
market support for a hotel facility on the subject site.

2. Comment on the appropriate numbers types, guest room sizes and other
amenities which would best serve the needs of the market.

3. Project levels of market penetration, occupancy, and average room rate for the
proposed hotel for the first five years of operations.

4. Prepare detailed projections of Cash Flow from operations before fixed charges
for the hotel for the first five years of operations.

5. Provide a written report containing the conclusions of the Feasibility Study and
present Financial Projections for the proposed hotel.

Feasibility Study will help you answer questions such as:

What trends are occurring in the lodging industry?

Are local economic and visitation trends favorable?

Who are my competitors and how successful are they?

What are the potential lodging market segments in the area?

What occupancy and average room rate could I achieve?

Step By Step Guide To Build A Hotel 27


Step By Step Guide To Build A Hotel

Feasibility Study for Hotel Financing

Financing for any startup hospitality business is hard for obvious reasons. A lender
is gambling. It is betting that the owner of the startup business is going to be able
to meet projections and pay back the loan.

A startup Hotel offers an additional challenge – most new owners lack


management experience in the lodging or some comparable industry. When a
lender finances a startup, what it is really betting on is the management – the
owner. Normally, a lender would never provide a startup loan for someone
without significant experience in the business he or she is starting.

If you are seeking to finance a new hotel you would be required by your lender to
do a feasibility study. Doing a feasibility study for your Hotel will give you a
chance to prove your case that there is a demand for your rooms at a price that
will generate a profit.

A lender will almost always require a large cash injection – usually a minimum of
30% of the total project cost. You will also need a certain amount of working
capital to carry you through the startup period.

Steps in Feasibility Study

Feasibility Study includes a variety of work steps which enables to evaluate


historic trends and project the future competitive supply of and demand for hotel
accommodation in the area. The scope of the work includes, but is not necessarily
limited to the following:

Step 1. An inspection of the site and surrounding area to determine their


suitability for the proposed hotel, taking into consideration such factors as
accessibility, visibility, and proximity to demand generators.

Site and Area Evaluation:

• The Site
• Motorways & trunk roads
• Country map

Step By Step Guide To Build A Hotel 28


Step By Step Guide To Build A Hotel

• County Map
• City/town Map
• Site pictures
• Traffic volume
• Signage, Accessibility, and Visibility
• Proximity to Demand Generators
• Utilities

Step 2. An inspection and analysis of the hotels in market area that would provide
the primary competition to the proposed hotel. Census of the competitive facilities
included both existing hotels as well as those under construction, planned, or
rumored.

Supply and Demand Analysis:

• Competitive Market Set


• Pictures of Competitive Hotels
• Research area occupancy
• Research area Average Daily Rate
• Research area trend
• Full service, limited service or extended stay survey
• Commercial Guest Demand
• Leisure Demand

Step 3. An analysis and economic evaluation of the market area based on


interviews with local area businesses and local government officials, local
government websites, compilation of pertinent market data, and a review of those
economic indicators which would be most relevant to the success of the proposed
project.

Market Area Analysis:

• Community Profile
• Business Climate
• Area Businesses
• Office/Industrial space occupied
• Transportation
• Education
• Health Care
• Quality of Life
• Neighboring Markets
• Calendar of Events
• Attractions
• Recreation

Step By Step Guide To Build A Hotel 29


Step By Step Guide To Build A Hotel

Step 4. Determine the current overall market demand and rooms in the subject
area and the share of market demand that is generated by tourists, commercial
travelers, and group meeting delegates.

Projected Usage of Proposed Hotel:

• Projected Market Penetration and Occupancy


• Competitive Set Average Room Rate
• Projected Average Room Rate

Step 5. A projection of growth rates for the various market segments based on the
factors that should impact the future demand for hotel rooms.

Step 6. An evaluation of the projected hotel supply and demand relationship in the
market area to reach conclusions regarding the market support for the proposed
hotel.

Step 7. Comment on the proposed facilities in terms of number, mix, and type of
guest rooms, and leisure amenities.

Proposed Facilities and Services:

• General Concept
• Room Mix
• Food and Beverage Facilities
• Meeting Facilities

Step 8. Comment on the proposed facilities in terms of style and size in relation to
proposed standard of hotel

Step 9. Projections of occupancy and average room rate for the proposed hotel,
including projected market mix of guests.

Step 10. Cash flow projections for operations before fixed charges for the first five
years of operations.

Financial Projections Year One to Five:

• Minor Revenue Departments


• Payroll
• Rooms Department
• Administrative and General
• Food & Beverage

Step By Step Guide To Build A Hotel 30


Step By Step Guide To Build A Hotel

• Sales and Marketing


• Franchise Fees, if required
• Utilities
• Repairs and Maintenance

Step 11. Add in conclusions, which would comment on the following:

Market Area Analysis


Site and Area Evaluation
Supply and Demand Analysis
Proposed Facilities and Services
Projected Utilization of the Proposed Hotel
Financial Analysis
Franchise Information, if required.

Below is a Sample Feasibility Report:

Step By Step Guide To Build A Hotel 31


Step By Step Guide To Build A Hotel

Step By Step Guide To Build A Hotel 32


Step By Step Guide To Build A Hotel

Hotel Financial Projections

Financial projections for a proposed new hotel will normally comprise estimated
statements of profit and loss and of cash flow, based on which an investment
analysis is prepared.

It covers the number of rooms sold by the hotel, the number of covers served in
the restaurant, the utilization of the hotel’s business centre, the number of
members in the leisure club, and so on. For a hotel, the selling of bedrooms is
normally where the majority of the profit is generated and so the appraisal will
start with an analysis of how many room nights can be sold.

This is a fundamental point relating to the projections contained within a


feasibility study – they are based on the assumptions and information available to
the consultant at the time of their preparation. Unforeseen events can and will
affect the eventual outcome, and this is where the risk inherent in any capital
investment lies.

Below is a format for Hotel Financial Projections:

Step By Step Guide To Build A Hotel 33


Step By Step Guide To Build A Hotel

Hotel Financial Projections ( 5 Years)


1 2 3 4 5
Revenues
Number of rooms
number clients/room
occupancy rate per year
Room
daily room rate per client( fixed)
daily room rate per client if # from fixed per year
daily average room revenue per year
total room revenues per year
F&B
F&B/client/day
total F&B per year
Telephone
Telephone/client/day
total telephone per year
Laundry
Laundry/client/day
total laundry per year
Recreation
recreation/client/day
total Recreation per year
Other income
other income/client/day
total other income per year
Total revenues per year
inflation on revenues per year

Step By Step Guide To Build A Hotel 34


Step By Step Guide To Build A Hotel

cumulated inflation per year


Total revenues with inflation per year

Costs
Departmental expenses
Room (staff expenses)
minimum staff/room
staff/client
total staff number per year
average salary/year
total staff salaries/year per year
F&B
F&B/client/day
Total F&B per year
Telephone
Telephone/client/day
total telephone per year
Laundry
cost/client
total cost per year
Recreation
recreation/client/day
total Recreation per year
Other income
other income/client/day
total other income per year
Total departmental expenses per year

Operating expenses

Step By Step Guide To Build A Hotel 35


Step By Step Guide To Build A Hotel

Administrative & general


minimum staff/room
average salary/year
total staff number per year
total/year
Management fees
% turn over
total management fees per year inflation on cost not applicable
Property operation &maintenance
%
investment/year maintained
% investment/year
total maintenance/year per year
Marketing
% turn over
total marketing expenses per year inflation on cost not applicable
power
min power/room/day (kW)
power/client/day (kW)
total power/year(kW) per year
unit cost(LE/kW)
total cost of power per year
water
consumables min water/room/day(M3)
water/client/day(M3)
total water/year(M3) per year
unit cost(LE/M3)
total cost of water per year
waste
cost of waste/room/day

Step By Step Guide To Build A Hotel 36


Step By Step Guide To Build A Hotel

total cost of waste per year


miscellaneous= % turn over inflation on cost not applicable
Total operating expenses per year

Fixed expenses (out of amortization/depreciation)


Insurance
%investment insured
%
total insurance/year per year
Incentive fees
% turn over
total management fees per year inflation on cost not applicable
Total fixed expenses(out of amortization/depreciation)

total departmental+operating+fixed costs per year


inflation on costs applicable per year
cumulated inflation per year
Total departmental+operating+fixed costs with inflation per year

Depreciation/Amortization
structure & civil works % /year
per year
electromechanical % / year
per year
FF&E %/year
per year
preopening %/year
per year
total depreciation/amortization/year per year

Step By Step Guide To Build A Hotel 37


Step By Step Guide To Build A Hotel

Debt service
1 loan1 % debt
total loan
grace period (year) <3 years
loan duration (year) <10 years
loan rate
loan yearly installment per year
2 loan2 % debt
total loan
grace period (year) <3 years
loan duration (year) <10 years
loan rate
loan yearly installment per year
3 loan3 % debt
total loan
grace period (year) <3 years
loan duration (year) <10 years
loan rate
loan yearly installment per year
total loan yearly installments per year

Total costs & expenses&debt service out of amortization/depreciation per year


Total costs & expenses&debt service (includ. Amortization/depreciation) per year

Cash before taxes


Net profit before taxes

Taxes
% on profit
Total taxes total per year

Step By Step Guide To Build A Hotel 38


Step By Step Guide To Build A Hotel

Net profit after taxes

PROFITABILITY -3 -2 -1 0 1
Dividends
Dividend policy
% profit served per year
profit served per year
% reserve per year
reserve per year
reserve released per year
cumulated reserve per year
dividend/year per year
-3 -2 -1 0 1
Final value after 10 years
depreciation
value after depreciation ("book value")
rate of capitalization of year 10
capitalized dividends of year 10
estimation of reinvestments(refurbishing) at year 10
capital due to reimburse after 10 years
final value
-3 -2 -1 0 1
Profitability
total equity(including loan reimbursements before transfer to
Owner)
Internal rate of return on equity
total invest (including loan reimbursements before transfer to
Owner)
Internal rate of return on project

Step By Step Guide To Build A Hotel 39


Step By Step Guide To Build A Hotel

SIMPLIFIED CALCULATION
Internal rate of return on equity (simplified)
Internal rate of return on project (simplified)

Step By Step Guide To Build A Hotel 40


Site Selection and Land Acquisition

The following are some of the many things to be kept in mind, while selecting a
site before acquiring land for Hotel Construction:

Zoning Restrictions: City zoning ordinances must allow your specific type of
operation to do business at this location and must also permit adequate parking on
or near the property.

Elevation: Elevation affects gravity, and gravity affects drainage away from the
building. A good site is environmentally friendly. It will minimize your sewage
backup, plumbing, and grease interceptor problems. It does not require
extraordinary modifications to get good water pressure throughout the building.
Also, find out if the site is located in the floodplain of an adjacent river or creek,
which may make insurance difficult or expensive to obtain.

Utility Requirements: Amazingly, some people put down earnest money on a


piece of property, only to find out that gas lines or sewer lines are not available
there or are inadequate for commercial use. Your real estate agent or local utility
companies can check this for you. Electrical power requirements are complex for
Hotels and may mean you need more power than now exists in the space.

Location: There are some immediate concerns when locating in a downtown area
as opposed to a roomier suburb. Specific environmental restrictions may have been
enacted for good reasons, but they may also make it impossible for you to do
business in certain locations without extensive capital outlay and/or building
modifications. Precipitators, pricey equipment to clean exhaust fumes before
expelling them into the atmosphere, may be required, and exhaust vents can’t
simply be punched through a wall—as mentioned, they may have to snake up
several floors to the roof of the building. Sewer and grease trap requirements are
often more complicated. Licensing can be more expensive, and regulations stricter
overall, in an urban area.

Logistics also figure prominently in busy or congested locations. Where will trucks
park to make their deliveries? How difficult will trash removal be?

Traffic: The roadway in front of your proposed site provides an important clue to
its future success. Do cars whip by so quickly that the motorists never see your
place? Drivers traveling at 35 miles an hour or less will be best able to read your
signage and to turn spontaneously into your parking lot without causing a traffic
mishap.
Step By Step Guide To Build A Hotel

Is the nearest intersection so busy that most people would think twice before
trying to cross the street to patronize your business? Does the outside traffic
hinder or help you? Stand outside the location and watch both automotive and
foot traffic in the area. Ask yourself if anyone, coming from any direction, would
be frustrated by the sheer hassle of getting to your site.

Visibility: If people cannot find you because they cannot see you, you’re almost
always in trouble. Exceptions exist, but they are rare. If possible, your building
should be visible from both sides of the street, as far away as 400 feet. This also
means checking local signage laws. Cities, counties, and even your neighborhood
merchants’ group may have restrictions on the types, sizes, height, and even
brightness of outdoor signs.

Parking: In various locations, local ordinances specify the ratio of parking spaces
to the size of the building. Closely examine parking availability during peak hours.
Will your guests pay the added cost for convenience or security? Or will you offer
complimentary parking and foot the bill yourself? Finally, where will your
employees park?

Accessibility: Make it easy for guests to enter and leave your parking lot and your
building. Check the locations of traffic lights or stop signs, which may affect foot
traffic. One-way streets or speed limits of more than 40 miles an hour may make
your place a little tougher for cars to get to.

Your city planning and zoning department will be able to provide any recent
surveys of vehicle or foot traffic as well as details of future plans for the street. A
prolonged construction project that restricts access could be deadly to business.
Accessibility also includes compliance with Disabilities Act, Businesses are
required by law to provide reasonable amenities—such as handicapped parking
spaces, wheelchair ramps, and accessible restrooms—that enable physically
challenged persons to be customers too.

Step By Step Guide To Build A Hotel 42


Step By Step Guide To Build A Hotel

Buying or Leasing Land

Once you have identified a location where your concept will fit, where members
of your target market will visit on a regular basis, your work has just begun. Will
you lease the site or purchase it?

You may consider hiring a commercial real estate broker to assist in your property
Search, but it is smart to do concept and target customer research before you do so.

Things to keep in mind before buying land:

Check the title before buying

When buying a property it is important to check for any restrictions that apply to
the property that might prevent you from enjoying the use of the land, such as
covenants and easements. The Certificate of Title is the official record of who
owns or has an interest in a property and will inform you of such restrictions.
While we recommend that you consult a lawyer before putting in an offer to buy a
property, there are some simple ways that you can easily check the Title that will
help you determine if there are any issues that you should be aware of before you
even commit to making an offer.

Checking information contained on the Title

The Certificate of Title includes the following key information:

• Legal details – including estate type, title, and legal description


• Current legal owners
• Interests – including ownership transfers, mortgages, and easements such as
right-of-ways
• Diagram of the plan of the property (depending on the Title type you get)

This information will help you identify potential issues that you should be aware
of including if there are any covenants or easements, verifying the legal
boundaries of the property, and checking that the people selling the property are
the official owners.

If there are any interests in the property other than transfer or mortgages then you
should pay very close attention to these and they should be thoroughly checked.
Such interests include covenants and easements that may restrict what you can do
on the land. Covenants are often put on properties, especially in new subdivisions
to ensure that any structures built on the land are in line with the quality of the

Step By Step Guide To Build A Hotel 43


Step By Step Guide To Build A Hotel

properties in the area, they may also be used to restrict certain activities. An
easement such as a right of way and drainage rights should also be carefully
checked to understand the terms of conditions of the easement and any
responsibilities the owner has to maintain them.

To check the property boundaries you will need to get a copy of a Title that
contains a plan of the land. This allows you to get a sense of where the boundaries
should roughly be running and match those with the physical boundaries of the
property. If they look like they match then there aren’t likely to be any issues, but
if you have any doubts then it might pay to consult your lawyer and/or get a
surveyor to inspect the property.

Verifying the ownership is very important when it comes to putting in an offer.


The people named as the vendors should match those on the Title.

You should also be aware of the type of ownership of the property.

• Freehold is the most common ownership type; this means you own the
land and the buildings on the property with few restrictions.
• Cross-lease has also become more common and is where there is more than
one property on a title. In this case the owner of each property shares
ownership of the land and each leases their own property. This often
means that you need to get permission from the other owners on the Title
to conduct a range of activities, including building new structures.
• Unit title is generally used for apartments. This gives freehold title to your
unit and any garaging. This form of title often has common legal areas and
shares responsibility for any common property that generally includes on-
going obligations to a body corporate.
• Leasehold is less common and is where someone else owns the land that
you then lease back and generally pay rent for. With a leasehold
ownership there are often restrictions on what you can do on the land.

Step By Step Guide To Build A Hotel 44


Step By Step Guide To Build A Hotel

Sample Land Lease Agreement

• THIS AGREEMENT is entered into on the ______________ day of


____________________by and between ______________, a limited
company registered under the laws of ________________located at
____________represented by Mr. ______________, its authorized Directors
(hereinafter referred to as "the Leaser") on the one part, and
_______________________________________________________________
______(hereinafter referred to as "the Lessee,") on the other part.

• WHEREAS the Leaser is the owner of an approximate ________parcel of


land situated at_____________province which is divided into smaller
parcels of land;

• WHEREAS one such parcel shall be leased to the Lessee under the terms
and conditions of this Agreement.

• WHEREAS this parcel of land has an approximate area of _____ meters


under an associated title document, no.___, vol.____ , page ____, land
number ____ located at _______________, which shall be hereinafter
referred to as "the said land";

• WHEREAS the Leaser’s and the Lessee's objectives are to create a beautiful
and peaceful environment for rest, enjoyment, and creative work; to make
it possible for residents and guests to enjoy and care for the natural and the
built environment within an atmosphere of mutual respect and common
responsibility; and to ensure that the ecology of the area and its
surroundings is preserved and enhanced to the greatest extent possible.

NOW THEREFORE, the parties hereto agree as follows:

Step By Step Guide To Build A Hotel 45


Step By Step Guide To Build A Hotel

The Leaser shall lease the said land to the Lessee and the Lessee shall accept the
lease of the said land from the Leaser. The location of the said land is shown on
the site plan attached to this Agreement which shall be deemed a part of this
Agreement, as plot no. ___, measuring _____ square meters in total.

In consideration of the lease of the said land, the Lessee agrees to pay the total
amount of ___________ to the Leaser in accordance with the following schedule
upon execution of this Agreement ____________ within _____ days of the
execution of this Agreement the remainder of _________

The duration of the lease of the said land under this Agreement shall be for ______
years from the date of this Agreement which is renewable for an additional period
of _____ years without additional payment to the Leaser except for expenses as
provided in Clause ___hereof. If at any time the Government extends the
maximum allowable term of a land lease, the Leaser agrees to re-register the lease
for the maximum allowable number of years, with the costs of registration borne
by the Lessee.

The lease of the said land under this Agreement shall be officially submitted for
registration to the Land Office of _________ within 30 working days after the
Leaser has received from the Lessee the amount specified in Clause __ in full. The
Leaser shall each pay the expenses incurred in the registration of the said lease. In
the event the Lessee wishes to renew the said lease, the Lessee is required to notify
the Leaser in writing within 90 days before the expiration date of this Agreement.
This request for registration of the renewal of said lease shall be submitted to the
Land Office or appropriate authority within 30 days of the expiration of this
Agreement. The lessee shall be informed by the Leaser of the said renewal.

The Lessee shall only use the said land for Hotel Accommodation purposes and not
for any other commercial, industrial or any other purposes whatsoever.

All construction of fixtures or improvements made or caused to be made by the


Lessee on the said land shall at all times be the property of the Lessee and shall be
within the building lines specified on the attached site plan so as not the block the
views of others. The nature of the area where the said land is situated shall be
maintained by the Lessee. All construction on the land as aforesaid or any
alteration or demolition thereof shall be in conformity with the construction
regulations issued from time to time by the Leaser or directly and expressly
approved by the Leaser. In addition, in constructing fixtures or improvements
onto the said land, the Lessee is required to comply with Country laws and
regulations in all respects especially the laws and regulations concerning building
and construction.

Step By Step Guide To Build A Hotel 46


Step By Step Guide To Build A Hotel

The Leaser reserves the right to cease providing regular services to the Lessee's
plot if the Lessee fails to abide by the conditions of this agreement.

This Agreement is assignable provided that this Agreement is assigned as a whole


and on the same terms and conditions as stipulated herein. The Assignee shall
assume the rights and responsibilities of the Lessee under this Agreement existing
at the time of assigning of this Agreement through its validity period. All expenses
in the assignment of the lease will be borne by the Lessee.

The Lessee may rent his fixtures or improvements to a third party only by the
prior consent of the Leaser in writing and at the terms and conditions agreed upon
by the Leaser and the Lessee.

In the case of joint lessees, if one of the lessees dies the survivor will have all rights
under this lease.

Should the Government at any time extend the maximum permissible lease period,
the Leaser agrees to extend this lease to the maximum allowed. All legal and
official fees will be borne by the Lessee.

By affixing his/her signature hereto, the Lessee attests that he fully understands
and agrees to abide by all the rules, conditions, and limitations stated above.

IN WITNESS WHEREOF, the Leaser and the Lessee have executed this
Agreement as of the day and year mentioned above.

Witness: The Lessee:

Step By Step Guide To Build A Hotel 47


Step By Step Guide To Build A Hotel

Hotel Licenses Permits and Approvals

Various Licenses, Permits and Approvals are required before, during and after the
Hotel Construction Process. Besides this there are many Licenses and Permits
required once the Hotel is operational.

Below listed are some of the many permits required for Hotel Development,
Construction and Operations.

It is important to note that not all of them listed below are required in every
situation. This will also vary from one Country to other.

The below list is not exhaustive and there might be some special permits which
are required in some Countries, other than the ones mentioned below.

Needless to say out of all the permits, Land use Permit, Building Permit, Health
License, Business License and Fire Safety License are some of the most important
ones.

Step By Step Guide To Build A Hotel 48


Step By Step Guide To Build A Hotel

Hotel Approval Process

The Department of Tourism or the Tourism Board of a Country usually approves


hotels at project stage based on documentation, which enables the hotels to get certain
benefits from the govt. as announced from time to time. Project approvals are usually
valid for 5 years. This again might be different from one Country to other.

The application form for the approval usually requires the following details:

o Proposed name of the hotel


o Name of the promoters with a note on their business antecedents
o Complete postal address of the promoters/tel./fax/email
o Status of the owners/promoters
ƒ If Public / Private limited company with copies of
Memorandum and Articles of Association.
ƒ If Partnership, a copy of partnership deed and certificate of
registration.
ƒ If proprietary concern, name and address of proprietor /
certificate of registration.
o Location of hotel site with postal address
o Details of the site
ƒ Area (in sq.meters)
ƒ Title – owned / leased with copies of sale / lease deed.
ƒ Copy of Land Use Permit from local authorities
ƒ Distances from Railway station, airport, main shopping centers
o Details of the project
ƒ Copy of feasibility report.
ƒ Star category planned.
ƒ Number of rooms and area for each type of room (in sq. ft.)
ƒ Number of attached baths and areas (in sq. ft.)

Step By Step Guide To Build A Hotel 49


Step By Step Guide To Build A Hotel

ƒ Details of public areas – Lobby / lounge, restaurants, bars,


shopping, banquet / conference halls, health club, swimming
pool, parking facilities.
ƒ Facilities for the physically challenged persons.
ƒ Eco – friendly practices and any other additional facilities
ƒ Date by which project is expected to be completed and
operational.
o Blue prints / sketch plans signed by owners and architect showing
ƒ Site plan
ƒ Front and side elevations
ƒ Floor plans for all floors
ƒ Details of guest room and bathroom with dimensions in sq. ft.
ƒ Details of Fire Fighting Measures / Hydrants etc.
ƒ Details of measures for energy conservation and water
harvesting.
o Air – conditioning details for guest rooms, public areas.
o Local approvals by
ƒ Municipal /Council authorities
ƒ Concerned Police Authorities
ƒ Any other local authority as may be required.
o Proposed capital structure
ƒ Total project cost
• Equity component with details of paid up capital
• Debt – with current and proposed sources of funding
o Letter of acceptance of regulatory conditions.
o Application Fee

The hotel must immediately inform the Department of the date from which the
hotel becomes operational and apply for classification within 3 months of that
date.

Step By Step Guide To Build A Hotel 50


Step By Step Guide To Build A Hotel

The fees payable for the project approval is different for every category:

Star Category Fees


5 – Star
4 – Star
3 – Star
2 – Star
1 – Star

Step By Step Guide To Build A Hotel 51


Step By Step Guide To Build A Hotel

Licenses needed to operate a hotel

Temporary Certificate of Fitness


Garbage License
Construction License
Fire Extinguisher License
Business License
Lift Operation License
Hotel Premise License
Firearm License
Generator License
Permit To Lay Cables For Electricity
Disco License
Permit To Lay Cables For Telephone
Signboard License
Permit For The Supply Of Electricity
Permit For The Supply And Operation Of Telephones
Permit To Lay Pipes For The Supply Of Water
Certificate Of Fitness
Permit To Lay Pipes For The Supply Of Gas
Swimming Pool (water testing)
Permit For The Supply Of Water
Permit For The Supply And Storage Of Gas / LPG
Permit For The Supply And Storage Of Diesel
Restaurant License (one for each outlet)
Liquor Sales License
Liquor Sales (extension hours) License
Manufacturing License (Ice-cream, Bread, Meat, etc - one or each item)
Entertainment License (one for each place of entertainment)
Entertainment (extension hours) License
Boiler License
Ballroom License
Laundry License
Recreation License (e.g. Snooker, etc.)
Health Centre License
Stage License
TV & Radio License (one for each set)
Liquor Measure License
Dance Floor License
Money Changer License

Step By Step Guide To Build A Hotel 52


Step By Step Guide To Build A Hotel

Entertainers Permit (one for each function)


Walkie-Talkie Operation License
Sales Of Wild Life Meat License
Neon Light License
Transport License
Entertainers' Permit
Boat License
Car Park Operation License
Water Sports License (Individual Licenses)
Pager License
Service Tax License
License To Operate Computer / Video Games

Step By Step Guide To Build A Hotel 53


Step By Step Guide To Build A Hotel

STAGES / APPROVALS / AGENCIES / TIMELINE FOR HOTEL

TIMELINE
NO. APPROVAL AGENCY
[DAY(S)]

1 Approval of Company’s Name

2 Certification for Incorporation of Companies

3 Premise Licence

4 Advertisement Licence

5 Registration for Contractor

6 Public House Licence K1 (Liquor)

7 Employer’s Registration

8 Member’s Registration

9 Money Changer Licence

10 Employee’s Registration

Step By Step Guide To Build A Hotel 54


Step By Step Guide To Build A Hotel

TIMELINE
NO. APPROVAL AGENCY
[DAY(S)]

11 Registration for Corporate Payer

12 Approval to Employ Expatriate Staff

13 Land Conversion / Sub-division Approval

14 Application for Surrender & Re-alienation

15 Planning Approval

16 Building Approval

17 Supply of Electricity to Project

18 Approval of Detailed Plan

19 Approval of Telecommunication Connection

20 Approval of Telecommunication Connection Plan

21 Sewerage Works Planning Approval

22 Sewerage Works Design Approval

Step By Step Guide To Build A Hotel 55


Step By Step Guide To Build A Hotel

TIMELINE
NO. APPROVAL AGENCY
[DAY(S)]

23 Written Approval for Fuel Burning Equipment

24 Approval Letter for Installation (Lift)

Approval Letter for Design and Installation


25
(Steam Boiler)

26 Temporary Electricity Supply to Site

27 Temporary Water Supply to Site

37 Certificate of Fitness (Lift)

38 Certificate of Fitness (Steam Boiler)

39 Approval of Water Supply to Hotel

40 Approval of Electricity Supply to Hotel

Step By Step Guide To Build A Hotel 56


Step By Step Guide To Build A Hotel

TIMELINE
NO. APPROVAL AGENCY
[DAY(S)]

41 Composite Licence for Hotel (15 activities)

Registration for Certificate for Tourist Accommodation


42
Premise

43 Registration for Certificate for Electric Installation

Step By Step Guide To Build A Hotel 57


Step By Step Guide To Build A Hotel

TIMELINE
NO. APPROVAL AGENCY
[DAY(S)]

44 Authorisation Letter to Purchase Diesel

45 Visit Pass (Professional)

46 Temporary Public House Licence (Extension of Hours)

47 External Advertising Licence / Permit

48 Temporary Entertainment Permit

49 Publication Permit

51 Apparatus Assignment Approval

Step By Step Guide To Build A Hotel 58


Step By Step Guide To Build A Hotel

Hotel Project Team

Many people are involved in the successful completion of a Hotel Project.

Other than the Hotel Owner, Developer, Legal Expert, Structural Engineer,
Various Consultants (Food Service, Laundry, Kitchen, Financial, Feasibility Study,
FF&E etc) and the Hotel Franchising Company, the following are some of the
many important people involved in the successful completion of a Project.

Architect

Duties and Responsibilities:

Architects perform the following tasks:

• Discuss requirements of clients or builders (to design a new structure or


modify an existing one) and prepare a brief.
• Prepare sketch drawings, production drawings and detailed drawings by
hand or using Computer-Aided Design (CAD) equipment.
• Combine structural, mechanical and artistic elements into the building
design, such as decks and atriums, lifts and air-conditioning systems, and
decorative finishes.
• Discuss designs and cost estimates with clients and others involved in the
project, including engineers, quantity surveyors, landscape architects and
town planners.
• Obtain necessary approvals from authorities.
• Prepare specifications and contract documents specifying building
materials, construction equipment and, in some cases, the interior
furnishings, for builders, trades people and legal advisers.
• Observe, inspect and monitor building work, to make sure that it is
progressing according to the contract and specifications.
• Evaluate projects once they are completed and occupied.

Step By Step Guide To Build A Hotel 59


Step By Step Guide To Build A Hotel

Interior Designer

Duties and Responsibilities:

Interior designers perform the following tasks:

• Talk to clients and architects to work out client needs and intentions, and
to make sure that safety requirements are met.
• Develop designs that are appropriate, functional and aesthetically pleasing.
• Prepare working drawings and specifications for interior construction,
materials, finishes, space planning, lighting, furnishings and equipment.
• Estimate costs of materials, labor and time, and give estimates to clients for
approval.
• Organize supplies and prepare detailed instructions for trades people.
• Inspect the work of suppliers and trades people, and maintain time, cost
and quality controls.
• Work with specialists in technical areas concerned with fire, hydraulics,
and mechanical, electrical and structural design, making sure that industry
regulations are met.
• Prepare and administer tenders and contract documents.

Quantity Surveyor
Duties and Responsibilities

Quantity surveyors perform the following tasks:

• Talk to architects, engineers, builders, contractors, suppliers and project


owners.
• Study architectural and engineering drawings and specifications.
• Prepare a 'Bill of Quantities', which lists the individual components
required to construct the project.
• Check on changes of design to assess the effects on cost.
• Assess and recommend payment to contractors during construction.
• Prepare monthly cash-flow forecasts for clients and tax depreciation
schedules.
• Undertake feasibility studies to assist in decisions about the worth of a
project proceeding.

Step By Step Guide To Build A Hotel 60


Step By Step Guide To Build A Hotel

Building Contractor

Duties and Responsibilities

Building contractors perform the following tasks:

• Examine and interpret clients' plans or arrange the drawing of plans to


meet building regulations.
• Submit tenders (offers to do jobs at a stated price), quotes or prices for the
project to clients.
• Arrange submission of plans to local authorities for approval and arrange
inspections of building work.
• Organize subcontractors to carry out all stages of building and negotiate
rates of pay.
• Calculate quantities of materials required for building projects and order
these from building suppliers or advertise for tenders.
• Arrange delivery times of materials to coincide with various stages of the
building process.
• Supervise the work of subcontractors to make sure buildings are of an
acceptable standard and are proceeding according to schedule.
• Coordinate the activities of office staff involved in the preparation and
payment of accounts.
• Talk to lawyers and financial institutions on matters relating to loans and
contracts for building projects.

Landscape Architect

Duties and Responsibilities:

Landscape architects perform the following tasks:

• Study and discuss designs, costs and construction of projects with clients.
• Talk to architects, engineers and other professionals, and gather
information on factors such as historical and natural conservation
requirements, soil structure, drainage, rock features, existing and proposed
buildings, and sun and shade movements.
• Draw up site plans outlining the development of the site, discuss with
clients and seek approval.

Step By Step Guide To Build A Hotel 61


Step By Step Guide To Build A Hotel

• prepare specifications, arrange cost estimates, list building materials


required and detail working drawings of the site, showing features such as
location of buildings, roads and walkways; land contours and drainage
systems; soil conservation measures; and the vegetation to be planted or
retained.
• Undertake heritage studies and plans of management for open space areas.
• Use computer and video-simulation packages to develop broad scale
landscape plans.
• Supervise site work.
• Advice on landscape problems concerned with environmental planning.

Project Manager

Duties and Responsibilities:

Project manager performs the following tasks:

• Interpret plans and estimate costs and quantities of materials needed.


• Plan construction methods and procedures.
• Coordinate the supply of labor and materials.
• Supervise construction sites and direct site managers and subcontractors to
make sure standards of building performance, quality, cost schedules and
safety are maintained.
• Study building contract documents and negotiate with building owners and
subcontractors.
• Control preparation of cost estimates and the documentation for contract
bids.
• Control payment to subcontractors by valuation of completed works.
• Make sure that building regulations, standards and by-laws are enforced in
building operations.
• Consult with architects, engineers and other technical workers to make
sure that design intentions are met.

Step By Step Guide To Build A Hotel 62


Step By Step Guide To Build A Hotel

Raising Finance

There are various sources and methods of raising finance for Hotel Development
and Construction at various phases of Development, Construction and Operations
of a hotel.

Various factors influence as to the amount of financing required for the project.
Some of them are:

1. Land Cost
2. Construction Cost
3. Design and Development Cost
4. Cost of Furniture Fixtures and Equipment
5. Pre Opening Budget and Operational Budget for the first 6 Months of
Opening.

By far banks are the most-sought after source for developers for raising finance.

The types of loan, the amounts offered, interest rates, arrangement fees and the
terms for repayment vary widely. All these should be considered before finalizing
a particular loan.

Banks are usually committed to about 60 percent of the cost, only if Equity is
significant, to the tune of 40 percent of commitment by Investors/Developers.

To pursue these, the developer prepares an offering solicitation document that


meets current securities and exchange law.

The nature of this document depends on the type of business entity that was
formed. For limited partnerships or limited liability companies, a private
placement offering circular and project description is prepared.

The developer now contacts money sources that have capital available to invest.

These can include:

Individual investors
Private asset managers
Opportunity fund managers
Venture capital fund managers

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Step By Step Guide To Build A Hotel

These potential investment sources are offered the opportunity to invest in the
hotel. Based on their study and evaluation of the reports, documents, and studies
detailed above, they decide whether or not to offer funding to the developer.

Listed below are considerations that lenders look for before financing hotel
projects:

1. What reasons are there for this hotel to exist? What are the demand
generators for this hotel? What is the demand segmentation for this hotel
(i.e. business, leisure, group, etc.)? Is this a drive to or destination market?
Is this a tourist area or a business area? If this is a business hotel, where is
the convention center?

2. Projected Summary of ADR, Occupancy and RevPAR.

3. Monthly and annual reports (Owner’s Reports) from the management


company to the borrower, detailing the performance of the hotel will be
required, if available.

4. The subject property usually must have a franchise agreement with a


reputed hotel chain.

5. Who are the sponsors? Given the business nature of hotel loans, the
borrower principals and their credit history and management experience
will undergo careful consideration. Also, is the borrower cashing out on
this deal or will it have cash equity remaining?

6. What competition is already in the submarket?

7. Is there any new or proposed competition in the submarket? Additionally,


what are the replacement costs for this type of property? What barriers to
entry are there in the market for new competition?

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Step By Step Guide To Build A Hotel

Sample of Information required by a lender for lending

Hotel Name: __________________________________________________

Address

Telephone
Fax
Email

Owner Name

Address

Telephone
Fax
Email

Room Details

Suites

Kings

Queens

Twins

Total Rooms

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Step By Step Guide To Build A Hotel

Building Summary

Proposed date of Opening


Corridor (Exterior or Interior)
Construction Material
Foundation Type
Elevators (how many)
Restaurant (sq/ft)
Meeting Rooms (sq/ft)/ft)
Meeting Room Capacity
Retail Space (sq/ft)
Bar / Lounge (sq/ft)
Fitness Center (sq/ft)
Outdoor Pool (sq/ft)

Indoor Pool (sq/ft)


Spa (sq/ft)
Steam Room (sq/ft)

Roof (type)
Ground Floor (sq/ft)
Mezzanine
2nd Floor (sq/ft)
3rd Floor (sq/ft)
4th Floor (sq/ft)
5th Floor (sq/ft)

Additional Details/Comments

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Step By Step Guide To Build A Hotel

Site Summary

Land (sq/ft)
Building (sq/ft)
Parking (sq/ft)
Impervious (sq/ft)
Landscaping (sq/ft)

Financial Projections (Attachment Income / Expense Reports)

Year Amount

Additional Documents Needed

Copy of Property Deed


Copy of Real Estate Tax Bill
Copy of Property Survey
Copy of Title Insurance Policy
Complete Inventory of F&E
Mortgage Balance
Lender Name / Address / Tel / Fax / Email

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Step By Step Guide To Build A Hotel

Loan Checklist

This checklist will assist you through the process of gathering the necessary
information to expedite your loan request.

Loan Request Form


Management Profile: Complete for all principals (20% or greater ownership) or
any general manager (regardless of ownership percentage).
Personal Financial Statement(s) Complete for all principals (20% or greater
ownership).
Business History
Business Financial Statements and Tax Returns. Income statements, balance
sheets, accounts payable and receivables (if applicable), and tax returns for the
prior three fiscal year-ends.
Personal Tax Returns. Complete tax returns and all attached schedules for the past
three (3) years from each individual with 20% or greater ownership in the
applicant business.
Copies of Bank Statements: personal and/or business bank statements that
evidence sufficient cash resources to meet (at a minimum) your required down
payment.
Filed Articles of Incorporation & By-Laws, Business License
Projections (2 year minimum). Projections are required for all start-up and change
of ownership situations and must be month-by-month for the first 12 months and
annual thereafter.
Assumptions to Projections. Provide detailed explanation of how the revenue and
expense figures were derived along with all supporting documentation.
Business Plan. Business plans are required for all start-up and most change of
ownership situations.
Franchise Documents
Photocopy of the Purchase and Sale Agreement or Letter of Intent. Copy of the
Purchase and Sale Agreement or Letter of Intent is required for all start-up and
most change of ownership situations.
Copies of any promissory notes that are to be refinanced along with payment
history for each note.

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Step By Step Guide To Build A Hotel

Hotel Franchising & Hotel Management Contracts

The vast majority of hotel brands do not own their hotels, but hotel owners elect
to affiliate with a brand for a fee.

Various types of Hotel Ownership/Management include the following:

i) Individual: This means the owner is completely independent with regard to


policy formulation and operating procedures.
ii) Chain Ownership: A chain owns the hotels, formulates policies for them and
staffs it with its own employees.

iii) Lease and Joint Venture: Under lease agreements, The Hotel Chain leases a
hotel building from a property owner or other partner and are entitled to the
benefits of, and carry the risks associated with, operating the hotel. The Hotel
Chain derives revenue primarily from room sales and food and beverage sales in
restaurants, bars and banqueting. Typically, lease agreements include a variable
rent clause under which the Hotel chain is obligated to pay a variable rent based
on a percentage of the total revenue generated by a hotel ("variable rent") and the
majority of lease agreements also include a minimum rent payment obligation
which is independent of the revenue generated by the hotel ("fixed rent").

The duration of lease agreements varies, but they are typically long-term, 20 years
or longer.

iv) Franchise: Under franchise agreements, the Hotel Chain authorizes a third-
party hotel operator or property owner to operate a hotel under the selected
brand name. Under such agreements, the chain neither own, lease nor manage
the hotel. The Hotel Chain derive revenue from a brand royalty or licensing
fee which, under most of franchise agreements, is based on a percentage of
total room revenue generated by a hotel. In addition, the chain also collects
marketing fees based on total room revenue and reservation fees based on the
number of reservations made.

To maintain brand image and value, franchisees are obligated to meet specified
brand standards. A franchisee also has access to the chain reservations system and
is provided with marketing support and other know-how for operating the hotel.

The duration of franchise agreements vary, but they are typically for a term of 10
years or longer.

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Step By Step Guide To Build A Hotel

v) Management Contracts: Under Management Contract agreements, The Hotel


Chain provide management services for third-party hotel proprietors. The Hotel
Chain derive revenue primarily from base fees determined as a percentage of total
hotel revenue and incentive management fees defined as a percentage of the gross
operating profit or adjusted gross operating profit of the hotel operations. In
addition, The Hotel Chain also collects marketing fees based on total room
revenue and reservation fees based on the number of reservations made.

The duration of management agreements varies, but they are typically long-term,
normally between 15 and 20 years.

Certain type of hotels can potentially perform better as independents, in particular


upper end unique "one-of-a-kind" hotels, specialty boutique style hotels, strong
destination based and/or resort hotels.

Independent positioning also allows for greater flexibility in establishing rates. As


a member of a chain, a hotel’s pricing strategy must be consistent with the overall
positioning and perception of the chain. It is very difficult for a franchisor or chain
organization (in particular for chains having more than one product brand) to
develop national pricing strategies that address the needs and objectives of all
hotels within their systems.

Given the dollars involved in purchasing and maintaining a franchise or affiliation,


the decision to be a franchise or chain affiliated hotel is one of the most critical
decisions in a hotel investment. For many hotels the costs associated with
purchasing and maintaining a franchise represents the second largest (after labor)
expense category.

Historically, franchise and chain affiliation decisions were often driven by lending
requirements. The need to have an affiliation to secure financing evolved out of a
very real concern (by lenders) about a property’s having access to a reservation
system and the need for many hotels to tie into national marketing and
promotional programs to generate business.

And since in the past these services were not readily available on a stand alone
basis, a franchise or affiliation was often routinely required as a prerequisite for
financing. Today, however, there are several cost-effective alternatives (to
franchising or chain affiliation) available for a hotel to tie into an independent
reservations systems/services, and for purchasing direct sales and/or trade show
representation services, advertising and public relations expertise etc. on a "stand
alone" or ala carte basis.

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Step By Step Guide To Build A Hotel

Advantages of Franchise

• Assist hotel owners to acquire a brand name with regional or national


recognition

• Connect the hotel to the GDS

• Increasing hotel’s sales, thus its profitability

• Affecting ability of hotel’s owner to secure financing

• Assistance with on-site training, advice on purchasing furnishings &


fixtures, reduced operating costs, & free interior design assistance

Considerations for selecting a Franchise Brand

• Quality and experience of Brand Managers

• Perceived quality /Service level of a brand

• Fees charged

• Number of hotels currently operating under that brand

• Percent of hotels, on an annual basis, that elected to leave the brand in the
past five years

• Number of new properties currently being built under the brand’s name

• The number of existing hotels converting to the brand (if conversions are
allowed)

• ADR trend for the last five years in comparison to ADR trend for the
industry segment in which the brand competes

• Occupancy rate trend for the last five years in comparison to the occupancy
rate trend for the industry segment in which the brand competes

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Step By Step Guide To Build A Hotel

• Percent of total hotel room revenue contributed by the brand’s reservation


system and percent of hotels within the brand that achieve that average
rate of contribution

• The amount of fees paid to franchiser


- Fees paid to a franchiser are a negotiable part of franchise
agreement

• Direction of the brand

The Franchise Agreement

Franchise agreement is a legal contract between hotel owners (franchisee) and


brand managers (franchiser), which describes duties & responsibilities of each in
the franchise relationship

Names of parties signing agreement


- Name of legal entity representing the brand as well as corporation,
Partnership or sole proprietor owning hotel

License grant
- Description of how the owner is allowed to use the brand’s logo,
Signage, and name in operating the hotel.

Term (length of agreement)


- The most common franchise agreements are written for 20 years.
- Also include windows at fifth, tenth, & fifteenth years with early outs
Fees
- Affiliation fees / royalty fees / marketing fees / reservation fees
Reports
- Room revenue generated, occupancy levels, & occupancy taxes & ADR

Responsibilities of franchiser
- Inspection schedules, marketing efforts, & brand standards enforcement

Responsibilities of the franchisee


- Signage requirements, operational standards & payment schedules

Termination or default
- Events that permit a termination, or define a default, by either party

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Step By Step Guide To Build A Hotel

Insurance requirements
- Owner should provide types & amounts of required insurance
- Proof of general indemnification policies, automobile insurance, &
Mandatory workers’ compensation insurance

Requirements for alteration


- Rights of the franchiser to change the agreement

Arbitration and legal fees


- Responsibilities of each party related to legal disputes

When discussing franchise requirements, ask specific questions in the following


areas:

A. Length of affiliation: for your protection, should not be less than 10 years, or
more than 20. Whether 10, 20 or in-between, insist on intervals of windows of
exit, i.e., a three year 60 day window to review franchise effectiveness, and if
unsatisfied should be able to terminate without penalty. Most franchisors still
insist on liquidated damages for termination. That's why you need exit strategy.

B. Be specific about territory of franchise and competition, current and future.


You should have at least a five year assurance of your exclusiveness.

C. Transfer of Franchise: You should be allowed to transfer when you wish to sell.
If not, requiring a purchaser to ante up for refranchising or requiring change of
franchise may prevent sale.

Franchise Fees
Payment of continuing franchise fees commences when the hotel assumes the
franchise affiliation, and is usually paid monthly over the term of the agreement.
Continuing fees generally include a royalty fee, an advertising or marketing
contribution fee, and a reservation fee. In addition, continuing fees may include a
frequent traveler program and other miscellaneous fees. The continuing fees we
analyzed are categorized as follows.

Royalty Fee: Almost all franchisors collect a royalty fee, which represents
compensation for the use of the brand’s trade name, service marks and associated
logos, goodwill, and other franchise services. Royalty fees represent a major source
of revenue for a franchisor.

Step By Step Guide To Build A Hotel 73


Step By Step Guide To Build A Hotel

Advertising or Marketing Contribution Fee: Brand wide advertising and marketing


consist of national or regional advertising in various types of media, the
development and distribution of a brand directory, and marketing geared toward
specific groups and segments. In many instances, the advertising or marketing
contribution fee goes into a fund that is administered by the franchisor on behalf
of all members of the brand.

Reservation Fee: If the franchise brand has a reservation system, the reservation
fee supports the cost of operating the central office, telephones, computers, and
reservation personnel. The reservation fee contains all distribution-related fees,
including fees payable to third parties, such as travel agents and distributors.

Other Miscellaneous Fees: This category includes fees payable to the franchisor or
third-party supplier(s) for additional system and technical support. It also includes
fees related to training programs, and national and regional annual conferences.

Sometimes franchisors offer additional services. These services generally include


consulting, purchasing assistance, computer equipment, equipment rental, on-site
pre-opening assistance, and marketing campaigns. The fees for these services are
typically not quantified in the disclosure document.

The assessment of continuing franchise fees is based on several different formulas.


In general, royalty fees are calculated based on a percentage of room’s revenue.
However, a few hotel operators charge an additional royalty fee based on a
percentage of food and beverage revenue. The ratio of royalty fee to room’s
revenue ranged from 2.50% to 6.00%.

Advertising, Marketing, and training fees are usually calculated as a percentage of


rooms revenue, and ranged from 1.0% to 4.5%.

In some cases, reservation fees are based on a combination of a percentage of


room’s revenue (0.15% to 4.50%), a dollar amount per available room per month
($3.00 to $8.65), and a fixed dollar amount ($1.00 to $25.00), which depends on
the source of booking, per reservation.

Generally, these various fee formulas are applied individually, but in some cases,
franchisors combine a number of formulas. Many also have first-month
contingency fees in lieu of recorded revenues (e.g., a royalty fee of $24.00 per
room for the first month and then 5.0% of gross revenues in the ensuing months).

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Step By Step Guide To Build A Hotel

Hotel Management Contract

It’s a form of agreement between the owner of the hotel and a hotel management
company, to run the hotel. The owner will have limited control on the operation
in this form of Management.

The hotel management company will provide expertise and management and they
charge a specified fee as per the terms of agreement

Management Contract term

The initial term of a management contract is the length of time that the agreement
is to remain in effect. Initial terms usually last ten, 15 or 20 years, depending on
the brand and positioning of the operator selected. Popular hotel companies can
demand longer initial contract terms.

Renewal terms generally extend the total length of an initial term. This is
commonly done by mutual consent and is rarely unilateral. In general, renewal
terms occur in multiples of five years, occasionally ten. Most contracts offer two
terms (sometimes more) on the condition that six months’ written notice is given
prior to the end of the current term.

Operating Fees

An operator will typically receive remuneration from the owner, often termed a
base fee, in exchange for performing the duties specified in the contract. Base fees
typically range from 2% to 4% of total revenue.

In addition to the base fee, an operator usually receives an incentive fee based on a
percentage of profits. This may be curtailed, for example, until profitability
reaches a certain threshold, or until minimum return requirements to the owner
are met (typically related to debt service). These incentive fees are typically
related to one of the following.

• Gross operating profit (GOP) before the deduction of base management fee
(although this is rare).

• Adjusted GOP (calculated by deducting the base management fee from the
GOP).

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Step By Step Guide To Build A Hotel

• Net operating profit (NOP) after deduction of some or all fixed charges, for
example building insurance, property taxes, reserve for replacement of
furniture, fixtures and equipment (FF&E), or rents payable.

• NOP after deduction of some or all fixed charges and an owner’s priority
return. In this event the percentage fee payable to the operator is
sometimes higher.

A growing number of operators accept lower base fees in return for higher
incentive fees of up to 15% of GOP, which are intended to reward operators more
generously for outperforming agreed targets.

While a set incentive fee of about 10% of GOP was typical, it is becoming
increasingly common to have scaled incentive fees. The tendency towards higher
or scaled incentive fees versus higher base fees rewards effective operators but also
increases the proportion of free cash flow to equity in the event of poor operator
performance.

Other fees and charges typically relate to contributions to the operator in respect
to reservation systems, sales and marketing contributions or assessments,
accounting charges, purchasing costs, and license or franchise fees. These fees are
often set as a percentage of rooms’ revenue, and typically range from 1% to 4% of
gross rooms revenue.

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Step By Step Guide To Build A Hotel

Hotel Project Cost estimate and Budget

The cost of capital in building a hotel is the minimum rate of return expected by
its investors. It is the weighted average cost of various sources of finances used by
a hotel. The capital structure may be in the form of debt, preference capital,
retained earnings and equity shares. A decision to invest in a particular hotel
project depends on the cost of capital of the firm, and a fixed minimum rate of
return expected on its investments, so as to maintain the market value of its share.

Building a hotel is a unique project, in contrast to the manufacturing sector where


cost components are highly standardized, precisely prescribed, or directly derived
from the production capacity proposed. All the cost components, in a hotel
project, are left to the choice of the promoters. The variations while making a
hotel are on account of the differences in land costs, hotel concepts, services and
facilities provided and so on.

The building cost depends on the architect's plan, which is in turn, the replica of
the promoter's concept of the hotel with creative ideas involved. The location has
a direct bearing on the cost of construction, because if the materials have to be
sourced from distant places, transportation costs will be higher. The cost of
interior design too is thus dependent on the layout and the concept involved. Yet
another factor to be considered is the FSI (Floor space index) regulation as
applicable to the location.

A hotel building consists of two major sections, namely the guest room and
supplementary support facilities. The supplementary facilities include restaurants,
coffee shops, bar, and lift, health club and spa. The support facilities include staff
cafeterias, executive dining room, cloak room and rest rooms, diesel generator
room, stores, transformer rooms, HT room, purchase, receiving areas, OH water
tanks, parking slots, etc,. Some of these are revenue generating areas while others
are not. Therefore the hotel design should be a judicious ratio of these facilities.
With respect to plant and machinery, there are numerous options available such as
central air conditioning, or partial air conditioning, high speed elevators or
ordinary lifts, customized computer system, state-of-the-art kitchen and bakery
equipments, which are imported or made indigenously. Thus options are several.
As indicated the architect's design and the promoter's concept of the hotel form
the pivotal point for a new hotel project.

Out of the Total Hotel Project Cost, Construction costs form a large proportion of
initial capital costs, accounting for 50–70% of the capital costs of a hospitality
project, it is important that these are managed in the pursuit of maximum project

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Step By Step Guide To Build A Hotel

value. The key players responsible for the management of capital costs are
quantity surveyors (QSs), the Owner, design team and contractor.

Quantity surveyors (QSs): are construction professionals who forecast and manage
construction costs throughout the project lifecycle, advising the client and design
team so as to focus investment on elements of the project that deliver the greatest
benefit to the client, or which minimize risk. Also known as cost consultants, they
also manage the financial implications of changes introduced during the design
and construction programme to ensure that the budget is met.

Owner: The client sets the brief and budget, appoints the project team, signs off
the design and ultimately determines the cost levels of a project. Ways in which
clients can contribute to the effective control of costs include:

Providing a comprehensive brief, sticking to the brief, signing off the design and
avoiding design and specification ‘creep’: Avoiding changes to design and
construction at later stages of a project.

Contractors: Contractors are typically employed to construct a project based either


on designs prepared by the client’s consultants or a scheme for which the
contractor is responsible.

Design team: The design team, typically comprising architect, interior designer,
structural and services engineers, cost consultant and other advisers, is responsible
for the development of the design to meet a brief, budget and programme, based
on an analysis of the client’s needs and wants. Cost and value on a project will be
affected by the match between the design solution and the client’s brief. Other
areas of performance that can affect the outcome of a project include the
management of the design process and the supervision and approval of the
contractor’s work.

The following twelve cost drivers are particularly significant in determining


overall cost levels of a hotel project:

1 Site conditions and characteristics


2 Building plan, layout and massing
3 Quality levels
4 Building services installations
5 Extent of prefabrication
6 Furniture, fittings and equipment (FF&E) expenditure
7 Leisure facilities
8 Extent of external works
9 Requirements of local and statutory authorities
10 Unforeseen work and change to client requirements

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Step By Step Guide To Build A Hotel

11 Speed of construction
12 Location.

When it’s time to build on your land, you’ll use your projected income statement
to tell you the upper limits you should spend on construction. This may sound
cynical, but only you can decide if you’ll have enough guests coming in the door
to support massive construction debts in addition to land costs. So, before you
decide on the buy-land-and-build strategy, you would do well to meet with
consultants and an architect. Together, after listening to your needs, they should
be able to present a preliminary budget that covers all aspects of construction.

Hotel Project cost is divided in to Development cost, Construction Cost, FF&E and
OS&E Cost and Operational cost.

Cost breakdown of a hotel is given below. This will differ from one hotel to other
based on size, standards, facilities and Country:

Development Cost and Soft Costs

Building Permit Fee


All Other Permits Fee
Municipality/Utility Fees & Inspections
Architecture and Engineering Fees
Application Fees
Engineering Survey Fee
Project Management Fee
Appraisals/Survey Fees
Legal Fees
Insurance
Consultants Fees
Other Soft Costs
Feasibility Study Cost
Schematic Design Fees
Landscape Architect Fees
Interior Designer Fees
Development Fee
Franchise Fee
Land Purchase/Leasing Cost
Project Financing/Construction Loan Cost
Administrative and General Costs
Contractor Fees

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Step By Step Guide To Build A Hotel

Hotel Construction Cost

Original Adjusted Estimated


Subcontractor, cost Cost cost
Supplier Description Estimate estimate To complete
Utilities
Excavation
Foundation
Labor
Roofing
Concrete Flatwork
Plumbing
Heating
Electrical Installation
Insulation
Water
Sewer
Site Preparation
Carpentry
Painting
Appliances
Light Fixtures
Floor Coverings
Parking
Other
Stairs
Frame and Upper Floor
External Walls Windows and Doors
Internal Walls and Partitions
Internal Doors
Wall Finishes
Floor Finishes
Ceiling Finishes
Furniture and Fixtures
Sanitary Fittings
Hot and Cold Water Installations
HVAC Installation
Lift Installation
Communication Installation
Total

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Step By Step Guide To Build A Hotel

Furniture Fixture and Equipment Cost


Item Description Vendor Purchased by Installed by P.O. # P.O. $ Budget

Lobby
Front Desk
Furniture
Artwork
Lighting
Drapes & Blinds
Floral Arrangements
Television
Credit Card Phone
House Phone
Public Pay Phone
Luggage Carts
Meeting Room Announcement Board
Interior Signage
Exterior Signage
Meeting Room
Stack Chairs
Folding Tables
Chair Caddy
Lectern w/ Light & PA System
Flip Charts
Misc Serving Equipment
Overhead Projector
Slide Projector
Artwork
T.V. & Cabinet
Conference Call Speaker System
VCR
DVD
Data Ports
Cable TV Outlets
Drapes & Blinds
Business Center
Conference Table
Chairs
Fax Machine
Computer
Assorted Software

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Step By Step Guide To Build A Hotel

Printer
Typewriter
Copying Machine
Misc. Supplies
Artwork
Drapes & Blinds
Typing Table
Total Lobby
Total Meeting Room
Total Business Center
Item Description Vendor Purchased by Installed by P.O. # P.O. $ Budget
Admin Offices
Property Management System
Workstations
Dot-Matrix Printers
Laser Printers
Assorted Software
Safety Deposit Boxes
Time Clock
Drop Safe
Filing Cabinets : Horizontal, Vertical
GM Office Furniture
Back Office Panel System
Back Office Furniture
Sales Office Furniture
AGM Office Furniture
Drapes & Blinds
Typewriter
Copier
Fax Machine
First Aid Kit
Portable 2-Way Radios
Beepers
Calculators
Storage Cabinets
Misc. Office Supplies
Hold-up/Fire Detection Buttons
Phone System
Guest Room Phones
Admin Phones
Installation Labor
Call Accounting. Mgmt. System

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Step By Step Guide To Build A Hotel

Pool Furniture & Equipment


Deck Furniture:
Chaise Loungers
Chairs
Umbrellas w/bases
Dining Tables
Dining Chairs
Planters for Courtyard
First Aid Kit
Water Testing Kit
Shepherds Crook
Life Rings
Pool Cover
Signage
Total Pool Area
Total Admin Offices

Employee Lounge
Lockers
Dining Table
Dining Chairs
Drapes & Blinds
Exec. Hskpr Office Furniture
Refrigerator
Microwave Oven
Television w/ ceiling mount
Commercial Laundry & Housekeeping
Washing Machines
Dryers
Folding Tables
Laundry Carts w/spring platforms
Sheet Folder
Laundry Scale System
House person’s Cart
Detergent System
Room Attendant's Carts
Vacuum Cleaners
Cribs
Sleeper Rollaway
First Aid Kit (also for all closets)
Carpet Shampooer

Step By Step Guide To Build A Hotel 83


Step By Step Guide To Build A Hotel

Guest Laundry
Coin-Op Washers
Coin-Op Dryers
Signage
Phone
Wall Clock
Folding Table
Chairs

Fitness Room
Fitness Equipment
Wall Clock
Wall Towel Hooks
Towel Holder Cabinet
Hamper
Fitness Posters
Water Cooler
Drapes & Blinds
Total Guest Laundry
Total Employee Lounge:
Total Commercial Laundry & Housekeeping
Total Fitness Room

Kitchen Equipment
Restaurant FF&E
Bar FF&E

Guest Rooms
King Beds
Double Beds
King Bed Bases
Double Bed Bases
Sleeper Sofas
Recliners
King Bedspreads
Double Bedspreads
Artwork
Lighting
Case goods
Clock Radios

Step By Step Guide To Build A Hotel 84


Step By Step Guide To Build A Hotel

Guest Service Directories


Drapes & Blinds
Linen
Expendables
Total For All Wall Vinyl
Coffee Makers w/Trays & Supplies
Irons & Boards
Hairdryers
Televisions
Other
Flagpoles
Flooring & Walls (Vinyl, Ceramic, Carpet)
Hallway Artwork
Satellite Dish System
Electronic Door Locks
Millwork
Security

GRAND TOTAL

Step By Step Guide To Build A Hotel 85


Step By Step Guide To Build A Hotel

Hotel Concept Development and Design

Hotel Concept Development

This initial conceptual planning stage is where you define the size, layout, and
look and feel of your hotel. Preliminary decisions made during this stage help
shape the cost, degree of difficulty, and length of schedule required for
successfully developing and opening the hotel.

The preliminary sketches completed during this stage form the framework for the
more detailed drawings and specifications done in the next step.

Concept development involves balancing the strengths and limitations of the site
against the competitive climate in the market, considering the expertise of the
operator and the budget available for the project.

Concept development involves finding and implementing an operating style that


can occupy a unique position in the minds of the target market and be consistently
operated at a profit. This is an inexact science, relying on an elusive ability to "see
what's not there," but there are several identifiable characteristics of a good
concept:

• Flexible - the ability to evolve over time without loss of market identity
• Simple - more classic than trendy with resulting potential for longevity
• Profitable - the ability to generate excellent return on investment
• Duplicable - the ability to regenerate and expand
• Compatible - does not require extensive, expensive renovations to an
existing physical plant
• Fresh and Exciting - not a "me too" approach
• Appropriate - meets a real need and creates sufficient "gravity" to attract
crowds of guests
• Consistent - can deliver on its promises using the prevailing labor market
and existing management capabilities
• Distinct - uniquely fills a niche in the minds of the target market
• Durable - can hold its own in the market
• Complementary - does not require directly confronting a competitor while
enhancing the overall dining market

When the developer is looking for a Hotel idea, it’s assumed that he is searching
for a concept that has the potential to be successfully expanded rather than a one-
time solution for a specific Hotel.

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Step By Step Guide To Build A Hotel

Developing a successful Hotel has three phases: concept development, prototype


development and monitoring. The first phase is the creative process, the second is
the physical part of setting up the new Hotel and the last has to do with refining
the theories based on operating realities.

Concept Development Process

The actual development of the concept occurs in four parts:

Background research

Background work establishes the general realities of the site. It includes examining
economic and demographic statistics, traffic patterns, site visibility and access,
physical limitations and architectural features of the building, equipment installed,
existing utility service in the building and related items.

Market research

Market research includes interviews with the target market, site visits to
competitive and complementary Hotels, reviews of Hotels outside the market area
for elements of interest or value and the identification of strengths, weaknesses
and voids in the market.

Synthesis

Synthesis is the process of digesting all the information gathered in the preceding
steps and arriving at an insight into what direction the project should take. The
results of this step include the name of the Hotel, Style, Standards and operating
profile, pro forma financial projections, basic marketing direction, development
budget and similar elements which define the project. Until all these items are
known, the odds of creating a successful and efficient Hotel are slim.

Documentation

All the pieces of the project are summarized in a report which clearly defines the
project and assists the owner in making decisions about the project, securing
financing (if necessary) and creating a blueprint for developing the project. Even if
the report is only used internally, it is a valuable document for keeping the project
on track and under control.

Prototype Development

Developing the prototype is the physical processes of making the Hotel happen. It
includes layout and design, the preparation of working drawings, bids and awards,
construction and project supervision, disposal of existing FFE not needed,

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Step By Step Guide To Build A Hotel

specification and purchase of new FFE, specification and purchase of systems,


recipe development and testing, logo and graphics, preparation of a detailed hotel
marketing plan, selection of purveyors, hiring and training of staff, selection of
uniforms, development accounting, pre-opening promotions and other activities
required to go from a great idea to a great Hotel. This is the time when you
establish the culture of the Hotel which will influence the working climate of the
business for years. It is also the time when you first present yourself to the public
and gain that all-important first impression.

Monitoring

Once the Hotel opens, it is necessary to observe the operation and make fine-
tuning adjustments required to assure a strong start for the venture. During the
first 60 days of the Hotels operation, there will be many minor modifications and
systems required to improve operational effectiveness and enhance
profitability/cash flow. This phase involves staff and management coaching and
training as well as review of financial performance.

Design process

As in any other large project, the design process of a hotel begins with conceptual
sketches, to get a sense of what the Hotel Developers preferences are, which is
followed by working drawings for presentation purposes, for appraisals, funding,
and the ever present Planning Commissions.

In addition to the working drawings several views of the exterior of the project is
added to enhance its realism, and believability.

Development Company need to arrange for licensed architects, engineers, interior


designers, or other qualified professionals to produce design and construction
drawings, interior décor proposals, material samples, and specifications describing
all new hotel developments.

Preliminary Design Proposal –The preliminary design proposal consist of


preliminary site plan, building floor plans, individual guest unit furnishing
plans and exterior elevations.

Construction Drawings –Construction documents include all disciplines of design,


including site, structural, architectural, mechanical, electrical, and plumbing
designs.

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Step By Step Guide To Build A Hotel

Reflected Ceiling Plans - Reflected ceiling plans show lighting, ceiling heights,
materials, finishes, and design details for the Lobby, and guest corridors etc

Light Fixture Proposal –A proposal consisting of specifications and physical


appearance of all light fixtures proposed for the entire development (interior and
exterior).

Interior Décor Proposals – Interior Décor Proposals include color boards,


drawings, and material samples showing the proposed décor scheme for the whole
of public areas and typical décor scheme for each guest room type. Décor proposals
must describe finishes and style of all hard goods, soft-goods, case goods, millwork
and decorative moldings, interior finishes, lighting (including decorative),
artwork, fixtures, and equipment that comprise the interior of a space.

Millwork (i.e. Registration Desk, Restaurant Buffet Station, etc.) –Cabinet


drawings showing the elevations, millwork, finishes and colors of these counters.

Exterior Color Scheme and Finishes – A professionally prepared colored rendering


or exterior elevation showing the typical colors and finishes proposed for the
exterior.

Fire Detection and Alarm Systems –Drawings showing the complete design of the
Fire Detection and Alarm Systems.

Fire Suppression System – Drawings showing the complete design of the Fire
Suppression system.

Landscape Design Proposal - Design drawings showing the complete landscaping


design for the entire hotel development.

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Step By Step Guide To Build A Hotel

Hotel Design Guidelines

The Owner and Architect will primarily control the allocation of space of the
hotel, together with the guidelines of the Franchising Company if a Franchise is
sought.

This team will determine how much of total space will be devoted to guest rooms
and how much to other service areas.

Four distinct types of areas are involved: guest rooms, public areas, administration
offices and ‘back-of-house’. Facilities between these areas must be planned to
provide separation of customer and back-of-house areas but also allow efficient
service without cross-circulation or distraction.

Layouts depend on the location and surroundings, the area, contours and cost of
site, plot ratios and other planning conditions, and the required size (number of
guest rooms) and sophistication of hotel

This also applies to those public areas in which daylight is essential: from
restaurants, small meeting rooms and foyers or lounge areas to larger convention
halls.

The residential areas of a hotel normally account for at least 65-70% of the total
built space, and the number of bedrooms is critical in relation to hotel operation.

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Step By Step Guide To Build A Hotel

Sample Hotel Site Plan:

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Step By Step Guide To Build A Hotel

Hotel Fire Safety Design Guidelines

Automatic Fire Sprinkler System: All Sprinkler systems must meet the local
government minimum requirements.

Fire Extinguishers & Hose Reels: Hose reels may be required at the discretion of
local authorities.

Detection & Alarm Systems:

A fire/smoke-activated general alarm system comprised of automatic detection


and manual alarm-initiating devices should be installed.

Manual Pull Stations: Adjacent to all exit doors that lead directly to the exterior
and at all stairwell entrance doors.

Detectors: Approved smoke detectors are required except where room


atmosphere requires the use of heat detectors.

Detector Locations:

Guest Room Corridors: Detection devices are required throughout guest room
Corridors.

Storage Rooms: Detectors are required for all storage rooms more than 150 sq. ft.
(13.9 m2).

Public, Service & Back-of-House Spaces: Detection devices are required


throughout the public areas, service areas, electrical rooms, attic areas, storage
areas, and mechanical areas.

Guest Rooms: One single-station, hard-wired 110-volt smoke detector is required


per guest room .A detector is required in both living and sleeping areas of suites
unless the suite is a single room.

Fire Alarm Control Panel: Fire alarm control panel must comply with as directed
by local fire authority. The preferred location is near the front desk. The panel
must contain the following features:

– Manual general alarm or complete voice evacuation system.


– Audible and visual alarm.

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Step By Step Guide To Build A Hotel

– Clear indication of specific alarm zone and functioning status of the fire
detection system.
–Automatic emergency power.

Fire-Rated Separations/Enclosures: Minimum one-hour construction is required


in all areas.

Fire-Rated Doors:

One-Hour Construction: A 45-minute rated door and frame is required, except at


guest room entrances, which may be 20-minute rated doors.

Two-Hour Construction: A 90-minute rated door and frame is required.

Door Closers:

Required for storage, maintenance and equipment rooms, and exit doors.

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Step By Step Guide To Build A Hotel

Hotel Identification Design Guidelines

Each hotel must have a primary brand identity sign (either freestanding or
building-mounted wall script sign) that is placed such that the hotel is easily
Identified.

Additional Hotel identification ideas include:

The Hotel primary sign and/or building script sign(s) must be illuminated
from sunset to sunrise.

The national flag and other appropriate brand flags are optional and may be
displayed at an exterior location near the main entrance. Illumination is
required if the flags remain out at night. Flag size must be a minimum of 3' x 5'.

Exterior directional and information signs are required. Signs must be


professionally designed, fully coordinated, framed, or decorative self-edged type
signs. Directions to the lobby, recreation facilities, or parking areas, and
information for parking restrictions and limited access are examples of common
exterior directional and information signage.

Property Main Entrance

The hotel property Main Entrance drives must be easily recognized and must
have an inviting design appeal. Locations of electrical transformers, fire
hydrants, utility poles, phone service pylons, or other such utility services
visible by the public should be carefully planned so as to not border the
property entrances unless specifically directed otherwise by governing
authorities.

Signs that mark the entrance or identify the hotel must be attractive
components of the entrance design .Use of seasonal, colorful landscaping, accent
lighting and decorative drive surfaces is also encouraged for enhancing the
property entrance designs. Trash collection facilities may not be located
adjacent to the property entrance or along the arrival route to the Porte
Cochere.

Parking Lot

The parking lot must have an asphalt or concrete-paved surface with continuous
concrete curbing around the interior and outer perimeter of the parking lot and

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Step By Step Guide To Build A Hotel

at all property entrance drives.

Parking

A minimum of 1.1 parking spaces per guest room, plus adequate employee
parking, is advisable.

Parking Garage

If provided, the garage must be architecturally compatible with the hotel’s


architectural design. Access to guest corridors from the parking garage must be
controlled to allow only registered guests and hotel employees to enter. The
garage must be well lit to ensure guest safety and convenience and must be in
accordance with recognized lighting standards.

Exterior Lighting

Parking areas, drives, walkways, steps, and courtyards must be lighted to ensure
guest safety and convenience in accordance with recognized lighting standards.
Decorative street lamp lighting is encouraged at hotel perimeter sidewalks in
lieu of institutional, pole-mounted or wall-mounted area lighting commonly
used for illuminating the main parking lots. Where building-mounted lighting
is used, the fixtures should be decorative.

Landscape or accent up-lighting that highlights features of the hotel at night is


encouraged. Use of high-pressure sodium light fixtures is encouraged for all
exterior illumination due to its superior energy savings and color cast.

Landscaping

Abundant, colorful landscaping that enhances the guest experience and


perception of the hotel must be provided. Live plantings, including a variety of
trees, shrubs, seasonal flowering, and grass plants are required at the hotel
property entrance drives, between the parking lot and public streets, between
hotel parking lots and neighboring properties, around the hotel perimeter, in
courtyards, and around the perimeter of exterior swimming pools.

Large parking lots require curbed landscaped islands located intermittently


throughout the lots to interrupt large areas of asphalt/concrete paving with
green space.

The bulk of hotel perimeter landscaping should be applied near the lobby
entrance, in front of the Porte Cochere, and at the secondary hotel entrance.
Plantings that will thrive in the local environment should be selected and

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Step By Step Guide To Build A Hotel

irrigation systems that aid continuous growth should be used. Approximately


fifteen percent of the hotel site must be devoted to landscaping plants as
described by this standard.

Neighboring Properties

Landscape barriers, decorative fences, or other devices that screen excessive


noise or undesirable views of neighboring properties may be required during
initial review of the site design. Railways, industrial sites, apartment complexes,
and residential neighborhoods are examples of neighboring properties that
would require the hotel to provide visual and/or noise barriers.

Fences

All fences used on the property must be in keeping with the exterior design of
the hotel.

Pedestrian Design Traffic

Concrete sidewalks must be provided around the perimeter of the hotel that
connects the lobby entrance with all secondary public entrances. Wheelchair
accessible ramps must be provided at appropriate locations around the periphery
of the hotel to ensure access to all public entrances via the perimeter sidewalk.
Decorative items such as street lamps, benches, and planters accented with
stone, brick, or water are encouraged along public walks and around the
perimeter of the hotel.

Hotel Entrance and Lobby Design Guidelines

The main entrance must be attractive and functional. The main lobby is the
center of any hotel.

The lobby includes a front desk , lounge area, Public Telephones, Cloak
Rooms, Facility for Luggage, Concierge, Shopping arcade etc

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Step By Step Guide To Build A Hotel

Porte Cocheère:

Structure & Design: A Porte Cochere that identifies the hotel’s primary
entrance in a clearly visible and aesthetically appealing manner must be
provided. Porte Cochere structure must be independent of the hotel’s roofline
or façade with a separate, decorative entrance canopy covering the transfer
from arrival to lobby entrance.

Drive Surface: The Porte Cochere drive surface must accommodate two lanes
of traffic. Decorative stone pavers, a patterned synthetic cement topping or
integrally colored and patterned concrete are acceptable materials for the
decorative drive surface required beneath the Porte Cochere. Curb cuts shall
be provided to meet Government requirements and able guests as well.

Clear Height Opening: A clear height opening that will accommodate tall
vehicles (12'-0" minimum clearance) must be provided and must be posted
with clearly visible signs on the approach sides of the Porte Cochere when less
than 14'-0" clear.

Lighting: Porte Cochere lighting must be provided via recessed fixtures and/or
decorative fixtures when exposed to guest view. All conduit and wiring for
Porte Cochere and canopy lighting must be concealed from view.

Lobby Entrance: A Lobby entrance vestibule is required. Automatic operating


entry doors can also be considered for the main lobby entrance.

Luggage Area: A lockable luggage room must be conveniently located near the
hotel entrance and must be sized to accommodate a minimum of one rolling
luggage cart.

Seating and Furnishings: Seating, tables, and accessories are required in the
Lobby and must be in keeping with overall Concept.

Emergency Lighting:

Locations: Required at entrance, lobby, front desk, interior corridors,


elevators, stairwells, exterior corridor stairways, pantry, banquet/meeting
facilities, business center, interior swimming pools, exercise room, game room,
saunas, atriums, garage, public restrooms, employee restrooms, housekeeping,
laundry, maintenance, and equipment rooms. Emergency lighting must be
located within each stairwell on every other level for interior corridor hotels.

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Step By Step Guide To Build A Hotel

• Public telephone should be located close to the reception area or


should be plainly visible from the lobby area.

• The front office, executive offices and sales and catering offices is
usually together in one area, at the Lobby level.

• Guest lifts are best located off the main lobby within control of the
front desk.

• Guest and Service lifts are often sited back to back for economy
reasons.

• Toilet facilities are usually required near main lobby, restaurants and
bars, banquet rooms and other services like Spa, Swimming Pool etc,
they should be cited discretely.

Front Desk Design Guidelines

• Front Desk space requirements depend on the size of the hotel, grade,
standards or pattern of arrivals and departures.

• This area should be column free to allow clear visibility and


circulation. The Reception area should be easily visible from the lobby
entrance.

• Should be closer to the entrance for easy access for physically


challenged guests.

• Reception desk should be long enough for guest privacy and to prevent
crowding.

• Signage for the guest to identify the functions like cashier etc.

• Seating should be located near the counter, so that a waiting guest is


not required to stand.

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Step By Step Guide To Build A Hotel

• For reception, Indirect general diffused lighting is supplemented by


wall, counter, recessed soffit and table lamp direct illumination for
contrast to aid people with vision differences.

• The Reception Counter is usually 3.5 meters in height. (42 inches) and
2.5 meters (30 inches) for seated work area.

• Overall width should not exceed 27 inches.

• The desk may be single straight counter or turned around a corner

• Working space behind the counter is a minimum 1.2 to 1.5 meters


wide.

• Desk space requirements would depend on the size of the hotel, grade
or standards and arrival patterns.

• Peek demand must be accessed from market analysis.

Front Desk Design: The registration desk must have a millwork façade that
coordinates with the lobby décor. The transaction surface of the registration
desk must be a stone or solid surface material.

Walls: The walls behind the registration desk must be free of cabinets and
work surfaces. All key, message, and folio racks must be out of guest view.

Minimum Length: The registration desk must be at least 3 meters to 14'-6"


(4.42 m) long.

Artwork: Hotels must have professionally framed artwork that complements


the lobby décor installed on the wall behind the registration desk.

Safety Deposit Boxes: Each hotel must have at complimentary guest safety
deposit boxes.

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Step By Step Guide To Build A Hotel

Guest Room Floor


Planning guest-room floor presents one of the greatest challenges in hotel design.
Because guest rooms and suites generally represent between 65 and 85 percent of
the total floor area in a hotel or resort, any savings in the planning of a given floor
arrangement (or grouping of rooms) is multiplied many times. Therefore, a major
planning goal in every lodging project should be to maximize the amount of
salable guest-room space and keep to a minimum the vertical core, horizontal
circulation, and necessary support areas.

A chief goal for hotel planners is to find an efficient floor plan for guest rooms

In addition, guest-room planning comprises several important architectural


objectives. The architect should select a particular plan configuration and orient
the building to (1) enhance the appearance and visibility of the structure, (2)
reduce energy costs, and (3) accommodate possible future expansion. Should
lodging demand increase, the owner may want to add rooms, whether by
extending the guest-room wings, adding additional floors, or building a new
structure.

For many projects the architect needs to consider a configuration and orientation
to take advantage of views from the guest rooms. In developing the plan itself, the
designer should reduce as much as possible the walking distances for both the
guest and the housekeeping staff, provides for support functions, and seek ways to
reduce construction cost and non-salable space.

The program requirements for the guest-room floors are relatively few: a
designated number of guest rooms or suites, conveniently located public and
service elevators, exit stairways to meet building codes and provide safe
emergency egress, adequate linen storage and vending areas, and small-electrical-
and telephone-equipment rooms.

The most appropriate configuration for the guest rooms depends largely on the
nature of the building site. In densely populated urban areas, where land costs are
high and the site may be relatively small, the ideal arrangement of public and
support spaces on the lower floors may be the most critical consideration. Two
major planning requirements often dictate both the shape and the placement of
the guest-room structure on urban sites. Those requirements are the preferred
location of the public and service elevators and of the column-free ballroom. At
resort properties, on the other hand, the opposite is true: the functional
organization of the hotel's elements is secondary to the careful siting of the
buildings to minimize their impact on the site and to provide views of the
surrounding landscape or beach. Many resorts feature not a single building but,

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Step By Step Guide To Build A Hotel

instead, provide a number of villa structures that greatly reduce the perceived
scale of the project, give the guest a greater connection to the site and the
recreational amenities, and enhance the sense of privacy. At airport sites, height
limitations often dictate the choice of a specific plan--one that packages the rooms
into a relatively low and spread-out structure.

One factor that limits the number of rooms on the guest-room floor is the typical
code requirement for hotels with automatic sprinklers that there be no more than
(typically) 300 ft. (91 m) between exit stairs. Therefore, another goal in planning
the repetitive guest-room floor is to create a layout that does not require a third
fire stair. Experienced hotel architects have established techniques for maximizing
the number of rooms per floor and manipulating the stairs and corridors to
increase the building's overall efficiency.

After the architect establishes the conceptual design, including a basic


configuration for the guestroom floors, the team needs to refine and modify the
earlier thumbnail guest-room program to fit the architectural concept--or shape
the building to accommodate the nuances of the program. The room mix is based
on the initial market study and, more important, on the advice and experience of
the hotel-operating company. The guestroom program defines the typical room
module (key dimensions and bathroom configuration), the mix of room
furnishings (e.g., single king bed, two double beds), and the variety of suites. The
proposed room mix is intended to reflect the estimated demand from the
individual business, group, and leisure market segments.

Design development of the guest-room floors to meet the specific requirements of


the program is among the earliest steps in refining the conceptual design. The
design team studies a wide range of possible modifications, including changing the
width of the guest-room module, the number of bays per floor, the location and
layout of the elevator and service cores, and the arrangement of suites.

Guest Room Corridor

Usually between 25 to 35 percent of the total gross built area is taken up by the
corridors, stairs, lift shafts, associated service rooms and ducts.

Gross factors can range from 20 to 30 % for double loaded central corridors
accessed by lifts and stairs to 35 to 45 % for single loaded side corridors and tower
buildings.

Lengths of corridor are limited by travel distances to protected fire escape stairs.

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Step By Step Guide To Build A Hotel

Guest Corridor Design Guidelines

Guest Room and Other Corridors: Two (2) exits per floor are required, with
travel distance not to exceed 100 ft. (30 m) for non-sprinklered buildings or 200
ft. (60 m) for sprinklered buildings.

Emergency Exits: Exit Requirements Based on Occupant Load. Rooms or spaces


with occupancy of fifty (50) or more require two separate exits.

Illuminated Exit Signs: Required at each exit location. Illuminated directional


exit signage is required when the exit is not immediately visible. Emergency
power is required.

Guest Room Floor Layout 1

Guest Room Floor Layout 2

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Step By Step Guide To Build A Hotel

Guest Room Design Guidelines

Non-Smoking Rooms: The hotel must designate and maintain at least Certain
Percent of guest rooms for non-smoking guests as per local laws.

Guest Room Minimum Dimensions(Excluding Bathroom):

All guest rooms with a single bed (queen or larger), or two beds must be 12'-0" x
18'-0" (3.65 m x 5.5 m) or 216 ft. (20 m) minimum.

Guest rooms with single double beds must be a 12'-0" x 14'-0" (3.65 m x 4.26 m)
or 168 ft. (15.6 m) minimum.

Closet: Closet interior width must be 2'-6" minimum. A laminate covered shelf
with a 15" minimum depth is required inside the closet. A chrome rod
(minimum 1" diameter) mounted on the underside of the shelf is required.
Double-hinged closet doors must be provided.

Doors: doors must be 3'-0" x 6'-8" (0.91 m x 2.03 m), 1" (2.54 cm) solid core with
a hardwood finished surface or 1-3/8" (3.5 cm) sound insulated metal. Plastic
laminate, embossed, and panel-style doors are acceptable.

Door frame. Shall be hollow metal (one piece or knock down) and must have a
sound insulating strip.

Fire Rating: Guest room doors must be minimum 20-minute fire rated door and
frame.

Electronic Card Key Locks: Electronic card key locks can be fitted to guest room
entrance doors. The electronic lock system must have the following features and
capabilities:
– Re-key at each rental, voiding all previous keys
– Power down backup system
– Emergency override
Audit/interrogation feature
Easy to upgrade
All-weather capability

A guest-operated turn piece must be incorporated as part of the latch set, inside

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Step By Step Guide To Build A Hotel

the guest room, operating the deadlocking latch.

Emergency access must be by a key that retracts both deadbolt and latch bolt.

When the deadbolt is in a projected position, all keys except the emergency key
must be inoperable.

Auxiliary Locks: An auxiliary non-keyed locking device must be provided on all


guest room entrance doors that meets the following standards:

Can be a “safety latch” or other non-keyed locking device.

The unit must be installed to the door jamb and the door to maximize security
and strength of installation and assure ease of operation for the guest.

Self-Closing Devices: All doors must have automatic closing devices that will
latch the door.

View Ports: All doors must have a one-way view port mounted 5'-0" (1.5 m)
above the floor.

Evacuation Plan: A professionally designed, fabricated, and framed diagram


(approximately 4" x 8" (10 cm x 20 cm) showing the exit path from each
guestroom to the nearest exit must be posed on the room side of each guest
room entry door.

HVAC Systems

A heating, ventilating and refrigerated cooling system is required in each guest


room. Through-wall units must be architecturally compatible and flush-
mounted with the front face of the grill and unit not to exceed 3" (7.62 cm)
from the finished exterior face.

Controls: All guest room HVAC systems must have individual, in-room
thermostat control of heating and cooling year-round and on-demand. Clear
instructions on how to operate the heating and air conditioning must be on or
near the HVAC operating controls.

Alarm Clock/Radio: An alarm clock/radio is required on a nightstand in each


guest room.

Coffee Maker and Supplies: An electrical outlet must be within reach of the
coffee maker’s electrical cord.

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Step By Step Guide To Build A Hotel

Iron/Ironing Board: A full-size iron with ironing board 52-1/2" (1.33 m) length
and 13"(0.33 m) width, 36" (0.91 m) height when extended) and holder is
required in each guest room. A high-quality, permanently mounted, flip-down
ironing board kit installed inside a cabinet/armoire is also acceptable The iron
must automatically turn off after 15 minutes of no movement.

Telephones: A minimum of two (2) touch-tone telephones must be provided in


each guest room. One telephone is required at bedside and one is required at the
work surface. Both the nightstand telephone and the desk (or work area)
telephone must be two-line telephones with message-waiting light, data port,
volume-control handset, programmable buttons, and an easily understandable
custom face plate with appropriate logo.

Each two-line telephone must allow for two (2) simultaneous conversations or
for one conversation and the simultaneous use of a personal computer. The desk
(or work area) telephone must include a speakerphone. Each handset cord must
be a minimum of 6 ft. (1.83 m); each line cord must be a minimum of 14 ft. (4.27
m).

Television: One 25" (63.5 cm) or larger diagonal-measure, closed-captioned,


remote control, color television set is required in each guest room. In-room
coaxial cables must be concealed from view where possible.

Sleep Sets

Bed bases and frames must provide support at edge or outer perimeter and
center of box springs.

Mattress and Box Springs: Cover fabric must be flame retardant and pass
cigarette ignition test.

Rollaway Beds: Must be minimum 3'-3" x 6'-2" (1 m x 1.88 m) with 4" (10 cm)
thick innerspring mattress.

Soft Goods Category: Soft Goods Category items are defined as carpet,
draperies/window treatments, upholstered items (e.g., chairs, ottomans and
luggage benches) and bedspreads/coverlets/dusters.

Hard Goods Category: Hard Goods Category items are defined as all other
furniture in the room, including case good pieces such as headboards,
nightstands, credenzas/ dressers, armoires, desks, and tables as well as wall
covering, artwork, mirrors, and lamps.

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Step By Step Guide To Build A Hotel

Floor Covering

Carpet, Tile, natural stone, or wood flooring.

Window Treatments (Draperies and Drapery Fabric): All windows and sliding
glass doors must have window treatments.

Bedding Fabric (Bedspreads, Coverlets and Dusters): All bedspreads, coverlets


and dusters must be flame retardant and must coordinate with the other design
elements of the room.

Seating and Upholstery Fabric: Fabric upholstery is required for all seating.

Artwork: Two (2) framed pictures are suggested in the guest room sleeping area.

Case Goods :

One-piece desk
24" D x 48" W;
Four (4)-leg style

Activity table Round: 34" diameter or


Square: 30"D x 30" W (Minimum)

Nightstand Standard: 22" W x 16"D or


Oversize: 30" W x 16" D (minimum)

Headboards To coordinate with mattress size

Armoire unit TV armoire with minimum two (2) Drawers


(Doors at TV section optional) preferred for all rooms – 35" W x 20" D x 60" H

Dresser/credenza

Minimum two (2) Drawers 66" W x 20" D x 23" H;


Two-Drawer units must have faux drawers below the operating drawers or a
solid flush panel.

Lighting: All lamps and lighting fixtures must comply with the following
minimum specifications:

Guest room entry must have at least one fixture wall-switched at the guest room
entrance.

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Step By Step Guide To Build A Hotel

All electrical cords must be as short as possible and be concealed from guest
view.

1500 lumen (minimum) fluorescent bulbs may be used in any lamp (preferred)
or 100-watt incandescent light bulbs must be used in all single-bulb lamps, and
60-watt (minimum) incandescent light bulbs must be used in all double-bulb
lamps.

Compact fluorescent bulbs must not emit a noise; interfere with the television
set, or flicker.

Location Foot Candles:

Desk or table 40 foot candles at work surface level directly beneath the fixture
Bedside 40 foot candles at the base of the fixture.

Leisure chair or sofa grouping


15 foot candles at the base of the fixture or 30 foot candles on the top of the arm
of the sofa or chair.

Entrance 3 foot candles ambient lighting under the fixture.

Mirror at sleeping area 7 foot candles at center of mirror; when this mirror is
located above the desk, the desk lighting requirements apply.

Full-length mirror at dressing area


10 foot candles at center of mirror

Mirrors: One (1) mirror is required in the guest room sleeping area. A full-
length mirror must be provided in the closet/dressing area. All mirrors must
meet the following minimum specifications:

All mirrors must be framed.

Mirror must be made of 5 mm distortion free, polished float glass with


corrugated cardboard (or equal) backing.

A solid wall is required behind all mirrors. Maintenance access holes behind
mirrors are prohibited.

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Step By Step Guide To Build A Hotel

Sample Layout of a Guest Room Bed:

Sample layout of a Guest Room:

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Step By Step Guide To Build A Hotel

Guest Room Bathroom Design Guidelines

For minimum building width, bathrooms may be one behind the other between
rooms Luxury bathrooms or economy shower rooms may be against external
walls.

Adjacent pairs of rooms are arranged mirror image to share common vertical
ducts and isolate bathroom noise transmission.

Requirements: non-slip, drained surfaces; tiled walls; acoustic ceiling; mirror


over basin; screened, moisture-proof lighting; panel access to services;
controlled warmed air inflow/extraction; mixer valve and thermostat control of
hot water; shelf space, towel racks, toilet roll holder, coat hanger, electric
shaver point, lidded waste bin, tissue dispenser, toiletry tray/basket. In higher
grade hotels: telephone, music relay

Mirrors: A polished float glass mirror that is the full width of the lavatory
counter and 36" (91 cm) high should be provided or an appropriately sized
framed mirror is required.

Floors and Base: Non-slip 6" x 6" (15.24 cm x 15.24 cm) or larger ceramic floor
tile or stone with coordinating tile or stone wall base.

Vanities: Minimum length to be 4'-0"; vanity tops are to be man-made synthetic


cultured stone or natural stone with bull-nose edge or eased edge and matching
backsplash and side splash (3" high minimum). Vanity apron/skirt is to be 8"
height minimum and made with the same material as the vanity counter.

Electrical Outlets: All outlets in the guest bathroom must be conveniently


located and protected by a ground fault circuit interrupter (GFCI).

Bathtub: Minimum 5' with overflow outlet with pop-up stopper, cast iron, or
steel tub with sound insulating material, and factory finished no-slip bottom.

Tub and shower enclosure: Shall be finished with ceramic tile, natural stone,
manmade synthetic cultured stone, or two (2) coordinated soap dishes (without
handles) should be provided.

Balance bars: A balance bar(s) must be installed on an end wall to assist guests

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Step By Step Guide To Build A Hotel

with entering and exiting the bathtub. Balance bars must be securely anchored
to withstand 250 lbs. (114 kg) pull.

Toilet: Tank type with elongated bowl and matching seat and lid.

Hair Dryers: A wall-mounted electric hair dryer (minimum 1500 watts) is


required in each guest bathroom. Hair dryer is to be installed so when in a
storage position its electrical cord will hang past the countertop edge.

Accessories: Include a reserve roll toilet tissue holder, towel shelf and bar, robe
hook and recessed facial tissue dispenser; molded plastic facial tissue container is
acceptable.

Lighting: Adequate color-balanced lighting for grooming is required at the


vanity with appropriate general illumination for dressing. A decorative tube
light fixture above the mirror is acceptable. When a framed mirror is used,
decorative wall-mounted sconces are recommended. All fluorescent lamps are
to be color-balanced warm white.

Ventilation: Mechanical exhaust system is required and installed to maintain


total visual and acoustic privacy between adjoining bathrooms. Exhaust system
must be vented vertically through the roof.

Water Specifications: Guest bathroom must have hot (maximum 125°F in any
guest room) and cold water immediately available without significant
temperature or volume fluctuation.

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Step By Step Guide To Build A Hotel

Different Room Layouts

Layout One:

Step By Step Guide To Build A Hotel 111


Step By Step Guide To Build A Hotel

Layout Two:

Suite Room Layout:

Step By Step Guide To Build A Hotel 112


Step By Step Guide To Build A Hotel

Other Guest Room Layouts:

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Step By Step Guide To Build A Hotel

Swimming Pool Design Guidelines

The following standards apply to Swimming Pools:

Pool Deck Design: A hard surface deck that is 5'-0" clear in width must be
provided around the Perimeter of all pools.

Finishes: Decks must have a non-slip finish with a coefficient of friction no less
than 0.6 (wet or dry). Deck finish may be of ceramic or porcelain tile, a decorative
synthetic cement topping or a decoratively patterned and sealed finished concrete
deck surface.

Seating: An appropriately sized area for poolside seating must be included in the
Deck design. Coordinated chairs, tables and chaise lounges are required.
Furnishings may not intrude on the 5'-0" ft. wide clear deck space required around
the perimeter of each pool.

Lighting: Lighting of sufficient intensity to ensure visibility for night use is


required for all pool decks and must provide illumination. Interior fixtures must
coordinate with the décor of the room and should not be located directly over the
pool for ease of maintenance. Exterior fixtures must coordinate with exterior
design of the hotel.

Water: Water must be maintained in accordance with local code requirements and
standards. The minimum chlorine content of pool water must be at 1.0 part per
million, and the minimum bromine content of pool water must be at 2.0 part per
million. The PH level must be maintained between 7.2 and 7.8 unless more
stringent requirements are specified by local or state health officials.

Restrooms: Men and women’s public restrooms must be conveniently located near
the pool area and must comply with standards for public restrooms.

Landscaping: Outdoor pools require landscaping around the exterior perimeter of


the pool enclosure fence.

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Step By Step Guide To Build A Hotel

Swimming Pool Design Specifications

Outdoor - minimum size: Minimum 600 sq. ft. (61.0 m) water surface area is
required at hotels with less than 200 guest rooms, and 1,000 sq. ft. (92.9 m)
minimum at hotels with more than 200 guest rooms.

Depth: Maximum recommended depth is 5'-0" (1.5 m).

Underwater Lighting: Underwater lighting is required. Lighting must be of


sufficient intensity to ensure visibility for night use and to allow viewing the pool
bottom.

Swimming pools must be illuminated from dusk to dawn.

Drains: Two (2) drains are required in all swimming pools.

Float Lines: Float lines are required and must be installed at the 5'-0" (1.5 m)
depth line, or alternatively at 1'-0" (0.3 m) before the point where the swimming
pool slopes toward the deep end.

Ladders: Ladders are required at the deep ends of the swimming pool. Exposed
metal must be chrome-plated brass, bronze, or stainless steel.

Steps: Provide steps with handrail at the shallow end of pools. Handrails must be
Chrome-plated brass, bronze, or stainless steel.

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Step By Step Guide To Build A Hotel

Design Guidelines for Hotel Back of House Areas

Heating Ventilation & Air Conditioning (HVAC)

Heating and mechanical ventilation is required in all areas, including the laundry
and maintenance areas. Refrigerant cooling is required. All HVAC equipment and
ductwork must be concealed from view.

Service Corridors

Wall and corner guards recommended; sealed floors required.

Employee Facilities

Separate men’s and women’s lavatories and lockers and employee break room is
preferred. This area must be out of guest view. Employee facilities must be well-
maintained, ventilated, lighted, and clean.

Laundry/Housekeeping/Storage

House laundry and housekeeping facilities should be isolated from the guest room
portion of the hotel to minimize the impact of noise and housekeeping traffic
associated with laundry machines and hotel operations.

Facility must be designed to facilitate on-premises/off-premises laundry flow,


linen storage, housekeeping storage, and lost and found storage. Staff circulation
from the laundry to the guest rooms should be through back of house passages. No
smoking should be allowed in the laundry or linen storage areas.

Maintenance and Engineering Area

Space must be provided for routine maintenance of equipment, television repair,


furniture repair, and storage of spare equipment and attic stock. All maintenance
areas must be clean and well organized.

Space should also be allocated for technical items like: Generators, Boiler plant and
calorifiers, Pumps, Electrical Transformers, PABX, Water Storage and treatment, Air
Conditioning plant and coolers Swimming Pool Treatment plant.

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Step By Step Guide To Build A Hotel

Hotel Kitchen Design

The heart of every Restaurant is the kitchen. The quality of food and speed of
service depend on efficiency, hence Kitchen planning, design and layout must be
undertaken with due care and expert advice if necessary.

Ideally, kitchens should be planned according to the menu or Food Service


Concept of the Outlet. This will allow proper equipment selection, spacing,
determination of capacity and purchase accordingly. Today’s high rents and
construction costs dictate wise use of every square inch of space. Planners should
be knowledgeable about both cooking and space allocation.

The first step in kitchen planning is a flow chart, which allows eliminating
bottlenecks both for service and production.

During planning, the following criteria should be considered:

Smooth traffic flow

Increased efficiency

Acceptable sanitary conditions

Ideally, receiving, storage, preparation and cooking areas should be on the same
floor as the restaurant. In downtowns of large cities, land costs are exorbitant;
hence architects and kitchen planners build vertically to fully utilize every square
inch of space. While it is true that some restaurateurs think it unnecessary to plan
the kitchen with due care and detail, experienced operators are convinced that
every hour spent on planning pays back handsomely.

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Step By Step Guide To Build A Hotel

Sample Flow Chart for Kitchen Operation:

BACK DOCK

RECEIVING WASTE DISPOSAL

DRY STORAGE COLD STORAGE WAREWASHING

PREPREPARATION

FINAL PREPARATION SERVICE DINING

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Step By Step Guide To Build A Hotel

Information required for Planning Kitchen:

Before kitchen planning can begin, answers to various questions about catering
policy are needed. For example:

1. What types of Cuisine is offered?


2. How many Guests will be served?
3. When will these meals be required? Will the main meal be A M or P M - that
is, will it be a lunch or dinner service or day long and/or night long?
4. What will be the extent of beverage service requirements - that is how much
tea and coffee for lounge as well as restaurant will be required?
5. Is allowance to be made for special functions?
6. To what extent will "convenience" foods be used?
7. What area of floor space is available?
8. What is the position of windows, ventilation, drainage, water supply, and so
on?
9. What type of service is proposed – Informal or Fine Dining Service?

Area Required

Kitchens are sometimes designed in a reduced size in order to provide more space
and increased seating in the Restaurant. This reduction does not necessarily
increase a restaurant's trade; however, because cramped kitchens lead to delays
and other faults in service that discourage customers from returning. A reduction
in kitchen size must, therefore, be accompanied by plans to maintain (or even
increase) productivity while still presenting a satisfactory workplace for
employees.

Calculating in advance the kitchen area needed is difficult for many


reasons. Generally speaking, as the number of patrons increases, the kitchen area
needed per person tends to decrease; but information about numbers alone is not
sufficient. Knowledge of peak loads (based on experience or intelligent
forecasting) is essential. In addition, the nature of the establishment plays a role.

The dining room (including tables and passageways) at a coffee shop may have as
little as 0.93 square meters (10 square feet) of space per person, while a luxury
hotel restaurant may have 1.67 square meters (18 square feet) of space per person.
Some experts believe that kitchen space per customer should be about one-half
that of the dining room. Very small places serving less than fifty people may need
about 0.84 to 0.93 square meters (9 or 10 square feet) of kitchen space per person.

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Step By Step Guide To Build A Hotel

Of the total area of a kitchen, between 15% and 25% is likely to be required for
storage, according to the nature of the operation and the supplies it uses. The
remaining space goes to food preparation, cooking, and serving.

Calculating the various areas needed by a particular establishment does not


yield exact results, of course, because each establishment has unique needs and
limitations. The rules of thumb provided here are only rough estimates.
Architects and kitchen engineers must calculate space requirements based on each
operation's scope.

Sample Kitchen Layout:

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Step By Step Guide To Build A Hotel

Points should be considered in Kitchen Planning

Lighting

Every kitchen must be well illuminated to prevent accidents, increase efficiency,


facilitate quality control and prevent waste. Fluorescent light fixtures are advisable
for their efficiency and cool operating temperatures.

Ventilation

Ventilation is of great importance in any kitchen. It prevents odors from


penetrating the dining area and increase the well being of Chefs. This in turn
improves quality and efficiency.

A ventilation system consists of:

The collection device (canopy)


Vehicle to move the air (motor)

Canopies are equipped with filters, of which there are three types:

Wire mesh
Baffle
Liquid

(All filters must be thoroughly cleaned at regular intervals to reduce fire hazards,
as they collect grease)

The size of the canopy and motor depend on the size of the kitchen. Canopies
must overhang cooking equipment on both sides by at least 8” (20 cm) in most
jurisdictions.

Sprinkler systems

All kitchens and restaurants must have an appropriate sprinkler system.


There are two types:

Water releasing.
Carbon dioxide mixed with fire extinguishing chemicals.

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Step By Step Guide To Build A Hotel

Water releasing sprinkler systems are inappropriate for kitchens.


Carbon dioxide mixed with extinguishing chemicals type systems is
recommended.

Floor Coverings

Kitchen floors must be non-slip to prevent accidents. Tile coverings are prone to
cracking and warping due to constant moisture present. If tiles are used, cover
them with a non-slip coating. Continuous non-slip floor covering containing stone
chips is the most suitable. It can be applied quickly and inexpensively. They are
easy to clean and prevent insect infestation.

Wall coverings

Kitchen walls can be covered with tiles or durable high gloss finish paint. Tiles are
initially expensive, but are durable and easy to clean. High gloss finish paint is
more expensive in the long run and less sanitary.

After the above mentioned decisions are made, the planner can proceed to
selecting and specifying equipment:

Cooking equipment, brands, capacity requirements, and sources.


Stationary equipment i.e. mixers, bank saws, food processors.
Work table sizes, heights, finishes and locations.
Widths of aisles for traffic between stationary equipment.
Refrigeration units and freezers, types and sizes.

Storage areas’ size and shelving, for foodstuffs, china, cutlery and glassware
Dishwashing area equipment, location capacity Receiving area, location, layout,
size, equipment i.e. scale, running water, lighting, security Garbage disposal area,
location, size, and type .

Kitchen equipment

Kitchen equipment can be conveniently grouped into five categories; storage-,


preparation-, cooking-, accessory- and service equipment.

Planners are advised to study all equipment available, manufacturer, source, and
compatibility with local standards in force.

Storage equipment consists of industrial food-grade shelving. It may be wire or


solid. Wire shelving is appropriate for canned goods or boxes; solid shelving is
required in refrigerators and freezers. They are easy to clean. All shelving must be
arranged appropriately to facilitate adequate air circulation.

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Step By Step Guide To Build A Hotel

There are upright, chest, and walk-in freezers. Chest freezers preserve cold air but
utilize more floor space, whereas upright freezes use less floor space but allow cold
air to escape rapidly each time the door is opened.

Walk-in freezers are recommended for operations using considerable amounts of


frozen foods. Freezers can be purchased pre-fabricated, modular, or be custom -
made. In every walk-in installation, care should be taken to position the freezer to
open into a refrigerator in order to preserve at least part of the cold air, which
inevitably escapes each time the door is opened. (Cold air costs three times as
much as warm air)There are standard- or blast freezers for quick freezing of
vegetables or plated food. Cryogenic freezers use liquid nitrogen or carbon dioxide
and freeze fast.

Refrigerators

Refrigerators prevent bacterial growth and prolong the shelf life of perishable
foods. There are electricity or gas fuelled, reach-in, roll-in, drawer and walk-in
refrigerators. Electricity powered refrigerators are the most common.

Reach-in and walk-in refrigerators are readily available in a variety of sizes and
configurations. Walk-in refrigerators can be specified modular or custom made.
Drawer and roll-in refrigerators are practical and save labor but must be custom
manufactured and expensive.

All commercial refrigerators must be equipped with thermostats both inside and
out. Interiors of all must be easy to reach, clean, and well lit. Walk-in refrigerators
must have non-slip floors and equipped to open from inside and outside. All doors
must be airtight and equipped with self-closing mechanisms to minimize cold air
loss.

A well-designed compressor maintenance programme will help prolong usable


life. Wooden storage shelving is not recommended. Tempering refrigerators to re-
thermalize plated frozen food is practical in hospital and correctional institutions.

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Step By Step Guide To Build A Hotel

Preparation equipment

Constitute all equipment employed in food preparation (chopping, dicing, cubing,


peeling, slicing, mixing, processing). They speed up all these functions, reduce
labor, facilitate quality control and promote consistency.

Specify sturdy brands, backed up by a good supply of spare parts, warranties,


guarantees and service. Foreign suppliers should be specified only if local
manufacturers are inadequate or do not exist.

Cooking equipment.

All equipment used in cooking fall under this category, and may be fuelled by
electricity, propane, natural gas, oil, wood, or steam .

The following cooking equipment is standard:

Ranges: -hot top


- open burners
Deep fryers: electric or gas
Broilers: ceramic brickets
radiant
infra red
open
Salamanders: (top heat)
electric
infrared
gas

Steam fuelled equipment

Steam jacketed kettles- Floor, counter top, tilting or non-tilting, with or without
spout in various sizes are available.

Pressure steamers are suitable for quantity batch cooking. Combi-ovens combine
steaming and roasting, and are popular due to their space saving features.

Ovens – a wide range of ovens is available. They can be under ranges,


freestanding, electric or gas, steam injected or not. Convection ovens are practical
for roasting and rotate hot air speeding up cooking time. Conveyor type ovens are

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Step By Step Guide To Build A Hotel

appropriate in high volume pizza operations or in very busy bakeries. Micro wave
ovens are used mostly for re-thermalizing.

Griddles – consist of a stainless steel non-stick surface fuelled either by gas or


electricity, equipped with appropriate grooves and grease collectors. They are
versatile and very much in demand in short order kitchens and cafeterias.

Tilting Frying Pans- may be gas or electric fuelled. They are practical in large
banquet halls or hotel banquet kitchens catering to huge banquets. Cooking
equipment is rated either in units per hour or BTU’s (British thermal unit) One
British Thermal Unit is the amount of energy required to raise the temperature of
one pound of water by one degree Fahrenheit. The rating is important to calculate
power requirements.

Accessories – Electronic thermostats, energy load levelers (reduce peak electricity


demand) and automatic shut off switches fall under this category. Service
equipment – helps keep prepared foods hot. Steam tables, flambé carts, gueridons,
coffee machines, small wares (pots, pans, whips, scoops) self leveling plate
dispensers, dishwashers, compactors, filtering devices fall into this category.

Once the equipment selection is completed, and the layout determined, the
planner must contact utilities and advise them to ensure timely hook up to main
supply lines.

Floor space dedicated to kettles must be furnished with splashguards and


drainage.

There is a wide range of manufacturers of kitchen equipment and the planner


must carefully specify before making purchase decisions. Equipment is sold by
dealers, distributors, jobbers, manufacturer’s agents, or directly by the
manufacturer pending on the size of the order or the size.

Dealers quote F O B (Free On Board) prices and do not include installation. Both
transportation and installation have to be arranged by the purchaser or may be
arranged by the dealer for an additional charge. If cooking or service equipment is
purchased abroad, it is important to check specification and standards to ensure
that they comply with local rules and regulations

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Step By Step Guide To Build A Hotel

Food and Beverage Outlet Design

To fully analyze the feasibility of a proposed Food and Beverage Outlets, the
“concept” of the Food and Beverage Outlet must be defined. The first step is
writing a general concept statement which should include some of the following
components:

• What will be the theme for the menu?


• What will be the level or style of the restaurant? Quick-service, mid-scale, or
upscale?
• What will be the price structure of the menu?
• Will the menu have daily specials?
• Are there plans to match the decor of the restaurant to the items on the menu?
• Will there be entertainment or music?

After the Outlet concept has been determined, the components should be defined
in writing. The concept statement is more of a general description than a detailed
plan. A description of the type of menu being planned should list the types and
number of items for the following categories: breakfast, lunch, sandwiches,
appetizers, soups, salads, entrees, side dishes, beverages, and desserts.

Describe the planned atmosphere. The atmosphere or ambiance, along with the
menu, should fit the type of Outlet (quick service, mid-scale, or upscale)
determined by the market study.

Customers will evaluate the atmosphere of the Outlet by the way it makes them
“feel.” The atmosphere during the day may differ from the evening. Also, the
atmosphere may vary by section of the Outlet.

Consider the following factors in creating a desired atmosphere:

• Formal or informal
• Soft lighting or bright
• Quiet or loud
• Cozy or open
• Romantic or social
• Singles or family
• Leisurely or busy
• Comfortable or functional

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Step By Step Guide To Build A Hotel

The process of creating the concept for the Outlet should involve the assessment
of the information gathered during the market research discussed earlier. The
research reflects how the market has performed in the past and speculates about
the future. Both are based on the primary and secondary information gathered.
Basing the concept of a Outlet on the market study does not always guarantee
success, however. The concept may have to be adjusted after the Outlet is open.

Two additional concept components must be considered: size of the Outlet and
operating criteria. Size of the Outlet may be predetermined by size of the site. A
general guideline in estimating the number of seats is 12 square feet, depending on
local code, to 18 plus feet per seat, for spacious dining. The remaining space is
termed the “back of the house” and is used for food preparation, storage, dish
washing, and offices. Finally, the days and hours of operation are listed in the
concept statement. Decisions should be based on practices in other Outlets in the
market, rather than on personal preferences.

Well-planned interior design contributes to the success - and the profits - of any
dining establishment. It begins with market research, continues with
understanding market trends and concludes with strategic execution.

Facility Design
The possible design and layout of the facility must also be considered. The first
impression received is from the customer service area, including the waiting area,
restrooms, coatroom, hostess stand, and cashier’s station. The design of the dining
space is also important since it represents approximately 50 to 70 percent of the
facility. The dining space not only uses a majority of floor space, it is also the
center of attention and consumes the bulk of the money for design and decorating.
The concept of the restaurant will help determine the layout of tables and booths.
Customers visiting table service restaurants arrive in pairs 40 to 50 percent of the
time, 30 percent are alone or in groups of three, only 20 percent visit in groups of
four or more.

Although most people seem to prefer the comfort of a booth, small tables for two
customers can be pushed together for larger groups. To accommodate different
groups of customers, place fixed booths around outer walls, allowing flexibility in
the inner floor space. Place tables with enough space to assure comfortable seating
and enough of a walkway for wait staff to move among tables.

The remaining space is for food preparation, storage, and office area. The food
preparation area should provide an efficient movement of food from the kitchen to
the dining room. The space should be arranged with everything only a few steps

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Step By Step Guide To Build A Hotel

away from the Chef, and should also allow two or more Chefs to work side by side
if warranted. The space needed for prep and steam tables, oven, grill and stove top,
and small refrigerator and freezer, along with the exhaust fans needed for
ventilation must be adequate. Larger refrigerators or walk-in coolers are used to
store perishable items.

A separate area is usually reserved for dish washing and trash. This area should be
separate from that of the Chefs and servers.

After the cost of the facility, the next largest start-up expense is equipment.
Commercial food service dealers can help select the necessary equipment, for the
type of restaurant chosen. It is wise to research the available options and take the
necessary time to obtain competitive quotes. The potential cost savings of
automatic or energy efficient and self-cleaning units should be considered.

Important factors to consider when designing a restaurant include color and light,
textures and patterns, space and layout, and style or type of restaurant.

Food Service Space and Layout


First impressions are important. This is particularly true when customers enter a
Dining Outlet. So be sure that there is adequate space available in the area where
customers wait to be seated. While the customer waiting area does not produce
direct income, this space can allow customers to wait in comfortable surroundings.

Frequently a bar or cocktail lounge can serve as customer waiting space. Such an
arrangement does offer additional income potential.

The number of diners that can be accommodated in a given space is always a


primary consideration. Whether to use "two-top" or "four-top", round or
rectangular, tables, as well as the type and kind of chairs, must be decided for each
individual space and type of Outlet.

Plan on several table-chair configurations to accommodate different size groups as


well as different types of dining, for example, lunch vs. dinner. Project and plan
ways of adapting and combining chairs and tables as seating needs change.
Otherwise, initial traffic patterns may be altered in ways that inhibit or even
prohibit customer movement as well as efficient service. Regardless of meal or
seating arrangements, retain easy access to and egress from the kitchen and wait
stations.

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Step By Step Guide To Build A Hotel

The type of Outlet will help determine distances and spaces between tables, chairs,
and diners, but there are some general observations and "rules" that should be
remembered while planning a Food and Beverage Outlet:

Chairs: Armchairs take up more space than chairs without arms. Avoid chairs
with legs that protrude beyond the chair seats; chair legs should be fairly vertical
to lessen the chance of tripping over them. Be especially selective with stackable
chairs. Chairs should be sturdy, but not so heavy that they cannot be shifted easily.

Tables: should be solid and untippable. Although many restaurant tables have
pedestal bases (one center support), these must be heavily weighted for stability.

Allow a minimum of 24 inches for each seated diner; up to 30 inches is better.


Also allow about 16 to 18 inches in front of each diner for the place setting. Too
narrow or too shallow tables can cause unnecessary accidents and crowded
conditions.

Space between tables: Minimum space around each table varies. Allow a
minimum of 24 inches behind a seated guest, or 36 to 42 inches between the edge
of the table and the wall or other physical obstruction to permit limited access and
circulation. A space of 48 inches between the table and the wall is necessary if
there is more than minimal movement behind the seated diner. Between diners
seated at adjacent tables allow at least 24 inches. Wider aisles should be established
for major service personnel movement; allow at least 50 to 54 inches. A minimum
of 72 inches is needed if an aisle is used by many diners, such as one approaching a
salad or buffet table. Larger spaces will usually be desired in "tablecloth dining"
establishments.

Chair seat/table top ratio is very important. Chair seats vary from 15 to 18 inches
in height and dining tables are from 26 to 30 inches high. Use lower table heights
for lower chair seats. Measure when seated in upholstered chairs to allow for
spring depression. It is better to have tables a little too low than too high for diner
comfort. However, be sure the chair arms and the person's fingers can be
accommodated under the table apron and that there is enough room for diners'
legs.

Handicap access is required. Even the smallest differences in floor level must be
ramped for wheelchair access. This includes entrances, the dining area, restrooms,
and emergency exits. If a diner is confined to a wheelchair, or uses crutches or a
walker, space at and approaching the table must be larger. Space requirements for
disabled guests vary but here are a few typical measurements:

Wheelchairs are 25 inches wide and 42 inches deep. At a table a wheelchair will

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Step By Step Guide To Build A Hotel

extend back about 30 inches (the back of the chair of the average diner is about 18
to 20 inches from the table edge). A complete turnaround requires 63 inches.

Type of clientele: The type and age of your diners will also affect spatial
arrangements in a food service establishment. Older diners will probably require
somewhat wider spaces to navigate between tables as they are frequently not quite
as agile as younger individuals and cannot maneuver as easily in narrow spaces.
They also find it more difficult to slide into booths or to move heavy chairs. Chair
seats should be slightly higher and firmer. Brighter light levels will also be
appreciated.

Business Customers will appreciate more space at the table and between tables.
Since diners tend to move their chairs back as a meal continues, longer than
average meals will cause spaces between tables to be reduced, possibly making
service difficult. Sound and visual privacy is also a consideration that should not
be ignored. If serious and private discussions are frequently held, sound-deadening
surfaces or background music ("white sound") should be installed.

Some diners wish to be seen; therefore, they prefer the "power seats". The most
important power seats are those with backs to the wall so the diner can observe
who enters, leaves, etc. Their companions, sitting with backs to the rest of the
dining area, are at a disadvantage unless there is a mirrored back wall.

Restrooms: Adequate space should be provided for easily accessible restrooms.


Restrooms should be well lighted, well ventilated, and scrupulously clean.
Handicap safety features are a must. Large mirrors, shelves for purses, and hooks
for coats should be available. If a restroom is used by more than one person at a
time, privacy partitions with closable doors are needed.

When designing a restaurant, the needs of the end user are at the forefront of the
design process. What kind of environment do you want the diner to experience?
Perhaps it's a soothing atmosphere with gentle water features, an upbeat, sleek
setting of a contemporary restaurant or a flavorful ambiance of a desert-landscaped
southwest café - the options are as endless as the industry's collective creativity,
but each location shares a common concern: acoustics. Depending on the design
concept, a certain noise level could be desirable. In reality, you can create a
vivacious, active atmosphere using acoustic products that meet your aesthetic
needs without putting the end users at risk.

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Step By Step Guide To Build A Hotel

Sample Restaurant Layouts:

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Step By Step Guide To Build A Hotel

Step By Step Guide To Build A Hotel 132


Step By Step Guide To Build A Hotel

Sample Under Bar Counter:

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Step By Step Guide To Build A Hotel

Color and Light

Of all the senses, sight is the most important, even in a restaurant, where a major
goal is for the customer to taste and smell the food served. Eighty percent or more
of all impressions are acquired through one's eyes. We are greatly affected by the
visual appearance of ourselves and others, of our surroundings, and of our food.
The old food service saying that "people eat with their eyes" continues to be true.

The appearance of food on a plate can be significantly altered by light and color.
So can the appearance of the restaurant. Indeed, the light and color in a restaurant
can even make one's dinner companion look different.

Consequently, it is very important to create a restaurant atmosphere that enhances


the color and appearance of both the food and the diners.

Types of light sources.

A light source that is color- balanced is generally preferred. However, there are
certain settings where the color balance can vary somewhat to add interest or
warmth to a restaurant's interior space.

For a warm effect, use warm white fluorescent or incandescent light sources, and
introduce pinks, reds, peaches, and corals in the tablecloths, wall coverings,
and other decorations to provide direct and reflected light that has an abundance
of red/orange rays, the color of skin tone. Customer and service personnel
appearance will be improved. There are many foods that fall in the red/orange
range meats, many fruits, non-green vegetables- and their color will also be
enhanced.

The more common cool white fluorescent light sources, which contain an
abundance of green and blue light rays, create a cool effect. While the light from
cool white fluorescents does not enhance skin tones or foods in the red/ orange
range, it does brighten the color of green vegetables, salads, and blue and green
furnishings.

Interiors illuminated with cool white fluorescent lighting will appear much colder
to customers and employees than an interior lighted with warm white fluorescent
or incandescent light sources.

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Step By Step Guide To Build A Hotel

Textures and Patterns for Food Service Outlet Interiors:

Surface textures (rough and/or smooth) and patterns (printed surface designs) are
often after thoughts when designing a restaurant or other food service facility.
However, they can serve the owner/manager and the customer well or poorly.

Textures and patterns help create a mood. If all surfaces are hard and smooth,
regardless of the colors used, the effect will often be cold and uninviting,
especially if the area is brightly lit. A restaurant must not only be clean-it must
look clean. Textures and patterns can significantly affect visual cleanliness--the
impression of cleanliness that your customers see.

Patterns: A patterned surface can camouflage objects upon it. Thus richly
patterned china can detract from the image of the food. Tablecloths and wall and
floor coverings, on the other hand, may benefit from a patterned surface.
Patterned floor coverings, especially, will hide accidents, stains and spills, but
should not replace proper maintenance. For safety, avoid patterned hard and soft
floor coverings that appear three-dimensional or when the pattern may conceal
steps and other surface irregularities.

Texture of floors: A rough or heavily textured surface such as carpet, regardless of


its pattern, will be harder to clean than a smooth surface such as quarry tile, vinyl,
wood, or smooth concrete, but it will not show soil as much. A rough surface will
also appear darker than a smooth one, because of the shades and shadows of the
texture.

A smooth-surfaced floor may become slick and cause accidents, especially if water
or grease is allowed to remain on it. Some non-ceramic tiles, such as rubber or
synthetic plastic, may be adversely affected by grease tracked in from the kitchen,
so, when selecting hard surface floor coverings, be particularly careful to select
materials that grease and oils will not deteriorate.

Carpeting should not have thick padding under it in a restaurant setting. Not only
will a thick pad absorb spilled liquids, but walking and moving chairs will be
more difficult, for both the diners and the service personnel.

Effects of texture on sound: When considering texture, consider also the inherent
sound-deadening and reflective qualities of surfaces. Hard, smooth surfaces reflect
sounds; rough and soft ones absorb them. A softer surface will reduce the noise
and breakage of dropped dishes and glassware but will make it harder to cleanup
the breakage. Perhaps your restaurant is too noisy (or too quiet). Changing some of
the surface textures can alter sound levels.

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Step By Step Guide To Build A Hotel

Laundry Design Guidelines

The design of a Hotel Laundry is governed by the size of the space available.

Load factors should be kept in mind to calculate the number of washers, dryers
and other equipment required to operate in a laundry. This again depends on the
number of rooms in a hotel and average occupancy percentage and the type of
Hotel.

The position and availability of the services, such as drainage, power, water
supply, light or windows, doorways, and outside walls for the provision of
ventilation both into the room and out for the tumble dryer vents should be kept
in mind while planning Laundry.

Once the space has been assessed for the above and the number and type of
machines required to complete the task with some spare capacity allowed for
breakdowns we can then start putting pencil to paper.

The flow of work is the important first principle in Laundry-Room-Design.

Where the dirty laundry enters the room is where the sorting area should be. It
should be placed as close as possible to the washing machines and the entrance.

Avoid cross contamination with clean laundry for infection control.

Ensure that the journey from the sorting area into the washing machines is as
short a journey as possible and away from clean laundry.

Next task is to move clean wet laundry out of the washing machines and into the
dryers.

There are two schools of thought here; a tumble dryer placed between each
washing machine is one method. Row of washing machines then a row of tumble
dryers opposite if possible or close by to reduce the possibility of cross
contamination with the dirty laundry coming into the room.

The larger the wash load in one machine the greater the need for mechanical
handling, carts, baskets, or overhead rails.

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Step By Step Guide To Build A Hotel

Finishing, Folding & Storage

Then to the finishing area where Ironing takes place, followed by folding and
storage, preferably in another room or airing cupboard.

Some shelving and storage situated in the laundry room is sometimes a good idea.

Important Points to Keep in Mind while designing Laundry.

Water supply: will you need a separate tank at the top of the building to supply a
dedicated supply to the laundry room with no cross contamination of the mains
supply?

Electricity and power: in general, is there enough available close to the planned
laundry room, what is the total required and is there an alternative power supply?

For large laundry systems why not think about high pressure steam generation,
using various boilers. This steam can be used for direct injection into the washing
machines to heat the water during the wash, heat the tumble dryers, and heat the
callender Machine or roller iron bed.

This would mean that only a reasonable amount of three phase power to turn the
motors would be required for all the machines.

Local water byelaws may insist that the laundry is supplied via a separate water
tank storage system, with automatic pumps to ensure the pressure is adequate to
clear the soap hoppers of a number of machines filling at the same time. This
system also helps isolate the mains water supply from the soap and dirty water
within the machine with no possibility of cross contamination.

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Step By Step Guide To Build A Hotel

Graphics and Signage for Hotels

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Step By Step Guide To Build A Hotel

Hotel Construction and Project Management

Hotel Construction
Construction represents the physical manifestation of all the hard work which has
occurred in planning and organizing the development project. The construction
process is a complex one which can be affected by a variety of factors
affecting handover, such as quality, budget and operational capability. This process
must, therefore, be carefully managed and understood to avoid potential problems.

Hotel Construction Process is outlined below:

• Selecting General Contractor


• Selecting Sub Contractors
• Obtaining Construction Bids
• Construction Contract Agreement
• The Construction Schedule
• Progress Payments
• Contractor Insurance
• Final Payment and Handover

In general, the building contractor’s organization must generally be divided


between office and site activities. Offices will often be concerned with
estimating/tendering, site planning, construction process and planning, quantity
surveying, cost control and bulk
purchasing of materials and hire of plant.

The work on site will be under the control of a contracts or construction


manager/director, who may coordinate many other projects on different sites. The
resident or direct contact on a
particular site will be the site or project manager, who will be responsible for the
building contractor’s own employees and subcontractors.

Most medium- to large-sized building contractors also provide for both the design
and construction of a building project. This combines the services of the design
team with those of general contracting. In effect the building contractor provides a
‘package deal’ in which he is responsible for all the major decisions on design and
technical matters, prepares plans and specifications, obtains approvals and carries
out the construction. The building contractor most often employs independent
design practices for a fee, also ‘contractor’ design subcontractors, together with

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Step By Step Guide To Build A Hotel

building control and planning specialists. The role of the design manager or design
and build manager has become more prominent in this type of project and more
often it is this individual who now provides the main or single point of contact,
both technically and commercially, with the client and appointed agents.

Selecting a General Contractor

• Check References from previous Clients: whether the contractor finished


on time, stayed on budget and adhered to the construction contract.
• Is he/she a member of the relevant association or institute or do they have
the required license to perform the task?
• How many years have they been in the business?
• Is a physical inspection of their business premises and previous work
possible and do they have references from previous clients?
• Find out what the legal requirements are in your state or country
(especially important for the owner-builder), and ask for original proof of
all risks insurance cover, 3rd party liability, worker's compensation,
insurance for subcontractors, license bonds etc. and verify their validity
with the issuing organization.

The Contract

Your General Contractor Agreement can best protect your interests if you tailor it
to your unique requirements.

If however, the contractor insists on supplying the construction agreement, it does


not mean you have to accept it in its entirety. Many clauses can be negotiated,
deleted or altered. Strike any clauses that are not in your best interests. Clauses
that you may wish to add should be in the form of an addendum to the document.
If you are not comfortable with the language, meaning or possible interpretations
of any part of the contractor agreement, have it reviewed by a lawyer.

Examples of clauses to delete:

"The owner agrees to pay any increases in labor or material costs which
may come into effect after signature of the agreement"

"Should any of the specified materials not be available for any reason the general
contractor reserves the right to substitute with similar materials?"

Your general contractor agreement must cover:

The scope of work (which will be detailed in final drawings and specifications)
and which will form an integral part of the general contractor agreement. It

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Step By Step Guide To Build A Hotel

should also clearly state which part of the work is not covered by the general
contractor e.g. they might fit window frames, but will not be responsible for the
glazing.

Any variation orders which may occur during the project term, not covered in the
initial scope of work.

The payment schedule and whether monies are paid by the owner or by a finance
institution on his behalf.

The dates for commencement and completion.

Details of all insurance by all parties.

Warranty on materials and workmanship.

Ownership of materials.

Security.

Mediation, arbitration and jurisdiction. Having disputes decided by arbitration is


much more cost effective than going to court. The general contractor agreement
provided here makes provision for arbitration as well as the right to go to court.
Discuss the matter beforehand and reach a mutual agreement on which course of
action will be followed.

Construction Bids

The construction bids supplied by contractors will assist you in making your final
choice of contractor.

Draw up a detailed list of work to be done and give this to your pre-qualified
general contractors or sub-contractors to price. Specify the materials to be used
and include brand names and model numbers if applicable - this way you can
compare bids on an equal basis.

If you intend supplying some of the items yourself, be sure to list them under a
heading: Items not required. It just always seems to not alter the price by much
when deleting items, as opposed to when adding items.

Construction Cost Estimation can assist you to determine to a large extent


whether you'll be able to afford the building according to your drawings. It can

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Step By Step Guide To Build A Hotel

also provide you with a benchmark against which you can evaluate your
construction bids.

Ask for a detailed breakdown of costs and have a close look if the construction
bids include an allowance for the contractor for items not yet selected. Ask the
contractor to clarify and detail these items. Although some negotiation is
acceptable and expected, you should allow the contractor his profits. A good way
to do this may be to negotiate price and then offer a performance bonus up to the
original quote if the work is performed ahead of construction schedule and to
specification. Although budget always plays a role, the cheapest bidder may not be
the most cost-effective in the long run.

Ask them to detail the required deposits and how the progress payments will be
scheduled.

Ask how many workers are employed by the general contractor and how many
projects they are currently working on. They may boast about the number of
projects, which may well be a warning signal. They may commit to your job, start
the project, only to disappear for a period due to over commitment. You are then
reluctant to start the process all over, but if you plan for this contingency with a
penalty clause in your general Contractor Agreement, they may be wary and not
make promises they can't keep.

Have your General Contractor Agreement ready before you accept the
construction bids and award any projects.

The Construction Programme


A well-prepared programme is essential to every construction project. Many
activities have to be carefully defined and given a time scale, and it is necessary
not only to marshal and list the information but also to display it visually in terms
of the contract’s objectives and the calendar. The working sequences and the
relationships between individual activities must be clearly conveyed in this visual
presentation.

Programmes must provide the information necessary for management


to carry out its functions in:

• Establishing the suitable timing of information requirements


• Forecasting and monitoring cash flow
• Forecasting labour and staff requirements
• Scheduling material supplies
• Coordinating the activities of subcontractors and statutory
undertakers

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Step By Step Guide To Build A Hotel

• Measuring and controlling performance


• Assessing the effect of variations and change
• Reviewing assumptions
• Costing (and bonusing or performance-related pay).

Guest Room and Bathroom Responsibility Matrix

Abbreviations

Owner O
Franchisor F
Project Manager PM
Architect A
Interior Designer I
Kitchen Consultant K
Laundry Consultant L
Graphics Consultant G
Audio Visual AV
Acoustical AC
Purchasing Agent PA
General Contractor C
Landscaping L
Mechanical Electrical Lighting MEL
Consultant

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Step By Step Guide To Build A Hotel

No Item Cost Design Document Procure Install


Estimate Planning
Guest Rooms

1 Artwork
2 Ceilings
3 Doors
4 Drapery
5 Electrical C A/L A/L C C
6 Floor
7 Furniture
8 Graphics
9 Life Safety
Communication System
10 Lighting
11 Linen
12 Mechanical
13 Smoke Detector
14 Smoke Detector
15 Telephones
16 Television
17 Wall Coverings
Bathrooms
1 Bath Linen
2 Ceiling
3 Electrical
4 Exhaust
5 Flooring
6 Lighting
7 Mechanical
8 Mirrors
9 Shower Curtain
10 Shower Head
11 Vanity Millwork
12 Wall Coverings

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Step By Step Guide To Build A Hotel

Construction Schedule
The construction schedule will establish a start date, a project duration period
with important milestones and a completion date which must be attached to or
included in the contractor agreement.

This will form the basis for progress payments as well as penalties to the
contractor. This document should be as detailed as possible.

Should the client be supplying any materials, the quantities and timing should be
clearly indicated on the program. Failure to supply on time will result in delays,
extending the program duration and therefore incurring additional costs by the
contractor, which he may add to the owners account.

Any delays to the program caused by extreme weather can not be charged for by
the contractor, but neither can he be penalized for being late. Get a written
agreement for Contract Extension, signed by both parties, to avoid disputes.

Delay to the program caused by circumstances beyond the control of the


contractor (such as when the owner fails to supply material on time) may be
charged for by the contractor and the cost of their standing time must be
negotiated prior to commencement of the work.

Delay to the schedule caused by the contractor would normally result in penalties
to them i.e. a reduction in price. This can be calculated at a percentage per day or
per week and must be negotiated before the start of the contract and specified in
your general contractor agreement.

When drawing up the construction schedule, the following must be clearly


established:

• Working days and public holidays.


• Daily hours of work and overtime.
• Builder's holidays during the Christmas period.
• Minimum number of workmen on site.
• Remuneration periods i.e. weekly, fortnightly or monthly.
• Minimum qualifications of the Supervisory Staff on Site.

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Step By Step Guide To Build A Hotel

Sample Hotel Project and Construction Schedule Chart:

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Step By Step Guide To Build A Hotel

Subcontract procurement Schedule


This schedule gives the site team a programme with which to place subcontract
orders, providing a control framework for design information production in
accordance with the construction programme.

The building contractor will determine how the construction activities will be
divided into subcontractor trade packages.

The ‘start-on-site date’ will be taken from the construction programme with the
‘subcontractor lead-in (weeks)’ period allowing for all lead-in time requirements
including:

• Drawings and approval


• Manufacture
• Delivery periods
• Integration with other trades.

On design and build contracts the ‘lead-in’ time needs special consideration, with
particular consideration being given to the overall design. The ‘latest enquiry date’
is derived from subcontracting the lead-in and ‘tender period’, in weeks, from the
‘start-on-site date’. This ‘latest enquiry date’, being the date information is
required from the design team.

Material purchasing

The preparation of ‘material schedules’ is similar in principle to that of preparing


the ‘subcontractor procurement schedule’. However, with more and more
subcontractors now providing a complete service (providing labour, plant and
materials) the volume of material purchasing by the building contractor has
somewhat diminished. Those subcontract trades who, in the main, provide only
labour and plant, not materials, are usually limited to the following:

• Ground workers
• Bricklayers
• Carpentry and joinery.

Although joinery, especially in building hotels, is now subcontracted to specialized


labour, plant and material subcontract joiners, or ‘fitting-out’ subcontractors.
Again, this schedule gives the site team a programme with which to place orders
(this time purchase orders) providing a control framework for design information

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Step By Step Guide To Build A Hotel

production, especially written specifications of materials, in accordance with the


construction programme.

The ‘required on-site date’ will effectively be the ‘start-on-site date’, taken from
the construction programme, with the ‘delivery period (weeks)’ being the period
in which the supplier needs to procure and deliver the materials from stock or
from works. The ‘latest requisition date’ is a reminder for the site team to compile
their ‘materials indent’ or ‘material requisition’ detailing what materials and
quantity they require. The site team will use the ‘materials schedule’ to establish
priorities for the provision of these indents with due consideration to extended
delivery periods and pending increased cost dates.

Plant and plant hire

As with material purchasing, the volume of purchasing and/or hiring plant has
diminished, with more and more subcontractors providing a service which
includes labour and plant. The site and/or project manager and quantity surveyor
will examine all plant and transport requirements for the project and establish
whether a case can be made for purchasing rather than hiring, taking into account
the services normally provided by plant hirers (for example servicing and
maintenance) and submit this case as a course of action to the contracts
manager/director or plant manager for a decision – similarly for plant which
cannot be hired.

The site team will initiate the hire of mechanical and non mechanical plant for
their project via a ‘plant hire order,’ with the conditions of hire of mechanical
plant being very different to that of non-mechanical plant. All plant on-site is
scheduled, with details including the type of plant, owner, number and to whom it
was issued being recorded, and reconciled weekly, against the tender/budget
allocation. With the exception of tower cranes, on most large, or even medium-
sized building projects, the only plant a building contractor would use, would be
associated with the site set-up and the preliminaries element of the project, such as
generators for lighting and power, road sweepers and small tools.

Site Preparation

Prior to commencement, the following must be established:

Site access, workers' parking and extent of the site.

Ablutions and or canteen facilities for the remodeling or building contractor and
his workers.

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Step By Step Guide To Build A Hotel

Local regulations often prohibit or limit how many personnel can live on the site.

The physical location of incoming material stockpiles and rubbish piles.

The position of telephone lines, power lines, water and sewage pipes, drains etc.
must be put in writing (in your free contractor agreement) and the responsibility
for any of these during construction must be clearly assigned.

The contractor is responsible for clearing the site prior to completion.

Progress review

Progress reviews are applied pre-contract, as a ‘start-up’ meeting, during the


contract, as monthly or fortnightly progress meetings, and post-contract, as an
‘end-of-contract de-brief’ meeting. The following addresses progress meetings held
during the contract.

These meetings ensure that cost, progress and quality are reviewed at regular
intervals (usually monthly and sometimes fortnightly) and that reports and
monitors are produced by the site team for review by senior management.

Typical contract review meeting agenda

1 Programme and progress


• Site manager’s report
• Marked-up programme

2 Information requirements
• Drawing and information required schedule
• Drawing and bending schedule registers
• RFI (request for information) index

3 Variations
• CVI (confirmation of verbal instruction) index
• Contract instructions (received from the client) index
• Day works

4 Procurement and hire


• Subcontractors procurement schedule
• Materials schedule
• Plant

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Step By Step Guide To Build A Hotel

5 Performance/problems
• Subcontractors
• Suppliers
• Direct labour

6 Health and safety


• Accidents
• Audit Report(s) and non-conformity level
• Health & Safety Executive visits
• Problems

7 Environmental
• Incidents
• Risk assessment compliance/non-conformity level
• Problems

8 Quality/tidiness
• Inspection and test record
• NCR (non-conformance report) registers
• CAR (corrective action report) registers
• Audit report(s)

9 Temporary works
• Temporary works register
• Works complete/pending

10 Client Relationship and Future Opportunities

11 Site administration and management systems

12 Finance
• Financial report
• CVR (cost, value, reconciliation)
• Forecast
• Payments

13 Any other business

This thorough review will allow both the site team and senior management to
assess planning and progress in all aspects of the project, time, quality and cost,
together with actual and/or possible delays. Recovery plans where necessary can
be discussed and approved quickly, detailing the effects of any decisions made or
actions taken.

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Step By Step Guide To Build A Hotel

The contract review is a powerful tool, allowing the site team to report on project
specific issues, with the senior management team being able to make decisions and
take actions on a company wide basis.

Contract Extension
You may need a contract extension agreement because almost every building or
remodeling project will take longer than anticipated.

The contractor and owner should firstly be realistic when drawing up the
construction schedule. They should agree on an allowance for bad weather days
and specify that in the schedule.

For the contractor it will be especially important to get any extension in writing,
lest he be held liable for penalties. The free contractor agreement makes provision
for deadline extension if done so in writing and signed by the owner.

The contract extension form can be adapted to cover agreements between


contractor and subcontractor or employer and independent contractor.

Progress Payments
You can stay within your budget if you manage your progress payments to your
contractor carefully and it will ensure the building schedule and building quality
is to your satisfaction.

Substantial upfront payments should never be made. At most, upfront payments


must be limited to the value of the materials delivered to the work site.

Construction payments can be made at pre-determined stages but should only


cover materials and work supplied, to the extent that neither the developer nor
contractor is at a big disadvantage. Payments should be made in accordance with
the bill of quantities and the construction schedule so that both parties are clear as
to what has or has not been paid for.

Retention monies should be withheld and can be from 5% to 20% of the contract
value - held from 3 months to 1 year, dependent on the type of works.

Get receipts or an unconditional waiver and lien release (that indicate the
contractor, sub-contractors and suppliers have been paid for work and materials)
at every progress payment and prior to the final payment. This is very important
and protects you against any mechanic's liens or other claims being filed against

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Step By Step Guide To Build A Hotel

the property which may result in your having to pay twice. Check with your local
authorities on the applicable laws.

If progress payments are for a major phase of the work it should not be paid until
the work has passed all inspections needed e.g. prior to pouring concrete
foundations, the applicable building department has to do an inspection and
signing off. By the same token your final payment should only be made after you
received a final approval or clearance document from the relevant governmental
building department.

Any operating manuals or maintenance instructions should be handed to you prior


to final payment.

Final payment must be withheld until all items on your Punch List /Snag list have
been addressed. Agree on a reasonable time with the contractor for this to be
carried out so as to avoid frustration and disputes.

Most importantly: Get all final lien waivers and a signed copy of the final invoice
stating that the contract has been paid in full.

The contractor agreement stipulates the manner in which progress payments will
be made.

Contractor Insurance

Before awarding a project to a contractor, the developer must verify that the
contractor is adequately insured. The contractor must supply proof that he is
current with Workman's Compensation - which covers injuries to the contractor
and employees whilst working on your project - as well as General / Personal
liability which insures your property.

Site security is normally the responsibility of the contractor, but it again depends
on the Contract agreement if it’s the responsibility of the developer or the
Contractor.

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Step By Step Guide To Build A Hotel

Hotel Construction checklist

Construction permit
Construction budget control
Contract award procedure
Building costs allocation plan
Description of performance of duty or architects
Design and construction punch list
Design review list
Detail design with architect
Detailed cost as per tender verses budget
Ff & E listing
Handover date/handover procedure
Presentation of interior designs to owner(s)
Presentation of preliminary Project with cost estimate
Project plan for building project
Punch listing
Space allocation plan

Contracts / Agreements During Hotel Development

Letter of intent
Application
Feasibility and design study
Pre-opening services
Operational technical assistance
Management
Rent/lease
Franchise
License
Consulting
Joint venture
Partnership
Agency
Ground lease
Subtenants
General contractor

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Step By Step Guide To Build A Hotel

Architects
Structural engineer
Interior surveyor
Quantity surveyor
Heat, light, power, sanitary engineers
Food facility planning
Technical assistance
Planning assistance
Geologist
Specialists
Construction manager
Site supervision manager
Project manager
Owning company
Operating company
Project coordinator
Others

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Step By Step Guide To Build A Hotel

Sample Independent contractor agreement

This Agreement is entered into as of the ________ day of ________________,


20____, between ("Company") and ____________________ ("the Contractor").

1. Independent Contractor. Subject to the terms and conditions of this Agreement,


the Company hereby engages the Contractor as an independent contractor to
perform the services set forth herein, and the Contractor hereby accepts such
engagement.

2. Duties, Term, and Compensation. The Contractor’s duties, term of engagement,


compensation and provisions for payment thereof shall be as set forth in the
estimate previously provided to the Company by the Contractor and which is
attached as Exhibit A, which may be amended in writing from time to time, or
supplemented with subsequent estimates for services to be rendered by the
Contractor and agreed to by the Company, and which collectively are hereby
incorporated by reference.

3. Expenses. During the term of this Agreement, the Contractor shall bill and the
Company shall reimburse [him or her] for all reasonable and approved out-of-
pocket expenses which are incurred in connection with the performance of the
duties hereunder. Notwithstanding the foregoing, expenses for the time spent by
Contractor in traveling to and from Company facilities shall not be reimbursable.

4. Written Reports. The Company may request that project plans, progress reports
and a final results report be provided by Contractor on a monthly basis. A final
results report shall be due at the conclusion of the project and shall be submitted
to the Company in a confidential written report at such time. The results report
shall be in such form and setting forth such information and data as is reasonably
requested by the Company.

5. Inventions. Any and all inventions, discoveries, developments and innovations


conceived by the Contractor during this engagement relative to the duties under
this Agreement shall be the exclusive property of the Company; and the
Contractor hereby assigns all right, title, and interest in the same to the Company.
Any and all inventions, discoveries, developments and innovations conceived by
the Contractor prior to the term of this Agreement and utilized by [him or her] in
rendering duties to the Company are hereby licensed to the Company for use in its
operations and for an infinite duration. This license is non-exclusive, and may be
assigned without the Contractor’s prior written approval by the Company to a
wholly-owned subsidiary of the Company.

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Step By Step Guide To Build A Hotel

6. Confidentiality. The Contractor acknowledges that during the engagement [he


or she] will have access to and become acquainted with various trade secrets,
inventions, innovations, processes, information, records and specifications owned
or licensed by the Company and/or used by the Company in connection with the
operation of its business including, without limitation, the Company’s business
and product processes, methods, customer lists, accounts and procedures. The
Contractor agrees that [he or she] will not disclose any of the aforesaid, directly or
indirectly, or use any of them in any manner, either during the term of this
Agreement or at any time thereafter, except as required in the course of this
engagement with the Company. All files, records, documents, blueprints,
specifications, information, letters, notes, media lists, original artwork/creative,
notebooks, and similar items relating to the business of the Company, whether
prepared by the Contractor or otherwise coming into [his or her] possession, shall
remain the exclusive property of the Company. The Contractor shall not retain
any copies of the foregoing without the Company’s prior written permission.
Upon the expiration or earlier termination of this Agreement, or whenever
requested by the Company, the Contractor shall immediately deliver to the
Company all such files, records, documents, specifications, information, and other
items in [his or her] possession or under [his or her] control. The Contractor
further agrees that [he or she] will not disclose [his or her] retention as an
independent contractor or the terms of this Agreement to any person without the
prior written consent of the Company and shall at all times preserve the
confidential nature of [his or her] relationship to the Company and of the services
hereunder.

7. Conflicts of Interest; Non-hire Provision. The Contractor represents that [he or


she] is free to enter into this Agreement and that this engagement does not violate
the terms of any agreement between the Contractor and any third party. Further,
the Contractor, in rendering [his or her] duties shall not utilize any invention,
discovery, development, improvement, innovation, or trade secret in which [he or
she] does not have a proprietary interest. During the term of this agreement, the
Contractor shall devote as much of [his or her] productive time, energy and
abilities to the performance of [his or her] duties hereunder as is necessary to
perform the required duties in a timely and productive manner. The Contractor is
expressly free to perform services for other parties while performing services for
the Company. For a period of six months following any termination, the
Contractor shall not, directly or indirectly hire, solicit, or encourage to leave the
Company’s employment, any employee, consultant, or contractor of the Company
or hire any such employee, consultant, or contractor who has left the Company’s
employment or contractual engagement within one year of such employment or
engagement.

8. Right to Injunction. The parties hereto acknowledge that the services to be

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Step By Step Guide To Build A Hotel

rendered by the Contractor under this Agreement and the rights and privileges
granted to the Company under the Agreement are of a special, unique, unusual,
and extraordinary character which gives them a peculiar value, the loss of which
cannot be reasonably or adequately compensated by damages in any action at law,
and the breach by the Contractor of any of the provisions of this Agreement will
cause the Company irreparable injury and damage. The Contractor expressly
agrees that the Company shall be entitled to injunctive and other equitable relief
in the event of, or to prevent, a breach of any provision of this Agreement by the
Contractor. Resort to such equitable relief, however, shall not be construed to be a
waiver of any other rights or remedies that the Company may have for damages or
otherwise. The various rights and remedies of the Company under this Agreement
or otherwise shall be construed to be cumulative, and no one of them shall be
exclusive of any other or of any right or remedy allowed by law.

9. Merger. This Agreement shall not be terminated by the merger or consolidation


of the Company into or with any other entity.

10. Termination. The Company may terminate this Agreement at any time by 10
working days’ written notice to the Contractor. In addition, if the Contractor is
convicted of any crime or offense, fails or refuses to comply with the written
policies or reasonable directive of the Company, is guilty of serious misconduct in
connection with performance hereunder, or materially breaches provisions of this
Agreement, the Company at any time may terminate the engagement of the
Contractor immediately and without prior written notice to the Contractor.

11. Independent Contractor. This Agreement shall not render the Contractor an
employee, partner, agent of, or joint venture with the Company for any purpose.
The Contractor is and will remain an independent contractor in [his or her]
relationship to the Company. The Company shall not be responsible for
withholding taxes with respect to the Contractor’s compensation hereunder. The
Contractor shall have no claim against the Company hereunder or otherwise for
vacation pay, sick leave, retirement benefits, social security, worker’s
compensation, health or disability benefits, unemployment insurance benefits, or
employee benefits of any kind.

12. Insurance. The Contractor will carry liability insurance (including malpractice
insurance, if warranted) relative to any service that [he or she] performs for the
Company.

13. Successors and Assigns. All of the provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs, if any, successors, and assigns.

14. Choice of Law. The laws of the state of XYZ shall govern the validity of this

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Step By Step Guide To Build A Hotel

Agreement, the construction of its terms and the interpretation of the rights and
duties of the parties hereto.

15. Arbitration. Any controversies arising out of the terms of this Agreement or its
interpretation shall be settled in [____________________] in accordance with the
rules of the XYZ Arbitration Association, and the judgment upon award may be
entered in any court having jurisdiction thereof.

16. Headings. Section headings are not to be considered a part of this Agreement
and are not intended to be a full and accurate description of the contents hereof.

17. Waiver. Waiver by one party hereto of breach of any provision of this
Agreement by the other shall not operate or be construed as a continuing waiver.

18. Assignment. The Contractor shall not assign any of [his or her] rights under
this Agreement, or delegate the performance of any of [his or her] duties
hereunder, without the prior written consent of the Company.

19. Notices. Any and all notices, demands, or other communications required or
desired to be given hereunder by any party shall be in writing and shall be validly
given or made to another party if personally served, or if deposited in the United
States mail, certified or registered, postage prepaid, return receipt requested. If
such notice or demand is served personally, notice shall be deemed constructively
made at the time of such personal service. If such notice, demand or other
communication is given by mail, such notice shall be conclusively deemed given
five days after deposit thereof in the United States mail addressed to the party to
whom such notice, demand or other communication is to be given as follows:

If to the Contractor:
[name]
[street address]
[city, state, zip]

If to the Company:
Any party hereto may change its address for purposes of this paragraph by written
notice given in the manner provided above.

20. Modification or Amendment. No amendment, change or modification of this


Agreement shall be valid unless in writing signed by the parties hereto.

21. Entire Understanding. This document and any exhibit attached constitute the
entire understanding and agreement of the parties, and any and all prior
agreements, understandings, and representations are hereby terminated and
canceled in their entirety and are of no further force and effect.

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Step By Step Guide To Build A Hotel

22. Unenforceability of Provisions. If any provision of this Agreement, or any


portion thereof, is held to be invalid and unenforceable, then the remainder of this
Agreement shall nevertheless remain in full force and effect.

IN WITNESS WHEREOF the undersigned have executed this Agreement as of the


day and year first written above. The parties hereto agree that facsimile signatures
shall be as effective as if originals.

By: ____________________
its: ____________________ [title or position]

[Contractor’s name]
By: ____________________
its: ____________________ [title or position]

Duties, term, and compensation

DUTIES: The Contractor will [describe here the work or service to be performed].
[He or she] will report directly to [name] and to any other party designated by
[name] in connection with the performance of the duties under this Agreement
and shall fulfill any other duties reasonably requested by the Company and agreed
to by the Contractor.

TERM: This engagement shall commence upon execution of this Agreement and
shall continue in full force and effect through [date] or earlier upon completion of
the Contractor’s duties under this Agreement. The Agreement may only be
extended thereafter by mutual agreement, unless terminated earlier by operation
of and in accordance with this Agreement.

COMPENSATION: (Choose A or B)
A. As full compensation for the services rendered pursuant to this Agreement, the
Company shall pay the Contractor at the hourly rate of [dollar amount] per hour,
with total payment not to exceed [dollar amount] without prior written approval
by an authorized representative of the Company. Such compensation shall be
payable within 30 days of receipt of Contractor’s monthly invoice for services
rendered supported by reasonable documentation.

B. As full compensation for the services rendered pursuant to this Agreement, the
Company shall pay the Contractor the sum of ____________________ [dollar
amount], to be paid _____________________________________ [time and
conditions of payment.]

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Step By Step Guide To Build A Hotel

Letter of Intent

A “letter of intent” is a written preliminary contractual document that authorizes


subcontractor’s to begin work. It is customarily employed to reduce to writing a
preliminary understanding of parties who intend to enter into contract. It gives
the owner authority to proceed prior to the execution of a more formal
contractual document between both parties. In some cases, both Contractor and
the client or Contractor and it’s subcontractors, have completed or nearly
completed contract negotiations and are awaiting internal reviews and approvals.
Occasionally a situation emerges rapidly which requires immediate action. It may
be more appropriate to define a specific limited scope of work and issue a purchase
order to cover the limited requirements, pending the negotiation of a complete
scope of work with complete funding.

Letters of intent should be limited in duration and total financial obligation.


Letters of intent must lead to a fully defined contract or be subject to a negotiated
settlement agreement due to the parties not reaching agreement on the continued
progress of the work.

A letter of intent should be as complete and definite as possible. This may include
the general provisions for the contract type. It should definitely include a funding
limitation or ceiling not to exceed price as well as a description of a mini scope of
work/schedule.

Letters of intent should be terminated and negotiated into a fully executed


agreement as soon as possible. Since a letter of intent does not include all of the
standard terms and conditions and may not allow for payment for expenditures, it
is in the best interest of all parties to finalize a negotiated agreement soon after it is
issued.

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Step By Step Guide To Build A Hotel

Hotel Project Management

Project Execution Checklist


Project Name:
Revision Date:
Project Number:
Team Leader:
Project Location:

Construction

Mobilize Field Construction


Establish Site Office
Make Arrangements for Temporary Power
Make Arrangements for Toilet Facilities
Establish Construction Lay-down Area
Site Security
Secure Vehicle Passes
Contractors Alignment on Objectives
Setup site supervision meeting schedule & format
Conduct and report on site meetings with:
Site supervisors
Owner
Safety Orientation
Change Management Procedure
Estimate to be updated as Changes are authorized
Clean Design Checklist - During Construction
Contractor to Provide Detail Construction Schedule
Construction Schedule Monitoring
Field Control for Materials & Equipment
Transportation coordination on Major Equipment/Systems
Erection Planning Guide
Start-up Planning & Procedure
Start-up Assistance (Personnel)
Document “Record” Changes on Drawings
Safety Checklist - During
Safety Monitoring
Quality Control
Measure progress and issue progress reports
Maintenance Data Transmittal Checklist

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Step By Step Guide To Build A Hotel

Project Control List

Listed below is a Hotel Project Control Checklist. Used during Hotel Development
and Construction:

ITEM REMARKS
1 Notice to Proceed

2 Received by Project Manager

3 Start Schedule Complete

4 All Bid Documents

5 Trade Payment Breakdown Complete

6 Insurance Certificates/Bonding

7 Pre-construction Conference (In-house)

8 Pre-construction Photos Taken

9 Excavation Permits Received

10 Excavation Started

11 Sheeting and Shoring Drawings


(completed)
12 Pre-construction Conference (owner)

13 Scoping Schedule Completed

14 Progress Schedule Completed

15 Submittals/Materials Schedule Completed

16 Qty. Take-offs Completed - or form


Estimating
17 Purchasing Schedule Completed

18 All Major Subcontracts


Committed/Documented
19 Concrete Schedule Completed

20 Building Permits Received

21 Manpower Budgeting Schedule Complete

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Step By Step Guide To Build A Hotel

22 Form System Selected

23 Subcontractors Change Order Log

24 Form Designs Started

25 Form Sequence Plan

26 All Drawings., and equipment on project


for Start
27 All Personnel Assigned

28 Notice to Subs. Via letter, Requesting


Schedules
29 Final Chart of Accounts and Quantities

30 First Structural Concrete Placed

31 First Owner Invoice Submitted

32 Subcontractors Mechanical Schedule


Received
33 Subcontractors Electrical Schedule
Received
34 Sub. Curtain Wall Erection Schedule
Received
35 Structural Steel Schedule Received

36 First "FSR" Received

37 All Scoping Completed

38 Change Order Log

39 Curtain Wall Plant Visit

40 First Project Status Report

41 Last Structural Concrete Placed

42 Curtain or Exterior Wall Completed

43 Roof Completed

44 Structure Weather-tight

45 Completion/Turnover Schedule Completed

46 Operation and Maintenance Manuals,


Record Drawings Submitted
47 Contractor's Punch list Inspection
Documented

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Step By Step Guide To Build A Hotel

48 Contractor's Punch list Work Started

49 Substantial Completion, Owner


Acceptance
50 Retainage Reduced

51 All Change orders and Claims Submitted

52 Releases of lien sent to subcontractors

53 Punch list Work Complete

54 Record Drawings Completed

55 All Change Orders and Claims Settled

56 Refundable Deposits Received

57 Final Owner Invoice Submitted

58 Final Payment Received

59 Final Payments Made to Subs/Suppliers

60 All Official Papers, Formal Documents,


Files, and Record Drawings Stored

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Step By Step Guide To Build A Hotel

Project Manual
Purpose:

To maintain a single bound document that includes the essential information for
efficient management of production, communications, costs, physical resources,
and finances for Hotel project success.

Responsibility:

Project Manager

When Required:

Initiate at the start of a project and maintain through completion of the project.

Scope:

See enclosures

Enclosures

The following describes the items, data, material, and information that are to be
included in the Project Manual:

Project Manager's Project Control List.

Section 1 - Production Control

1) Schedule

a) Updated Start Schedule, when applicable


b) Updated Completion Schedule, when applicable
c) Updated Delivery and Installation Schedules

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Step By Step Guide To Build A Hotel

Section 1 - Production Control (continued)

2) Meetings

a) Copy of current and previous two Main Office Job Progress Meeting
Minutes, with summary sheet on top.
b) Copy of current plus previous two Job Progress Jobsite
Subcontractor Meeting Minutes, when applicable.
c) Any other current meeting notes and/or minutes that document or
describe problems or situations which may require attention.

3) Procurement

a) Updated copy of status of Subcontracts. Use date of occurrence


rather than a check mark to indicate action completed.

Section 2 - Cost Control

1) Labor cost information The summary of labor cost for the most recent
and two previous pay periods.

2) Materials/Subcontracts Commitment Status The last month's Purchase


Commitment Summary Report.

3) Equipment The current copy of the construction manager's equipment


charge report.

4) Cost to complete the most recent project manager's projected cost to


complete summary.

Section 3 Financial Control:

1) Invoicing. A copy of the last invoice submitted to the owner.

2) Change order log. Copy of the current C/O Log

3) Construction Cost Code Summary. Current copy of the Construction


Cost Code Summary Report.

4) Subcontractor Ledger Summary. Current copy of S/C Ledger Summary


Report

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Step By Step Guide To Build A Hotel

Section 4 Contracts

1) Summary sheets. Summary of status of each subcontract amount and


changes.

2) Subcontracts & Purchase Orders. Alphabetical insertion of P.M.’s


copies of subcontracts, P.O.'s, and bonds. Each subcontract is to be
preceded by the summary sheet.

Section 5 Documentation:

1) Project Manager's Project Summary Sheet (Subcontract Status)


(a) Purpose. To be used as a guide to determine that most major
areas of responsibility are being addressed.
(b) Responsibility. Project Manager
(c) When Required. Initially and for project's duration
(d) Scope. Lists significant items, activities and milestones from start
through completion of a project.
(e) Action required.
(i) Review periodically
(ii) List the date that each area of responsibility is completed.
(iii) Get results and do not procrastinate.
(f) Forms: Project Control List
2) Document control logs.
3) Requests and Changes Log
4) Contract and P.O. Log.
5) Submittals Log

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Step By Step Guide To Build A Hotel

Project Meetings

Meetings are to coordinate the Hotel Development and Construction activities to


assure efficient and orderly installation of each component.

The following are some of the Meetings and their agenda:

Pre-construction meeting agenda:

• Execution of Owner-Contractor Agreement.

• Submission of executed bonds and insurance certificates.

• Distribution of Contract Documents.

• Submission of lists of Subcontractors, Products, Schedule of Values, and


Progress Schedule.

• Designation of personnel representing the parties in Contract.

• Procedures and processing of field decisions, submittals, substitutions,


applications for payments, proposal request, Change Orders, and Contract
closeout procedures.

• Scheduling.

Record minutes and distribute copies within one day after meeting faxed to
participants, with one copy to Architect, Owner, participants, and those affected
by decisions made.

Progress meetings agenda:

• Review minutes of previous meetings.

• Review of Work progress.

• Field observations, problems, and decisions.

• Identification of problems which impede planned progress.

• Review of submittals schedule and status of submittals.

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Step By Step Guide To Build A Hotel

• Review of off-site fabrication and delivery schedules.

• Maintenance of progress schedule.

• Corrective measures to regain projected schedules.

• Planned progress during succeeding work period.

• Coordination of projected progress.

• Maintenance of quality and work standards.

• Effect of proposed changes on progress schedule and coordination.

• Other business relating to Work.

Pre-installation meetings

• When required in individual specification sections, convene a pre-


installation meeting at work site prior to commencing work of the section.

• Require attendance of parties directly affecting, or affected by, work of the


specific section.

• Notify Architect four days in advance of meeting date.

• Prepare agenda and preside at meeting.

• Review conditions of installation, preparation and installation procedures.

• Review coordination with related work.

Record minutes and distribute copies within one day after meeting faxed to
participants, with one copy to Architect, Owner, participants, and those
affected by decisions made.

Coordination drawings:

Prepare Coordination Drawings where close coordination is required for


installation of products and materials fabricated off-site by separate entities, and
where limited space necessitates maximum utilization of space for efficient
installation of different components.

Show relationship of components shown on separate Shop Drawings.

Indicate required installation sequences.

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Step By Step Guide To Build A Hotel

Inspection of conditions:

The installer of each component shall inspect the substrate and conditions under
which work is performed. Do not proceed until unsatisfactory conditions have
been corrected.

Hotel Project Management checklist

Owning/operating company pre-opening costs


Capital cost, outline of cash flow projections
Coordination construction management
Construction cost
Construction manager
Construction schedule
Construction budget control
Construction punch list
Construction standards
Contractors list for bidding
Contracts
Design phases
Differentiation check list
Fees
FF&E
Financial analysis
Financial projections
Finishes, interior
Furniture standards
Garbage disposal system with local authorities
Government regulations
Incentives (zoning bonuses, tax abatements)
Information processing
Insurance for pre-opening period
Lodging market analysis
Marketing standards
Market studies
Materials
Objections project management
Operating permit
Policy and procedures

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Step By Step Guide To Build A Hotel

Ordering mandatory operation manuals


Organization chart for pre-opening phase
Permits for illuminated and street signs
Safety codes
Security precautions to be discussed with local police
Site investigation check list
Specifications
Working permits for expatriate staff
Zoning regulations
General construction
Furniture - fixed millwork / movable
Artwork and artifacts
Interior signage, lettering and decoration concept
Safety and security system
Size and control of elevators
TV/radio station reception per cable or aerial system
Video monitoring system
Telephones pabx
Pms (computer and reservation system)
Audiovisual system
Other special systems

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Step By Step Guide To Build A Hotel

Project Files

The Following are some of the Files maintained during Hotel Construction and
Project Management:

A) General Correspondence

B) Owner Contract
• Contract Summary
• Insurance Certificates, Bonds
• Roles & Responsibilities
• Payment Requests
• Incentives statusing

C) Changes in Owner Contract

D) Purchase Orders & Subcontracts


• Insurance Certificates/Bonds
• Payment Log

E) Submittals in Process
• Submittals Approved

F) Requests for Information in Process


• Requests for Information Finalized

G) Engineering Correspondence
• Design Agreement
• Documents Status
• Billings/Payment

H) Vendor Files (reports, submittals, evaluations)


1) Mechanical
a) OS Utilities
b) Plumbing
c) HVAC
d) Fire Protection
e) Piping
f) Insulation
g) Controls & Instrumentation
h) Operations Manuals & Spare Parts Lists

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Step By Step Guide To Build A Hotel

2) Electrical
a) Utility Agreement
b) Equipment & High Voltage Systems
c) Lighting & Low Voltage Systems
d) Process Equipment Hook-ups
e) Manuals & Parts Lists

I) Safety Plan - Meetings, Inspections, & Reports

J) Quality Plan - Meetings, Inspections & Reports

K) Progress Meetings, Reports

L) Cost:

• Labor reports
• Equipment & Tool Reports (rentals & expendables)
• PO (Materials)/Contract (Subcontractor) Status Reports
• Field PO's
• Freight & Drayage
• Travel & Miscellaneous (shop visits, off-site meetings)
• Craft worker Recruitment, Training & Incentives
• Consultants (Labs, Form/Shoring Design, etc.)
• Cost to Complete

M) Control Estimate

N) Schedule Information

O) Permits, Authorities, Inspections

P) Independent Lab Tests & Reports

Q) Project Execution Plan

R) Performance Criteria: Objectives/Evaluations

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Step By Step Guide To Build A Hotel

1 Primary Responsibility
2 Secondary Responsibility
Responsibility
Hotel Project Scheduling Control Sheet Priority
3
4
Information Only
No Action

Project Manager

Construction Manager

Team selection phase


Site Engineer
RESPONSIBILITY
ACCEPTANCE
BARRIER CONTROL
ARCH ARCH
OWNER CM DATE DESCRIPTION DESCRIPTION OWNER CM DATE
ENG'R ENG'R
Schedule activity
Initiate Project Concept

Select Architect/Engineer

Who issues A&E contract?


Establish Team Responsibilities

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Step By Step Guide To Build A Hotel

Establish Fee Structure

Establish Communications Procedures

Conceptual planning phase

RESPONSIBILITY
ACCEPTANCE
BARRIER CONTROL
ARCH ARCH
OWNER CM DATE DESCRIPTION DESCRIPTION OWNER CM DATE
ENG'R ENG'R
Schedule activity
Refine User's Program

Establish Overall Project Budget

Develop Environmental Program


& Conduct Environmental Study
Conduct Site & Bldg. Evaluation

Conduct Utilities Evaluation

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Step By Step Guide To Build A Hotel

Coordinate with Governmental Agencies

Evaluate Financial Feasibility

Prepare Master Schedule

Develop Conceptual estimate

Evaluate Budget vs. Estimate

Perform Process Hazards Review

Schematic design phase

RESPONSIBILITY
ACCEPTANCE
BARRIER CONTROL
ARCH ARCH
OWNER CM DATE DESCRIPTION DESCRIPTION OWNER CM DATE
ENG'R ENG'R
Schedule activity
Refine User's Program

Prepare Detailed Design Schedule

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Step By Step Guide To Build A Hotel

Recommend Basic Materials &


Systems
Prepare Schematic Drawings

Prepare Outline Specifications

Retain Special Consultants

Confirm Environmental Study

Analyze Alternate Systems

Conduct Constructability Analysis

Conduct Quality Review Meeting

Establish Reporting Procedures

Develop Bid Package Format

Identify Long Lead Items

Preliminary Governmental Agency Review

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Step By Step Guide To Build A Hotel

Update Conceptual Estimate

Analyze Budget vs. Conceptual Estimate

Update Master Schedule

Establish Required Building Standards

Design development phase

RESPONSIBILITY
ACCEPTANCE
BARRIER CONTROL
ARCH ARCH
OWNER CM DATE DESCRIPTION DESCRIPTION OWNER CM DATE
ENG'R ENG'R
Schedule activity
Refine User's Program

Confirm & Update Design Schedule

Evaluate Architectural Systems

Evaluate Structural Systems

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Step By Step Guide To Build A Hotel

Evaluate Mechanical/Electrical Systems

Conclude Value Engineering Analysis

Conclude Constructability Analysis

Refine Outline Specifications

Complete Design Development Drawings

Prepare Preliminary Construction Estimate

Prepare Preliminary Construction Schedule

Prepare Bidder's List


---Obtain Approval from Sourcing
Update Master Schedule

Analyze Budget vs Estimate

Refine Program Budget

Prepare Long Lead Purchase Documents

Prepare Financial Appropriation Papers

Step By Step Guide To Build A Hotel 179


Step By Step Guide To Build A Hotel

---Obtain Project Financing


Prepare required Bldg. Standards

Prepare Required Site Standards

Conclude Process Hazards Review

Contract documents phase

RESPONSIBILITY
ACCEPTANCE
BARRIER CONTROL
ARCH ARCH
OWNER CM DATE DESCRIPTION DESCRIPTION OWNER CM DATE
ENG'R ENG'R
Schedule activity
Update Design Schedule

Establish onsite staffing

Finalize Plans & Specifications

Finalize Construction Estimate

Finalize Project Budget

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Step By Step Guide To Build A Hotel

Finalize User Occupancy Schedule

Prepare Cash Flow Schedule

Final Review of Contract Documents

Finalize Safety Program

Finalize Bidders List

Final Approval of Government Agencies

Final Review by Insurance Company

Update Construction Schedule

Obtain Building Permits

Bidding phase

RESPONSIBILITY
ACCEPTANCE
BARRIER CONTROL
ARCH ARCH
OWNER CM DATE DESCRIPTION DESCRIPTION OWNER CM DATE
ENG'R ENG'R
Schedule activity

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Step By Step Guide To Build A Hotel

Issue invitations to Bid

Conduct Pre-bid Meetings

Receive & evaluate bids

Who Prepares bid summary matrix?

Notify successful/unsuccessful
bidders
Conduct pre-award meetings

Construction phase

RESPONSIBILITY
ACCEPTANCE
BARRIER CONTROL
ARCH ARCH
OWNER CM DATE DESCRIPTION DESCRIPTION OWNER CM DATE
ENG'R ENG'R
Schedule activity
Issue Purchase Orders

Prepare Submittal Control Logs

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Step By Step Guide To Build A Hotel

Prepare Material/Equipment Logs

Mobilize for Construction

Set-up Construction Field Office

Arrange & Coordinate


temporary utilities
Ensure Acquisition of Permits

Establish Site Entry/Exit Locations

Establish Pedestrian & Vehicle


Traffic Control
Establish Laydown, Storage,
Loading & Unloading areas
Monitor Progress & Update Schedule

Coordinate Daily Work Activities

Conduct Regular or Special Job Meetings

Prepare & Monitor Project Cost Controls

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Step By Step Guide To Build A Hotel

Weekly, Bi-Weekly, or Monthly Reports?

Inspect & Monitor Contractor's Progress

Monitor Work for Design Conformance

Prepare Applications for Payment

Evaluate & Approve Contractor Invoices

Maintain Shop Drawing & Submittal Logs


Who approves??
Administer Site/Bldg. Security Program

Administer Substance Abuse Program

Administer Quality Control Program


Who inspects electrical?
Who inspects mechanical?
Who inspects structural?
Who inspects soils?
Competent Person?

Coordinate User Occupancy Schedule

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Step By Step Guide To Build A Hotel

Coordinate issuance of Work


permits & Equip shutdowns

Coordinate Equipment Start-up meetings

Prepare work procedures for special jobs

Conduct incident investigations

Coordinate delivery/receipt of
owner supplied equipment
Conduct Final Inspections

Prepare Punch Lists

Certify Subcontractor Substantial Completion

Complete As-Built Documentation

Complete Operation &


Maintenance Manuals
Complete warrantees & Guarantees

Prepare Final Cost Accounting


Reports

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Step By Step Guide To Build A Hotel

Prepare Subcontractor Evaluations

Complete Project Closeout Notice

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Step By Step Guide To Build A Hotel

Punch List/Snag List

One of the final steps in closing out a construction project is the preparation of a
punch list, a simple tabulation of items not yet complete. This important effort is
often misunderstood by all parties, and made more complex and painful than
necessary.

It’s a checklist of all items on a construction project that are unfinished or


incomplete, have not been done at all, require replacement or repair, or require
additional work to achieve an acceptable level of workmanship. Such a list is often
established as a result of periodic inspections at the job site during construction
and may be included in field reports. All items must be corrected by the
contractor in a timely fashion so that the finished construction job conforms to the
contract documents.

Any construction problems should be corrected early on not left for confrontation
in the closing days. The punch list is primarily to list problems on the surface of
the project. It cannot replace on-going observation and communication. Care
should be taken to avoid creating an adversarial relationship about the punch list.
The design consultant should not adopt the mindset that the punch list is an
opportunity to finally list everything the contractor did wrong through the course
of the project.

Understand how the contractor plans to finish the job and how the owner will
occupy the building, so that everyone knows how many punch lists will need to
be done and at what times. Understand when the contractor is going to move off
the site and when the owner absolutely must move in. If the schedule is going to
require many punch lists, additional compensation to the design consultant may
be required. Clarify everyone's roles and responsibilities.

Inspecting and properly completing construction is the contractor's responsibility,


not the design consultant's. The contractor has worked for a long time and many
subcontractors coordinating a complex effort. At any time during the project, the
contractor knows what needs to be fixed and completed, what materials have not
yet been delivered, etc. Does it really make sense that the design consultant should
jump in at the last minute and generate a new list of things the contractor already
knows about?

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Step By Step Guide To Build A Hotel

It can really help to have everyone do punch list in the same order and format -
don't let a mechanical consultant prepare their list from floors 3 to 1, while the
electrical list is from floors 1 to 3. Communicate to all consultants what the overall
process is, and exactly what they are to produce by when. Look out for them
making undocumented "deals" with subcontractors or preparing their punch list
without following your procedures.

Don't lose sight of the overall purpose of the punch list - it is related to substantial
completion, the date when the project, or portions of the project, are complete
enough so that the owner can occupy or use the project or portion for the
intended use. (But, the owner can also move in or use the building before
substantial completion.) Read contractual requirements regarding substantial
completion carefully. Know where you are headed before you begin the overall
close out process.

Inspection procedures:

The design consultant should actually carry and use the contractor's list - no
matter how good or bad it is during the walk through. The design consultant can
then just verify and add marginal notes to the contractor's list. Performing the
inspection in this fashion maintains the contractor's format and shows that the
contractor's list was comprehensive (or not).

As the design consultant adds items yet to be completed or fixed, that list should
not separate work by trades or contain assumptions about which subcontractor is
to do the repair - that is the contractor's job.

The design consultant should not tell the contractor how to fix the problem, just
identify it. The "means and methods" of repairs should not usually be detailed. The
design consultant may not be able to judge what it takes to fix a problem. If the
contractor fixes something using methods recommended by the consultant and the
problem isn't corrected the consultant may be at fault. So, just state what is wrong
- i.e. - "Door 123 doesn't close properly" instead of "Trim top of door 123". "East
wall is stained" instead of "scrub east wall". Think about including photographs in
the punch list documentation.

The contractor's project manager or superintendent should participate in the


entire punch list walk through. If the contractor attends, repairs can start even

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Step By Step Guide To Build A Hotel

before the walk through is finished. Everyone will have seen the same thing and
can better deal with any confusing or complex issues.

If at all possible, conduct the walk through with the owner and get the owner's
comments incorporated. If nothing else, have the owner prepare a list before the
walk-through. No one wants the owner coming up with a new list after everyone
else has completed their reviews and repairs are underway. If the Owner has
specialized consultants - such as security, food service, etc. - make sure they are
included in the process.

If the design consultant finds so many things wrong that adding items to the
contractor's list simply doesn't work, chances are that the project is not really
"substantially complete". The contractor either needs to finish construction or
prepare a more comprehensive list. The design consultant shouldn't solve such
problems by taking on the responsibility to do an exhaustive list from scratch. The
design consultant can stop the substantial completion process when an incomplete
or massive list is first received from the contractor or can stop partway through a
walk-through when it is discovered the work really isn't done. If repeated or
extensive punch lists are required, the consultant may be entitled to additional
compensation.

After a walk-through, the lead design consultant can type up the certificate of
substantial completion. punch lists should be physically attached to the certificate
of substantial completion. That package may be big - the certificate, the
contractor's list, the consultant's additions, the engineers' lists, etc., but it is worth
it to have everything in one place, signed off on by everyone to document what
remains to be done.

The design consultant should resist the urge to tidy up the punch list into one nice
neat list, even if the contractor has provided something hand-written and a whole
pile of sub-lists have been collected from sub consultants. Retyping takes
significant effort, and likely will delay how quickly the punch list can be issued
and repairs can start. Redoing the list can also introduce typos, add interpretation,
and make the list difficult for the contractor to follow. A retyped list becomes "the
design consultant's list", and the consultant then is responsible for constant
updating and re-issuing. If it stays the contractor's list, the contractor can keep
updating it as items are completed or resolved.

The punch list is not just a look at the physical building. It should list everything
that still needs to be done to complete an entire contract for construction
including administrative items not complete, such as operation and maintenance
manuals, warrantees, city signoffs, record documents, etc. Review all parts of the
specifications and the submittal log to ensure that all open issues are listed.

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Step By Step Guide To Build A Hotel

Through careful communication and attention to established procedures, the


completion of a construction project can be rewarding and productive instead of
rushed, adversarial, and frustrating for everyone.

Those involved in a project always seem to anticipate that the design consultant,
architect, interior designer, or engineer - will just race right out to the project as
soon as the contractor hints that construction is done to prepare an exhaustive list
of everything that the contractor did wrong. Unfortunately, most projects follow
exactly that routine! This creates an antagonistic relationship, causes wasted effort,
and does not fulfill contract requirements.

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Step By Step Guide To Build A Hotel

Sample Punch List Format:

Floor Room Location Sub Location Description Installed Functioning Status Remarks Contractor
Number
1 102 Bathroom Compartments Shower Y Y B
Door
1 112 Bathroom Doors Door Y Y B
Casing
2 208 Bathroom Doors Wood Door Y Y B
2 211 Bathroom Carpentry Mirror Y N A Broken Carpentry
Frame
3 304 Bathroom Carpentry Vanity Y Y B
4 412 Bathroom HVAC Exhaust Y N A Protruding Mechanical
Grill
5 509 Bathroom Lighting Light Y N A Not Electrical
Control Functioning
5 515 Bathroom Lighting Scones Y Y B
6 601 Bathroom Plumbing Shower Y Y B
Head
6 604 Bathroom Tile and Marble Y Y B
Marble Counter
6 618 Bathroom Hardware Door Stop Y Y B

A: Work is Not Completed / Not Acceptable, B: Work Completed /Accepted, Y: Yes, N: No

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Step By Step Guide To Build A Hotel

Hotel Furniture Fixtures and Equipment (FF&E)

Hotels vary enormously in their furniture spend. Even two hotels of similar
standard could have greatly differing budgets for furnishing. Even within a chain
of hotels, the budget for furniture can vary from hotel to hotel and from floor to
floor. Executive floors can have rooms with desks. Bedrooms on different floors
can be decorated to different themes. The same beds are used on each floor but
other furniture can differ. The designer will generally look at what is available in
the market and pass this information to the hotelier. It can take months to finalize
the budget.

Hotel owners, developers and operators should not underestimate the diversity,
complexity and quantity of equipment required for a new hotel. Professional
expertise is essential to avoid a nightmare scenario of late deliveries, incorrect
specifications and inappropriate prices.

Hotel furniture is a significant physical appearance of the hotel, and one of the
main reasons why guests continue to return. Therefore, the purchase of furniture
should be made to attract customers' attention. This furniture should provide
satisfaction and comfort to the guests.

The purchase of your hotel furniture should be based on your theme and style of
the hotel and that style should be at the very top of your list when buying hotel
furniture. Since furniture investment is heavy, you need to take your time in
making the right decision.

Extensive demographic research should be done on the type of customers visiting


your area and hence your hotel and the hotel furniture should be selected based
on this specification.

The guests and visitors of the hotel should be provided with the utmost comfort
and care. The needs of the customers should be put above everything else and so
the hotel furniture should be designed with this guideline in mind.

The rooms of the hotel are constructed differently. For example single bedroom,
double bedroom and master bedroom. The hotel furniture should serve the
distinct purposes. They should also provide comfort and elegance to the customers.

The hotel furniture should be designed with quality in mind, and the investment
should only be made in high quality furniture from reputable manufacturers, who
provide a guarantee, durability and flexibility.

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Step By Step Guide To Build A Hotel

Hotel furniture plays an absolutely essential role in the overall physical


appearance of the hotel and presents the foundation of quality services offered by
the hotel. Purchasing of the best and ideal hotel furniture is a crucial factor in the
success of the hotel business.

Furniture’s Fixtures and Equipment Process:

1. Planning Draft FF&E work category chart


Draft FF&E budget
Review room mock-ups
Review & revise FF&E budget
Finalize FF&E budget
Draft overall schedule
2. Competitive Bids Establish requirements for bid submissions
Prepare bidding documents
Bidder selection/recommendations & prequalification
Prepare bidding schedule
Bid letting
Comparison & evaluation of bids
Negotiations with bidders
3. Purchase Orders/Fabrication Prepare purchase orders/contracts
Prepare L/C (for imported products)
Monitor fabrication (materials/samples/fabricated
items/pre-shipment)
4. Installation Select shipping companies
Select installation companies
File insurance claims (as necessary)
Supervise delivery/installation
Check manufacturer invoices
Collate final drawings and documents

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Step By Step Guide To Build A Hotel

FF&E Specifications:

Every item of FF&E should have specifications for them, as shown below for Guest
Room Lamp Shade.

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Step By Step Guide To Build A Hotel

Sample Furniture Fixtures and Equipment List (FF&E)

Furniture Fixtures & Equipment : Guest Room

Type of Room : Twin

Twin headboard + 2 nightstands


Beech slat base
Case goods base
Mattress 1.00 * 2.00 m
Open Wardrobe + hanging rails
+storage base unit
Desk with TV stand
Mirror/full length
Desk chair adjustable without arms
Upholstered cube chair
Luggage rack (folding) with holder
Large picture
Drapes, linings, concealed suspension
Wall lamp / single - nightstand
Wall lamp / single - mirror
Table lamp - desk
Laminate floor; clip-in 17 m2
TV / alarm
Hair dryer (if within bedroom)
Standing lamp/up lighter
Hospitality tray / coffee-tea facility
Carpet-standard or foam back 17 m2

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Step By Step Guide To Build A Hotel

Kitchen Equipment List

Trolley
Entry table c/w sink+pre rinse spray
Mobile refuse bin
Pass through dishwasher
Discharge table
Wall shelf
Hand towel
Wash hand basin
Dry good shelving
Refrigerator
Freezer 500 cu lt.
Central worktable
Boiling unit, 2 rings + stand
Microwave
Microwave bracket
Worktable
shelf
sink
Worktable
Cupboard
Coffee machine
Stainless steel canopy
Buffet toaster
Buffet cooling unit
Oven incl. 5 trays 60*40cm

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Step By Step Guide To Build A Hotel

Operational Supplies and Equipment (OS&E)

OS&E is short for Operating Supplies and Equipment. It is the small equipment
which is manufactured off site and most of if it does not require any installation. It
does not include consumable supplies such as food, drink or paper products.

Some of the examples of the many Operational Supplies and Equipment are as
follows:

Restaurant glassware, chinaware, silverware, table cloths etc

Guestrooms bed sheets, towels etc

Kitchen utensils, utensils etc

Housekeeping trolleys, vacuum cleaners etc

Back of House shelving, refuse bins etc

Staff lockers, uniforms etc

Office Equipment desks, chairs etc

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Step By Step Guide To Build A Hotel

Hotel Star Classification

Hotel Classification Process

Classification for newly operational hotels in to various categories (1, 2, 3, 4, 5 & 5


Star Deluxe) is usually sought within 3 months of completion of approved hotel
projects. Operating hotels may opt for classification at any stage.

Once a hotel applies for classification, it should be ready at all times for inspection
by the Classification Committee.

Classification is usually valid for 5 (five) years from the date of issue of orders or in
case of reclassification from the date of expiry of the last classification provided
that the application has been received within the stipulated time mentioned
above, along with all valid documents. This again is different from one Country to
other.

Hotels applying for classification must provide the following


documentation:

Application Form detailing:

• Name of the Hotel


• Name and address of the promoters / owners with a note on their
business antecedents.
• Complete postal address of the hotel with tel.no/fax/email
• Status of the owners / promoters.

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Step By Step Guide To Build A Hotel

• If Public / private limited company with copies of Memorandum


and Articles of Association.
• If Partnership, a copy of partnership deed and certificate of
registration.
• If proprietary concern, name and address of proprietor / certificate
of registration.
• Date on which the hotel became operational.
• Details of hotel site with postal address and distance from Airport /
Railway Station / City Centre / Downtown shopping area .

Details of the hotel:

• Area (in sq. meters) with title – owned / leased with copies of sale /
lease deed.
• Copy of Land Use Permit from local authorities.
• Star category being applied for
• Number of rooms and area for each type of room in sq. ft. (single /
double / suites)
• Details of public areas – Lobby / lounge, restaurants, bars, shopping
area, banquet / conference halls, health club, swimming pool,
parking facilities, facilities for the physically challenged persons,
Eco-friendly practices and any other additional facilities. The area
for each facility should be indicated in sq. ft.
• Detail of guestroom and bathroom with dimensions in sq. ft.
• Details of Fire Fighting Measures / Hydrants etc.
• Details of measures for energy conservation and water harvesting
and other eco – friendly measures and initiatives.
• Air – Conditioning details for guest rooms, public areas.
• Certificates / No Objection Certificate’s (attested copies)

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Step By Step Guide To Build A Hotel

• Certificate / licence from Local Council/Municipality / Corporation


to show that your establishment is registered as a hotel.
• Certificate / Licence from concerned Police Department authorizing
the running of a hotel.
• Clearance Certificate from Council Health Officer / Sanitary
Inspector giving clearance to your establishment from sanitary /
hygienic point of view.

Other Permits and Licenses required for Star Classification:

• No Objection Certificate with respect to fire fighting


arrangements from the Fire Service Department (Local Fire
Brigade Authorities)
• Public liability insurance
• Bar Licence
• Money Changers Licence
• Sanctioned building plans / occupancy certificate.
• If classified earlier, a copy of the earlier “Certificate of
Classification issued by Department of Tourism”.
• Any other local authority as may be required.
• Approval / NOC from AAI for projects located near Airports.
• Application Fees.

Star Category Fees

1 – Star

2 – Star

3 – Star

4 – Star

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Step By Step Guide To Build A Hotel

5 – Star

5- Star Deluxe

Hotels will be classified following a two stage procedure.

The presence of facilities and services will be evaluated against a checklist.

• New projects will be required to adopt environment friendly


practices and facilities for physically challenged persons.

• Existing hotels being classified will need to conform to a


phased plan for adding Eco-friendly practices and facilities
for physically challenged persons.

• The quality of facilities and services will be evaluated against


the mark sheet.

• The hotel is expected to maintain required standards at all


times. The Classification Committee may inspect a hotel at
any time without previous notice. The Committee may
request that its members be accommodated overnight to
inspect the level of services.

• Any deficiencies / rectification pointed out by the


Classification Committee must be complied with within the
stipulated time, which has been allotted in consultation with
the hotel representatives during inspection. Failure to do so
will result in rejection of the application.

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Step By Step Guide To Build A Hotel

• The committee may assign a star category lower but not


higher than that applied for.

• The hotel must be able to convince the committee that they


are taking sufficient steps to conserve energy and harvest
water, garbage segregation, and disposal / recycling as per
Pollution Control Board (PCB) norms and following other
Eco – friendly measures.

• For any change in the star category the promoters must


apply a fresh with a fresh application form and requisite fees
for the category applied for.

Any changes in the plans or management of the hotel should be informed to the
Department of Tourism; otherwise the classification will stand withdrawn /
terminated.

Below listed are the Star Classification Guidelines for Hotels.

Please note that this Star Classification Criteria might differ from one Country to
another. All the Guidelines listed below are not applicable for all Star Categories
(1, 2, 3, 4, 5 & 5 Star Deluxe) and that some of the criteria should be met for lower
category and most of the criteria should be met for higher category.

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Step By Step Guide To Build A Hotel

Criteria Indicator
Category 1. Location, Environment, General Construction and Car Park
1. Location and 1.1 Located in an environment reasonably suitable for this type of accommodation
Access 1.2 Located in an environment highly suitable for this type of accommodation
2.1 Safe and fairly convenient access
2.2 Safe and convenient access

2.Sign or Symbol 1. Hotel sign or symbol, clearly presented in good condition and sufficiently lit during nighttime

3. Environment and 1.1 Has good and clean area or decorations in front of the hotel, with sufficient lighting during nighttime
General Construction
1.2 Has good, clean area or decorations in front of and around the hotel, with attractive lighting during
nighttime
2. General construction in good condition, clean and safe, with sufficient lighting during nighttime
1.1 Convenient, safe embarking and disembarking passengers area with cover
4. Car Park and 1.2 Convenient, safe embarking and disembarking passengers area with slope and cover
Transportation Service
2. Safe and convenient traffic arrangement and walkway

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Step By Step Guide To Build A Hotel

3. Good air ventilation (in case of parking lots)


4. Sufficient lighting during nighttime
5.1 Number of parking spaces at least 20 % of total number of hotel rooms
5.2 Number of parking spaces at least 30 % of total number of hotel rooms
5.3 Number of parking spaces at least 40 % of total number of hotel rooms
6. Transportation Service
Category 2. Lobbies, public toilets, lifts and passageways within buildings
1. Lobbies 1.1 Clean floors, walls and ceilings in good condition, reasonably decorated
1.2 Clean floors, walls and ceilings in good condition, well decorated and suitable for the type and standard of
the hotel, including lighting and sound
2. Good air ventilation
3. Separate smoking area
4.1 Waiting area and miscellaneous services provided in good condition

4.2 Waiting area and miscellaneous services provided with at least 4 seats in good condition and suitable for
the type and standard of the hotel
5.1 Safety boxes available(including in rooms in at least 20% of total number of hotel rooms
5.2 Safety boxes available (including in rooms) in at least 50% of total number of hotel rooms
5.3 Safety boxes available (including in rooms) in at least 70% of total number of hotel rooms
6.1 Domestic and international direct dialing available
6.2 Domestic and international direct dialing and wireless internet access available
7. Efficient and up-to-date information system
8. Newspapers, magazines, brochures, other interesting information and the hotel’s local information service

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Step By Step Guide To Build A Hotel

1. Located in convenient area and distance, safe, clean and separate from utility areas
2. Public Toilets
2. Separate men’s and women’s toilets
3. Good air ventilation
4. Sufficient light and well-lit
5. Well decorated, suitable for the type and standard of the hotel

6. Floors in good condition, clean, not slippery with good drainage


2. Public Toilets 7.Clean walls and ceilings in good condition
(continued)
8. Clean doors and equipment in good condition

9. Toilet’s size no less than 0.90 m. wide covering no less than 1.20 sq.m in total area
10. Ceiling height no less than 2.40 m.
11. At least 2 clean toilet bowls in good condition
12. At least 2 clean urinals in good condition (men’s only)

13. At least 1 clean washbasin with mirror in good condition


14. Soap in clean containers provided near washbasins (0.5)
15. Hand dryers, hand towels, or tissue paper in clean containers provided near washbasins

16. Tissue paper in clean containers provided in every toilet

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Step By Step Guide To Build A Hotel

17. Sanitary bags provided in every toilet (women’s only) (0.5)


18. Clean dustbins near washbasins provided in every toilet
19. At least 1 fully equipped toilet for the disabled with appropriate tools
3. Lifts 1. Located in convenient area and distance with adequate space
(in cases where the hotel is 2. Sufficient number of lifts of practical size
more than four-storey 3. Good-quality, safe clean lifts in good condition regularly checked by a trained inspector
high) 4. Numbers indicating every floor level, clearly visible during nighttime
5. Good air ventilation within lifts

3. Lifts (in cases where 6. Interior of lift has sufficient light and is well lit
the hotel is more than 7. Interior of lift is well decorated, suitable for the type and standard of the hotel
4 storey-high) 8. Safety regulations and suggested safety procedures clearly provided within the interior of the lift
(continued) 9. Floor panel for the disabled available inside
10. Emergency call or bell in good condition available inside the life
11. Handrail, clean and in good condition available inside the lift
12. Lift has effective control panel in case of an electricity cut
13. Separate lifts for hotel guests, hotel staff, and luggage
4.Passageway within 1. Guests passageway and staff main passageway separate
buildings 2. Separate passageway for luggage

1. Passageway or balcony 1.1 Floors, walls, ceilings and balcony handrails in good condition, clean, safe and reasonably decorated
outside the room (every 1.2 Floors, walls, ceilings and balcony handrails in good condition, clean, safe and well decorated, with good
floor) light and sound system design
2. Width no less than 1.50 m.

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Step By Step Guide To Build A Hotel

3.Ceiling height no less than 2.40 m.


4. Good air ventilation (in case of double loading corridor)
5. Sufficient lighting and well lit
1. Passageway or balcony 6. Clear fire escape route plan or sign and fluorescent emergency exit sign in good condition
outside the room (every 7. Emergency light in good condition
floor) 8. 1 Sufficient number of fire extinguishers with handles or fire hoses in good condition and well positioned
(continued) (in cases of double loading corridors and buildings no higher than 23.00 m.)
8.2 Sufficient number of sprinklers in good condition and well positioned (in cases of double loading corridors
and buildings constructed after the year 1996 and higher than 23.00 m.)
9. Adequate number of efficient smoke detectors or heat detectors, well positioned (in cases of double loading
corridors and buildings higher than 2 storey)
10. Room number signs in good condition, clearly visible during nighttime
2. Room size 1.1 No less than 9 sq.m. (excluding bathroom)

1.2 No less than 18 sq.m. (including bathroom)


1.3 No less than 22 sq.m. (including bathroom)
1.4 No less than 29 sq.m. (including bathroom)
1.5 No less than 36 sq.m. (including bathroom)
3. Height of rooms 1.1 No less than 2.60 m.
1.2 No less than 2.70 m.

4. Interior factors within 1. Door and general equipment in good condition and clean
rooms
2. Effective chain door lock or substitute in good condition

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Step By Step Guide To Build A Hotel

3.Adequate peephole or substitute in good condition

4. Interior factors within 4. Clear fire escape plan on the room’s door
rooms 5. Efficient electricity power control when room is not occupied
(continued) 6. 1 At least one plug socket for electrical equipment
6.2 Universal plug adaptor for electrical equipment available or can be borrowed upon request
7. Clean floors in good condition, suitably decorated for the type and standard of the hotel
8. Clean walls in good condition, suitably decorated for the type and standard of the hotel
9. Clean ceilings in good condition, suitably decorated for the type and standard of the hotel
10. Skylights, windows and equipment in good condition and clean
11. Curtains (if any) in good condition and clean
12.1 Good air ventilation
12.2 Good air ventilation with efficient, clean and quiet air-conditioning system
13. Private with suitable relaxing atmosphere
14. 1 Sufficient lighting and well-lit
14.2 Sufficient lighting and well-lit, especially the door area, desk and around bed headboard
14.3 Sufficient lighting and well-lit, creating a good atmosphere, especially the door area, desk, bed headboard
and floor
15.1 Adequate number of efficient fire extinguishers with handles or fire hoses, well positioned (in cases
where buildings are no higher than 23.00 m)
15.2 Adequate number of sprinklers in good condition and well positioned (in cases where buildings were
constructed after the year 1996 and are higher than 23.00 m.)
16. Adequate number of efficient smoke detectors or heat detectors, well positioned (in cases where buildings
are higher than 2 storey)

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Step By Step Guide To Build A Hotel

17. At least one room with suitable facilities and furniture for the disabled

5. Room furniture 1. Sufficient luggage space in good condition


2.1 Cupboard or clothes shelves at least 0.45 m. deep and 0.90 m. wide
2.2 Closet at least 0.55 m. deep and 1.10 m. wide
3.1 Bed size at least 0.90 m. (3’) x 1.90 m.
3.2 Bed size at least 1.00 m. (3.5’) x 1.90 m.
3.3 Bed size at least 1.20 m. (4’) x 2.00 m.
4. Bed in good condition, suitable for the type and standard of the hotel
5. Decorated bed headboard area in good condition, suitable for the type and standard of the hotel
6. Clean mattress in good condition, made of good-quality materials
7. Sofa or armchair available in good condition, suitable for the type and standard of the hotel
8. Coffee table available in good condition, suitable for the type and standard of the hotel
9. Table and chair available in good condition, suitable for the type and standard of the hotel
10. Dressing table and chair, with dressing mirror in good condition, suitable for the type and standard of the
hotel
11. Full-length mirror in good condition, suitable for the type and standard of the hotel

6. Room electrical 1.1 Color television at least 14 inches available and in good condition
equipment
1.2 Color television at least 20 inches and in good condition, with remote control or substitute provided

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Step By Step Guide To Build A Hotel

2.1 Free satellite, cable & in-house channels - no less than 8 channels
2.2 Free satellite, cable & in-house channels - no less than 12 channels

6. Room electrical 3.1 Refrigerator in clean and good condition available to at least 50 % of total number of hotel rooms
equipment 3.2 Refrigerator no less than 2 cu.ft available in every room in clean and good condition
(continued) 4.1Intercom available
4.2 Telephone for making internal, direct domestic and international phone calls or through operator
4.3 Telephone for making internal, direct domestic and international phone calls
5. Room extension phone line (0.5)
6. High-speed Internet available
7. Stereo in good condition, suitable for the standard of the hotel
8. Water heater or coffee maker available (0.5)
7. Room Inventory 1. A copy of room regulations
2. Room service sign or door knob menu available (0.5)
3. “Do not disturb” and “Please clean my room” sign or switch available (0.5)
4. Room service food menu available
5. Manuals for television and TV programmes available
6. Manuals for telephone and phone directory available
7. 1 Two clean pillows minimum in good condition
7.2 At least three clean pillows and extra pillows in good condition available
8.1 Clean bed sheet in good condition

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Step By Step Guide To Build A Hotel

8.2 Three clean bed sheets in good condition per bed or one duvet/bed

7. Room Inventory 9. Two clean bathrobes (0.5)


(continued) 10. At least eight clothes hangers in good condition
11. Laundry list (0.5)
12. Laundry bag (0.5)
13. Sewing kit (0.5)
14. Two pairs of clean slippers (0.5)
15. Shoe shine service or shoe shine kit available (0.5)
16. Stationary folder containing pieces of paper and pen or pencil
17.1 Mini bar containing beverage and snacks
17.2 Mini bar containing beverage, alcoholic drinks and snacks
18. Two complimentary bottles of water
19. Two complimentary sets of coffee, tea, sugar and cream (0.5)
20.Two clean glasses
21. Clean ice bucket and ice tongs (0.5)
22. Bottle opener (0.5)

23. Clean dustbin


24. Matches and ashtray (not available in non-smoking rooms) (0.5)

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8. En-suite bathroom 1. Clean door or entrance and equipment in good condition (0.5)
2. Efficient air ventilation, clean and quiet
3. Sufficient lighting and well-lit
4. Well decorated, suitable for the type and standard of the hotel
5. Clean and non-slippery floors in good condition, with drainage
6. Clean walls in good condition
7. Clean ceiling in good condition
8. Toilet no less than 0.90 m. wide covering no less than 1.20 sq. m. in total area and bathroom including all
functional areas should be no less than 2.50 sq. m.
9. Ceiling height no less than 2.40 m.
10.1 Shower and tools in good condition and clean
10.2 Shower and tools in good condition and clean, with shower curtain or partition available
10.3 Bathtub and tools in good condition and clean with style suitable for the type and standard of the hotel,
with shower curtain or partition
10.4 Shower or bathtub with tools in good condition and clean, with style suitable for the type and standard
of the hotel with no less than 50 % of total number of hotel rooms providing both a shower and bathtub
with curtain or separate partition
11. Clean shower mat or substitute in good condition and clean (0.5)
12. Efficient safe water temperature control system in good condition

8. En-suite bathroom (continued) 13.1 Hair dryer in good condition, or provided by the hotel (0.5)
13.2 Hair dryer in good condition (0.5)

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Step By Step Guide To Build A Hotel

14. Extension phone line (0.5)


15. Weight scales in good condition (0.5)
16. Plug socket for electrical equipment (0.5)
17. Dressing area
18. Clean and quiet toilet bowl in good condition
19.1 Clean washbasin with mirror in good condition
19.2 Clean washbasin with mirror and magnifying mirror in good condition
20. Tower shelves placed in dry area (0.5)
21. Robe for hanging clothes or substitute place in dry area (0.5)
22. Two clean large-size towels in good condition
23. Two clean face towels in good condition (0.5)
24. Two clean hand towels in good condition (0.5)
25. Two clean foot towels in good condition (0.5)
26. Facial tissues in clean container (or available in bedroom) (0.5)
27. Toilet paper in clean container, not wet

28. Sanitary bag (0.5)


29. clean shower cap (0.5)
30. Two clean glasses (0.5)
8. En-suite bathroom (continued) 31. Two sets of clean toothbrushes and toothpaste (0.5)
32. Two bars of soap or liquid soap in clean container, with no stagnant water
33. One set of foam bath in clean container (0.5)
34. One set of hair shampoo in clean container (0.5)
35. Clean dustbin

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Step By Step Guide To Build A Hotel

36. At least one bathroom with facilities and equipment suitable for the
disabled

Category 4: Suite and Executive Floor


1. No less than 5 % of total number of hotel rooms, in cases where total
1. Suite (safety, health, decoration, number does not exceed 100 or no less than 5 rooms in cases where total
furniture, electrical equipment, complimentary products number exceeds 100 (rooms with connecting doors count as one)
and bathroom factors no less than standard rooms) 2.1 At least two different styles
2.2 At least three different styles
3.1 Total area no less than 40 sq. m. (excluding bathroom and balcony)
3.2 Total area no less than 60 sq. m. (excluding bathroom and balcony)

4. En-suite bathroom in living room which can be used directly (except Junior
Suite)
5. Color television no smaller than 25 inches in good condition and suitable for
the type of the hotel with remote control or substitute, well placed
6. Mini Compo, DVD, VDO or VCD in good condition and qualified for the
standard of the hotel (except Junior Suite), well placed

2. Executive Floor 1. Total area no less than 36 sq.m. (bathroom included)


(safety, health, decoration, 2. Check in-check out on same floor (0.5)
furniture, electric 3. Information Center staff available (0.5)
equipment, complimentary 4. Well-decorated and furnished conference room, with air-conditioning system and efficient soundproof
products and bathroom system , at least four seats available

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Step By Step Guide To Build A Hotel

factors no less than standard 5. Well-decorated and furnished waiting area for business or general purposes, at least four seats available
rooms) 6. Bar counter or eating area, well decorated and furnished, at least four seats available
7. Photocopy, facsimile, long-distance phone call and high-speed Internet services available

Category 5: Restaurants, Coffee Shop, Bar and Kitchen


1. Restaurant has Local Cuisine or international food available
1. Restaurants
3.1 Clean floors, walls and ceilings in good condition, reasonably decorated
3.2 Clean floors, walls and ceilings in good condition, well decorated and suitable for the type and standard
of the hotel, with good light and sound system design
4. Good air ventilation
5. Separate smoking area
6. Convenient food transfer passageway, separate from guests’ passageway
7. Well-decorated bar counter, suitable for the type and standard of the hotel
8. Furniture in good condition, suitable for the type and standard of the hotel

1. Restaurants 9. Clean utensils and equipment in good condition, suitable for the type and standard of the hotel, utensils
(continued) and equipment sufficiently provided all the time in the case of a buffet
10. In the case of hot dishes, saucers must always be provided (0.5)
11. Clean tablecloth or saucers, suitable for the type and standard of the hotel (0.5)
12.Serviettes or tissues in clean container, suitable for the standard of the hotel (0.5)
13. Food and beverage menu with clear details and prices (0.5)

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Step By Step Guide To Build A Hotel

14.Good-quality, hygienic and delicious food and beverage, food and beverage sufficiently provided all the
time in the case of a buffet
15. Food and beverage display and decoration
16.1 Domestic and international direct dialing telephone available (0.5)
16.2 Domestic and international direct dialing telephone and wireless Internet available (0.5)
1.1 Separate coffee shop or included within restaurants, reasonably decorated
2. Coffee Shop
1.2 Well-decorated coffee shop, suitable for the type and standard of the hotel, with good light and sound
system design
2. Good air ventilation
3. Furniture in good condition, suitable for the type and standard of the hotel

4. Clean utensils and equipment in good condition, suitable for the type and standard of the hotel

5. Food and beverage menu with clear details and prices

6. Good-quality, hygienic and delicious food and beverage

3. Bar 1. Well-decorated bar, suitable for the type and standard of the hotel
2. Well designed lighting inducing pleasant atmosphere, with appropriate and
high quality sound system
3. Good air ventilation
4. Furniture in good condition, suitable for the type and standard of the hotel
5. Cutlery and utensils in good condition, suitable for the type and standard of
the hotel

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Step By Step Guide To Build A Hotel

6. Appetizers and beverage menu with details and price list


7. Good-quality, hygienic and delicious appetizers and beverage
1. Located in area and distance convenient for waiting service without causing
4. Kitchen interference to other areas
2. Convenient, hygienic passageway for transporting food ingredients and
waste separate from passageway for guests
3. Clean entry-exit and air ventilation system in good condition, capable of
efficiently preventing insects and other animals from entering
4. Ceiling height no less than 2.40 m.
5. Clean and easy-to-clean floors in good condition, not slippery, with good
drainage
6. Clean and easy-to-clean walls and ceiling in good condition
7. Good, efficient and clean air ventilation (especially near the stove area)
8. Good smoke, smell, sound and heat prevention system between kitchens and
dinning area
9. Sufficient light and well-lit
10. Appropriate and hygienic storage area and tools
11. Areas for hot dishes and cold dishes appropriately divided

4. Kitchen 12. Appropriately separated preparation areas for food and desserts
(continued) 13. Clean utensils and cutlery in good condition, suitable for the type and standard of the hotel,
conveniently, tidily and safely located for ease of use
14. Waste and fat efficiently and hygienically dealt with

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15. Necessary kitchen regulations, safety regulations and tool instructions clearly presented
16. Clear fire escape plan or signals and fluorescent emergency exit sign in good condition
17. Emergency lights in good condition
18.1 Sufficient number of efficient fire extinguishers with handles or fire hoses well placed (in cases where
the building is no higher than 23.00 m.)
18.2 Sufficient number of efficient sprinklers well placed (in cases where the buildings were constructed
after the year 1996 and which are higher than 23.00 m.)

19. Sufficient number of efficient smoke detectors, heat detectors or gas detectors, well placed (in cases
where the buildings are higher than 2 storey)

20.Non-smoking area

5.Toilets for Kitchen 1. Located in safe clean area and distance convenient for use without causing interference to dining area
(in cases where it’s separate 2. Separate men’s and women’s toilets
from lobby hall) 3. Clean floors in good condition, not slippery with good drainage
(with safety, hygiene,
4. Clean walls and ceiling in good condition
sanitary ware and
5. Clean door and sanitary ware in good condition
equipment factors no less
6. Good air ventilation
than toilets in lobby hall )
7. Sufficient light and well-lit

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Step By Step Guide To Build A Hotel

8. Well decorated, suitable for the type and standard of the hotel
9. Toilet area no less than 0.9. m. wide with an area of no less than 1.20 sq. m.

10. Ceiling height no less than 2.40 m.


Category 6: Recreation area: Swimming Pool

1. Swimming Pool 1. Separate pool for children no deeper than 0.60 m.


2 Clean and well-decorated floors, walls, ceiling (if any) or environment in good condition, suitable for the
type and standard of the hotel
3. Sufficient light and well-lit

4. Pool regulations and equipment instructions clearly presented

5. Clean water and other equipment regularly taken care of by an expert


6. Water depth indicated at every change in depth
7. Adequate number of efficient life-saving equipment installed in visible spots easy for use

8. Well-experienced and skilled safeguard

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Step By Step Guide To Build A Hotel

1. Swimming Pool 9. Sufficient number of clean chairs or sun beds in swimming pool area in good condition, suitable for the
(continued) type and standard of the hotel
10. Adequate number of large clean towels in good condition
11. Outdoor showering space in safe and beautiful natural environment
12. Offers privacy and appropriately prevents any disturbances
13. Located in an area with convenient and safe access to toilets and lockers
14. Located in an area with convenient and quick access to first-aid room
2. Toilets for recreation 1. Located in convenient, safe and clean area, without causing interference to other recreational spaces
area category 6 2. Separate toilets for men and women
(Safety, hygiene, sanitary 3. Clean floors in good condition, not slippery with good drainage
ware and equipment factors
no less than toilets in lobby 4. Clean walls and ceiling in good condition
hall) 5. Clean door and equipment in good condition
6. Good air ventilation
7. Sufficient light and well-lit
8.Well decorated, suitable for the type and standard of the hotel
9. Toilet area no less than 0.90 m. wide and covering no less than 1.20 sq. m. and total bathroom area no less
than 2.50 sq.m.
10. Ceiling height no less than 2.40 m.
11. Clean shower and equipment in good condition, with shower curtain or partition
12. Efficient and safe water temperature control system in good condition
13. Dry area for changing with curtain or partition

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Step By Step Guide To Build A Hotel

14. Sufficient number of large towels in good condition


15.Towel rack in dry area (0.5)
16. Full-length mirror in good condition (0.5)

Category 7. Location, Business Service: Conference Room and Business Center


1. Conference Room 1. Area no less than 200 sq. m.
2. Ceiling height of the lowest part no less than 2.80 m.
3. Clean, well-decorated floors, walls and ceiling in good condition, suitable for the type and standard of the
hotel, including lighting design with dimmer and high quality sound system with good acoustics
4. Good air ventilation
5. Well-decorated lobby area for registration, waiting, coffee break or general use, with furniture suitable
the type and standard of the hotel
6.1 Technician staff responsible for VDO, VCD, DVD, slide projector with screen no smaller than 48 inches
or good-quality substitute in good condition
6.2 Technician staff responsible for VDO, VCD, DVD, slide projector, LCD projector with screen no smaller
than 72 inches or good-quality substitute in good condition
7. Sufficient number of good-quality translation system service at least in four languages
8. Efficient and good-quality teleconference system service
9.Clear fire escape plan or fire exit sign and fluorescent emergency exit in good condition
10. Emergency light in good condition
11.1 Sufficient number of efficient fire extinguishers with handles or fire hoses, well positioned (in cases
where buildings are no taller than 23.00 m.)

11.2 Sufficient number of efficient sprinklers, well positioned (in cases where the buildings were built after

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Step By Step Guide To Build A Hotel

1996 and are higher than 23.00 m.)

12. Sufficient number of effective smoke detectors or heat detectors, well positioned (in cases where
buildings are higher than two storey )

2. Business Center 1. Located in area and distance convenient for quick service
2.1 Area no less than 24 sq. m.
2.2 Area no less than 32 sq. m.
3.Clean floors, walls and ceiling in good condition, well-decorated and suitable for the type and standard of
the hotel
4. Good air ventilation
5. Sufficient light and well-lit
6. Staff and room regulations and equipment instructions available
7. Good-quality furniture, suitable for the type and standard of the hotel, at least four seats
8. White board or flip board with pen and board wiper or good-quality substitute in good condition
9. Slide projector with screen or good-quality substitute in good condition
10. Good-quality photocopying service
11.1 International and domestic phone line and Internet service available
11.2 Internal, international and domestic phone line and wireless Internet service available
12. Effective facsimile service
13. Good-quality computer and printer in good condition
14. Efficient and well-experienced staff available for business document and tools service
15. Business supportive information such as company list, phone number and e-mail address

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Step By Step Guide To Build A Hotel

3.Toilets for Conference Room 1. Located in safe clean area and distance convenient for use without causing
(in cases where it is separate from lobby hall) interference to conference area
(with safety, hygiene, sanitary ware and 2. Separate men’s and women’s toilets
equipments factors no less than toilets in 3. Clean floors in good condition, not slippery with good drainage
lobby hall )
4. Clean walls and ceiling in good condition
5. Clean door and sanitary ware in good condition
6. Good air ventilation
7. Sufficient light and well-lit
8. Well decorated, suitable for the type and standard of the hotel
9. Toilet area no less than 0.9. m. wide covering no less than 1.20 sq. m.
10. Ceiling height no less than 2.40 m.
Category 8: Staff and Service
1. Staff of every section and level 1. Properly dressed
2. Wear name tag, suitable for the type and standard of the hotel

3. Have good personality, good manners and are friendly


4. Communicate well in English and in foreign languages, comply with job responsibility ,
suitable for the type and standard of the hotel
5. Provide information and help relevant to job responsibility effectively
2. Doorman and Porter 1. Open the door for guests upon arrival (0.5)
2. Give warm and friendly greeting (0.5)
3. Relocate all guests’ luggage and belongings to porters luggage trolley and deliver them
to the room tidily

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Step By Step Guide To Build A Hotel

4. Answer phone calls before third ring tone

2. Doorman and Porter 5. Give proper greeting, give name and department of the receiver as well as confirming number of luggage
(continued) (0.5)
6. Take guests’ luggage within 5 minutes after answering phone call by gently knocking the room door
7. Relocate guests’ luggage to porters luggage trolley tidily and deliver them to the car
8. Thank the guests and wish them a safe journey (0.5)
3. Check-in, 1.1 Welcome guests within 1 minute
Rooming the Guest, 1.2 Welcome guests within 30 seconds
Check-out 2. Greet in friendly manner (0.5)
3. Prepare registration document along with other details in advance (0.5)
4. Explain room types as well as smoking and non-smoking rooms
5. Confirm the check-out date (0.5)
6. Check in guests within 5 minutes
7. If the room is not ready, guests should be informed of the waiting time. Guests shall be asked to wait in the
lobby and served drinks.
8. Staff available for conversation, service and assistance accompanying guests to the room

9. Explain room equipment instructions such as electrical appliances , the air-conditioner and television
10. 1 Check out guests within 10 minutes

10.2 Check out guests within 5 minutes


11. Prepare expense list for guests to check and provide a receipt sealed in envelope within 5 minutes if

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Step By Step Guide To Build A Hotel

requested

12. Thank the guests for staying (0.5)

4. Guest Service 1. Warm and friendly greeting (0.5)


2. Answer phone calls before third ring tone
3. Greet and give name and department of the receiver (0.5)
4. Provide information service on tourist attractions near the hotel, route suggestions, appropriate
arrangements for transportation and excursions such as flights, taxi, rental cars, boats and tours
5. Wake-up call service at arranged time within 5 minutes
1. Turn over the sheet between 18.00 p.m. to 21.00 p.m.
[17] 2. Clean floor, bathroom, balcony (if any) and arrange furniture in appropriate position
3. Place pillows and bed sheet in place
4. Check if newspapers, magazines, stationary, matches, laundry bag, sewing kit, shoe shine kit, slippers and
door knob menu are in the right places
5. Replace used glasses, utensils and toiletries with new ones
5. Housekeeping 6. Check if drinking water, beverage, coffee, tea, sugar, cream and snacks in the fridge and mini bar are in the
right place
7. Replace used towels, face towels, foot mat and bathrobes with new ones
8. Check if facial tissues, toilet paper, shower caps and sanitary bags are properly placed
9. Check if soap bars, liquid soap, foam bath, shampoo, toothpaste and toothbrush are properly placed
10. Empty ashtray and dustbin, clean and place them back properly
11. Leave the cupboard door open if a television is inside and place remote control in proper position (0.5)
12. Adjust room temperature on thermostat for the comfort of guests (0.5)

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Step By Step Guide To Build A Hotel

6. Breakfast and Buffet 1.1 Greet guests within 1 minute


1.2 Greet guests within 30 seconds
2. Warm and friendly greeting (0.5)
3. Ask the number of people (0.5)
4. Lead guests to a table and pull out the chairs (0.5)
5. Take used plates, cutlery and food leftovers within 3 minutes after a guest finishes a meal
6. Thank guests for visiting (0.5)

7. Restaurants 1.1 Welcome guests within 1 minute


1.2 Welcome guests within 30 seconds
2. Warm and friendly greeting (0.5)
3. Ask if a table is reserved and the number of people (0.5)
4. Lead guests to a table and pull out the chairs (0.5)
5.Present guests with food and beverage menu within 2 minutes after sitting
6. Return to take order within 5 minutes after giving food and beverage menu
7. Take orders for food and beverage from ladies first (0.5)
8. Capable of suggesting and answering questions regarding food and beverage listed on menu
9. Capable of suggesting and answering questions regarding alcoholic drinks listed on menu
10. Inform guests about which food and beverage not available on the menu and which dish requires more than
15 minutes to prepare
11. Correctly repeat every order of food and beverage
12. Arrange utensils and cutlery suitable for food and beverage type

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Step By Step Guide To Build A Hotel

13. Serve beverage within 10 minutes after taking order (except items that require more preparation time)
14. Serve food within 15 minutes after taking order (except items that require more preparation time)

7. Restaurants 15. Serve dessert within 10 minutes after taking order (except items that require more preparation time)
(continued) 16. Take used plates, cutlery and food leftovers within 3 minutes after a guest finishes a meal
17. Ask if guests are satisfied with the food and service (0.5)
18. Thank guests for visiting (0.5)
19. 24 hour room service for food and beverage

Category 9: Security system in general area


1. Safe wiring system and equipment installation meeting standards, regularly checked by a trained inspector
1. Security system: Fire
2. Safe and appropriate fuel prevention such as stored petrol and gas

3. Fire escape plan or fire exit signal, fluorescent emergency exit sign clearly visible

4. Emergency light in good condition, placed at necessary spots


5. Well-lit fire escape route in good condition with air ventilation leading to safe area, and a ladder placed in
convenient position, , regularly checked (in cases where buildings are higher than 4 storey)
6. Well-lit lift for fire fighting placed in a position allowing convenience and quick use, fully equipped, with
air ventilation, in efficient and safe condition, regularly checked by a trained inspector (in cases where the
building was built after 1996 and is higher than 23.00 m.)
7.1 Sufficient number of efficient fire extinguishers with handles and fire hoses well placed (in cases where the

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Step By Step Guide To Build A Hotel

buildings are no higher than 23.00 m.)


7.2 Sufficient number of efficient sprinklers well placed (in cases where the buildings were built after 1996 and
are higher than 23.00 m.)
8. Sufficient number of smoke detectors or heat detectors in good condition, well positioned (in cases where
the buildings are higher than 2 storey)

2. General Security 1. Efficient security system, capable of surveillance or recording entry and exit areas and other focal spots
System over 24 hours
2. Efficient generator and spare petrol ready for use for at least 2 hours
3. Reserve water supply to be used in necessary activities for at least 1 day (adequate amount for extinguishing
any fire)
4. Effective and prompt communication system for asking for emergency help from other networks
5. Tested and regularly practiced disaster prevention and alleviation plan and warning system

6.1 Good-quality cure-all and first-aid kit, ready for effective use, placed in convenient position
6.2 Ward with beds, effective cure-all and first-aid kit, ready for effective use, placed in convenient position,
with well-experienced nurses on duty 24 hours

Category 10: Resources and Surrounding Community


1. Effective and hygienic cleaning-up system for garbage and sewage
1.Environment,
2. Hygienic and effective water treatment system

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Step By Step Guide To Build A Hotel

Resources and Energy 3. Economical and effective use of resources such as water, petrol, gas, electricity, paper, plastic, glass, fabric
and other extra appliances
4. Appropriate and effective use of equipment and technology promoting energy-fuel saving
5. Not encouraging any recreational activities causing interruption and harm to environment

6. Promotion of campaigns among staff and guests to encourage economical and effective use of resources and
energy

2. Community, Society 1. Promoting arts, culture and traditions such as decorations, costumes, food, handicrafts and recreation
and Human Rights 2. Promoting national and local products such as OTOP and products from housewife groups
3. Encouraging and taking part in community activities
4. Respecting national, religious and cultural differences and treating people of every gender, age and status
equally
5. Discouraging prostitution and other illegal activities
6. Damage insurance complying with minimum standards as defined by law

Category 11: Staff


1. Adequate number of separate lockers for men and women in good condition,
1. Service 2. Sufficient number of clean toilets in good condition, men’s and women’s separate
Support 3. Sufficient number of clean shower rooms in good condition, men’s and women’s separate
4. Clean eating area in good condition and of sufficient size
5. Clean relaxing area in good condition and of sufficient size
6. Library or training rooms with sufficient number of clean learning equipment in good condition

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Step By Step Guide To Build A Hotel

2. Welfare Promotion 1. Social insurance for full-time staff of every level


2. No violation of labour laws in areas such as pregnant women, illegal child labour and foreign labour

Category 12. Other additional attributes


1. Extra Activities 1.1 At least three types of services and extra activities both indoor and outdoor, such as souvenir shop, beauty
parlor, men’s barber, karaoke, snooker, game room, kid’s room, cooking class and handicrafts, playground,
bicycles, golf

1.2 At least five types of services and extra activities both indoor and outdoor

2. Acceptance from 1.1 Have at least one certificate or award in various areas from related organizations and meet national
individuals and outside standards
organizations 1.2 Have at least three certificates or awards in various areas from related organizations and meet national
standards

2.1 Have at least one certificate or award in various areas from related organizations and meet international
standards
2.2 Have at least two certificates or awards in various areas from related organizations and meet international
standards
3. Regularly visited by important persons both at national and international levels

3. Extra welfare for staff 1.1 At least one type of financial welfare such as grant for living expenses and children’s education fees

1.2 At least two types of financial welfare

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Step By Step Guide To Build A Hotel

2.1 At least two types of other welfare such as accommodation, food and transportation

2.2 At least three types of other welfare

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Step By Step Guide To Build A Hotel

Hotel Pre Opening Planning

Hotel pre opening planning is an important consideration for the successful


operation of the hotel. There are various aspects to pre opening, ranging from pre
opening budgets, staffing to projecting incomes and expenses to facilitating all the
departments properly.

Some of the important aspects of Hotel Pre Opening are listed below:

Hotel Pre Opening Expenses Forecast


Sales & Marketing

FCST FCST FCST FCST FCST FCST 0


EXPENSES 6 5 4 3 2 1 TOTAL

Advertising Agency Fees


Advertising Agency Production
Advertising Directories
Advertising Magazines
Advertising Newspapers
Advertising Radio/TV/Website
Brochures/Collateral
Consortia Fees
Direct Mail/Newsletter
Equipment Rental
In-House Production/Printing
Kiosks
Trade Shows
Reservations Call Center Fees
Meals & Entertainment
Mileage
Miscellaneous
Photo Shoot
Print, Stationery & Office
Telephone

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Step By Step Guide To Build A Hotel

Public Relations
Special Promotions
Postage
Trade Assn. Dues, Publications
Travel & Lodging
Training
Open

TOTAL

Hotel Pre Opening Expenses Forecast


Administrative & General

FCST FCST FCST FCST FCST FCST


EXPENSES 6 5 4 3 2 1 TOTAL

Audit
Competition Shop
Contracted Service
Relocation Expense
Equipment Rental
Insurance
Legal Fees/Licenses
Lease- Equipment
Meals & Entertainment
Mileage
Miscellaneous
Postage
Print, Stationery & Office
Software Maintenance
Telephone
Trade Assn. Dues
Travel & Lodging
HR- Recruitment
Placement Fee
Tax & Financial Service
Depreciation

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Step By Step Guide To Build A Hotel

Training
Land Lease
Office Lease

TOTAL

Hotel Pre Opening Utility Expenses Forecast

FCST FCST FCST FCST FCST FCST


Expenses 6 5 4 3 2 1 TOTAL

Electric
Gas
Water & Sewage

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Step By Step Guide To Build A Hotel

Hotel Pre Opening Expenses Forecast


Human Resources

Number Salary FCST FCST FCST FCST FCST FCST


SALARIES & WAGES 6 5 4 3 2 1 TOTAL

General Manager
Director of Operations
Revenue Manager
Executive Secretary

Director of Sales
Senior Sales Manager
Executive Meeting Manager
Conference Services Manager
Director of Catering
Catering Sales Manager
Sales Coordinator

Front Office Manager


Guest Services Manager
Assistant Front Office Manager

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Step By Step Guide To Build A Hotel

Executive Housekeeper
Assistant Executive Housekeeper
Open

F & B Operations Manager


Dining Room Manager
Executive Chef
Dining Room Chef
Banquet Chef
Pastry Chef
Banquet Manager

Human Resources Director


Training Coordinator

Hotel Controller
Night Manager
Purchasing Manager

Chief Engineer
Asst. Chief Engineer
Sub-Total Management

Hourly Staff
Front Office/Reservations/Valet

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Step By Step Guide To Build A Hotel

Housekeeping
Engineering/Security
Restaurant
Bar
Room Service
Banquets
Kitchen/Steward/Cafeteria
Accounting
PBX
Administration

Sub-Total Hourly

Total

Taxes and Benefits

TOTAL

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Step By Step Guide To Build A Hotel

Hotel Pre Opening Checklist


Administrative and General
Controls
Insurance
Determine Insurance Needs
Research Insurance Providers
Select Insurance Provider(s)
Ensure insurance is activated
Purchasing & Receiving
Implement purchase order system
Develop Inventory Management Reports
Payroll
Establish payroll procedures
SOP's
Develop A&G SOP's
Accounting Manual
Establish hotel credit policy and procedures
Develop internal forms
Set-up Cash Deposit Procedures
Banking
Set-up bank accounts
Set-up credit card agreements
Obtain licenses and permits

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Step By Step Guide To Build A Hotel

Liquor License
Business Licenses
Environmental Permits
Sales Tax Permit
Third Party Agreements
Leases
Retail
Develop Standards of Performance
Develop RFP
Release RFP
RFP Deadline
Lease Selected
Lease executed
Employee Orientation
F&B
Develop Standards of Performance
Develop RFP
Release RFP
RFP Deadline
Lease Selected
Lease executed
Employee Orientation
Financial Reporting
Daily Revenue Report
Daily Labor Report

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Step By Step Guide To Build A Hotel

Period Financial Statements


Period Ending Management Report
Planning
Performa
Annual Strategic Plan
Complete First Year Operating Budget
Complete Pre-opening Budget
Develop forecasting program
Forecast (Rooms)
Forecast (Rooms and F&B)
Weekly Forecast (Total Property)
IT
Manual Back Up - SOP's
Timekeeping System
Telephone System
Simplex
Payroll System
OCV
Back Office System
Sales/Catering System
PMS
POS
Systems
PMS
Develop RFP

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Step By Step Guide To Build A Hotel

Develop Business Process


Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
POS
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
Key lock System
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget

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Step By Step Guide To Build A Hotel

Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
Back-Office System
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
Entertainment System
Television
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline

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Step By Step Guide To Build A Hotel

System Selected
System Specifications Determined
System Installed & Tested
System Training
Music
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
Timekeeping System
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested

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Step By Step Guide To Build A Hotel

System Training
Telephone System
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
Connectivity (Guest & Admin)
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
Group/Catering Sales Management System
Develop RFP

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Step By Step Guide To Build A Hotel

Develop Business Process


Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
Secondary System
Develop RFP
Develop Business Process
Determine Workstations: Amount and Location
Determine Budget
Release RFP
RFP Deadline
System Selected
System Specifications Determined
System Installed & Tested
System Training
Develop comment card/guest feedback program
Determine survey sources/review samples
Develop comment forms
Develop survey procedures/system
Print comment cards/forms

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Step By Step Guide To Build A Hotel

Printed Materials
Business Cards
Payroll Checks
AP checks
Purchase Requisitions/Orders
Human Resources
Staffing
Organization
Develop Organizatiol Chart
Develop Staffing Guide
Develop Hiring Schedule Sun
Customize Position "Must" Lists
Customize Position Job Descriptions
Develop Incentive Plans
Leadership Team
Sales Managers/Reservation Sales Agents
Managers
Employees
Develop reward/recognition programs for hourly employees
Recruitment
Management
Hire Senior Management Team
Select Search Firm(s)
General Manager
Director of Operations

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Step By Step Guide To Build A Hotel

Director of Rooms
Director of F&B
Spa Director
Hotel Controller
Chief Engineer
Revenue Manager
Director of Human Resources
Director of Sales & Marketing
Hire Department Heads
Select Search Firm(s)
Purchasing Manager
Front Office Manager
Executive Housekeeper
Food & Beverage Operations Manager
Banquet Manager
Beverage Manager
Executive Chef
Spa Manager
Accounting Mager
Hire Junior Managers
Rooms
Assistant Front Office Manager
Guest Service Manager
Chef Concierge
Assistant Executive Housekeeper

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Step By Step Guide To Build A Hotel

F&B
Banquet Manager
Restaurant Manager
Dining Room Chef
Banquet Chef
Garde Manager
Demi Chef
Pastry Chef
A&G
Night Manager
A&S
Reservation Sales Manager
Hire Sales Managers
Director of Catering
Senior Sales Manager
Executive Meeting Manager
Hire Catering Assistant
Conference Service Manager
Supervisors
Rooms
Front Office Supervisor
Housekeeping/Floor Supervisor
Housekeeping/Turndown
Housekeeping/Night
Bell Captain

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Step By Step Guide To Build A Hotel

Chef Concierge
Reservation Sales Coordinator
Food & Beverage
Dining Room Supervisor
Maitre De
Room Service Captain
Banquet Captain
Beverage Supervisor
Cafeteria Supervisor
Head House person (Banquets)
A&G
Executive Administrative Assistant
Accounting
Credit Supervisor
Lead Night Auditor
Security
Security Supervisor
R&M
Engineering Supervisor
Engineering Administrative Assistant
Spa
Spa Supervisor
Hourly
Rooms
Front Office

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Step By Step Guide To Build A Hotel

Receptionist
Telephone
Bell Attendant
Door Attendant
Driver
Valet Office Attendant
Valet
Concierge
Night GSA/Night Auditor
Housekeeping
Room Attendant
Housekeeping Clerk
House Person
Room Attendant
Floor Care Attendant
Public Area Attendant
Turndown Attendant
Night Cleaner
Uniform Attendant
Laundry
Laundry Attendant
F&B
Casual Restaurant
AM Host/Hostess
AM Server

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Step By Step Guide To Build A Hotel

AM DRA
PM Host/Hostess
PM Server
PM DRA
Fine Dining Restaurant
Sommelier
Waiter
DRA
Host/Hostess
Back Waiter
Afternoon/High Tea
Runner
Server
Culinary
Banquet Cook
Prep Cook
Pantry Cook
Pastry Cook
Demi Cook
AM Cook
PM Cook
Banquet Cook
Cafeteria Attendant
Buffet Attendant
Beverage

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Step By Step Guide To Build A Hotel

Bartender
Bar back
Cocktail Server
Banquets
Server
House person
Temporary Staff
In-Room Dining
Server
Coordinator
Spa
Receptionist
Therapists
R&M
Engineer I
Engineering II
Engineering III
HVAC
Painter
Preventative Maintenance Tech
A&G
Security
Security Officer
Security Office Attendant
Accounting

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Step By Step Guide To Build A Hotel

Night Auditor
Accounts Payable
Accounts Receivable
General Cashier
Payroll/Benefits
Income Auditor
Purchasing & Receiving
Receiving/Storeroom Clerk
A&S
Catering Administrative Assistant
Sales Administrative Assistant
Reservations
Reservations Sales Agent
SOP's
Discipline/House Rules
Vacation
Evaluation and Merit Increases
Attendance
Leave of Absence
Report in Pay/On-Call
Dress Code
Uniform/Badge/Material/Equipment Issue
Flowers for Ill or Deceased Family Members
Bereavement
Jury Duty

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Step By Step Guide To Build A Hotel

MOD
Pay Policy
Education Assistance
Holiday Policy
Sexual Harassment
At Will Employment
Employment of Relatives
Associate Status
Employee Requisition
Job Posting/Internal Transfer Procedure
Termination
Lay-off/Recall
Bridge of Service
Hours of Work
Time Clocks/Time Keeping
Solicitation
Associate Liaisons
Military Leave
Worker's Compassionate Leave
FMLA Leave
Personal Leave
Email
School Leave
Computer Equipment
Confidentiality

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Step By Step Guide To Build A Hotel

Reward & Recognition Program


Incorporate Parent Company SOP's
Develop MDSD Books/Procedures
Develop Internal HR Related Forms
Training & Development
Service
Develop Service Standard Philosophy
Purchase Standards Manual
Customize Standards Manual
Develop Service Standards by Department/Position
Develop Job Skill Training by Department
Develop associate handbook
Sales and Catering Training
Develop Sales Training Program
Conduct Sales Training Program ,
Develop Catering Training Program
Conduct Catering Training Program ,
Management Training
Company Orientation
Interview/Recruitment Training
Team Building/Building an Effective Team
Train the Trainer (Skills and Knowledge Training)
Human Resources Procedures
Boot Camp
Manager's Role

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Step By Step Guide To Build A Hotel

Active Listening/Effective Communication


Communicating and Gaining Commitment to Standards
Situational Leadership
Effective Coaching
Goal Setting/Performance Standards
Sexual Harassment
Conflict Resolution
Conducting Effective Meetings
Hotel Policy & Procedures
General Training
Operational skills training
Life safety, fire and evacuation training
Emergency Procedures
CPR/First Aid
New Hire Orientation
Departmental Orientation
Specific Job Skill Training
Telephone Etiquette/Standards
Sanitation Certification
Responsible Alcohol Service
MOD Program
Develop MOD Manual/SOP's
Conduct MOD Training
Mass Hire
Develop Procedures to Respond to Internal Applications

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Step By Step Guide To Build A Hotel

Letter To Notify Transfers


Develop Recruitment/Advertising Plan
Develop Setup
Solicit Volunteers
Train Volunteers
Develop System to Process
Develop Modified Interviewing System
Develop Scripts
Procure Pipe/Drape/Equipment
Obtain Service Test Video
Arrange Phone for Credit References
Spa & Health Club
Fitness Center
Select and procure exercise equipment
Develop SOP's
Select and procure Operating Supplies & Equipment
Treatments
Develop Treatment Programs
Develop SOP's
Select and procure Operating Supplies & Equipment
SOP's
Develop Spa SOP's
Printed Materials
Spa Menu
Rooms Division

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Step By Step Guide To Build A Hotel

SOP's
Develop Rooms Division SOP's
Printed Materials
Privacy Please Signs
Privacy Courtesy Note
Umbrellas
Telephone Pads
Dialing Instructions
Driving Directions
VIP Note Cards/envelopes
Fax Delivery Envelopes
Guestroom Note Pad
Valet Laundry Bag
Valet Laundry Price Sheet
Shoe Shine Bag
Shoe Shine Instructions
Activity Calendar
Newsletter
PBX
PBX Cut-Over from Pre-opening Office
Guest Services
Develop VIP program
Transportation
Vehicle Acquisition
Finalize schedules & routes

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Step By Step Guide To Build A Hotel

Review samples/pricing
Order final selection
Receive final selection
Apply logo
Develop preventive maintenance program
Vehicles in service
Roadwork
Determine route
Evaluate road condition
Make adjustment
Housekeeping
Contract Valet Dry Cleaning Service
Establish quantities and specifications
Compile a list of contractors
Interview contractors
Receive proposals
Award contract
Service available
Uniform Processing
Develop uniform issuance/storage procedures
Food & Beverage
SOP's
Develop F&B Division SOP's
Store Room
Establish Room locations

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Step By Step Guide To Build A Hotel

Develop Organization and Item Storage Locations


Develop Requisition Procedures
Employee Dining Room
Develop Hours of Operation/Staggered Meal Periods
Training of Staff
Fire & Test All Equipment
Area Cleaned
Finalize Rotational Menu
Develop Pre Menu Planner
Develop Order Guide
Finalize Any Needed Purchases/Small Wares
Outlet Menus
Initial draft prepared
Leadership Team Review
Competitive Review/Analysis
Notes to Chef
New menus prepared
Final Review
Menu tasting
Menu specs and costing prepared
Menu Descriptions Available for Servers
Dining Room - Table Tops
Centerpiece - PM
Finalize Specifications and Amount
Review Samples

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Step By Step Guide To Build A Hotel

Order Selection
Selection Received
Vase - AM
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
S&P Shakers
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
Sugar - AM
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
Sugar - PM
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
Room Service - Table Top
Vase
Finalize Specifications and Amount

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Step By Step Guide To Build A Hotel

Review Samples
Order Selection
Selection Received
S&P Shakers
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
Sugar
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
Banquets - Table Top
Centerpieces
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
S&P Shakers
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
Sugar

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Step By Step Guide To Build A Hotel

Finalize Specifications and Amount


Review Samples
Order Selection
Selection Received
Creamers
Finalize Specifications and Amount
Review Samples
Order Selection
Selection Received
Printed Materials
Cocktail napkins
Room Service Pick-Up Cards
Room Service Tray Mat
Glass Cover
Menus
Breakfast
Determine Format
Select Menu Board
Select Paper
Artwork/Layout
Lunch
Determine Format
Select Menu Board
Select Paper
Artwork/Layout

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Step By Step Guide To Build A Hotel

Dinner
Determine Format
Select Menu Board
Select Paper
Artwork/Layout
Wine/Beverage List
Determine Format
Select Menu Board
Select Paper
Artwork/Layout
Lounge Menu
Determine Format
Select Menu Board
Select Paper
Artwork/Layout
Afternoon Tea Menu
Determine Format
Select Menu Board
Select Paper
Artwork/Layout
Room Service Menu
Determine Format
Select Menu Board
Select Paper
Artwork/Layout

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Step By Step Guide To Build A Hotel

Door Knob Breakfast Menu


Determine Format
Select Menu Board
Select Paper
Artwork/Layout
Mini Bar Menu
Determine Format
Select Menu Board
Select Paper
Artwork/Layout
F&B Inventories
Develop Kitchen par stock
Develop master beverage/bar stock and wine list
Procure opening F&B inventories
Select purveyors/buying program
Bar Entertainment
Select and schedule bar entertainment
Banquet Menus
Initial draft prepared
Director of Catering Review
Competitive Review/Analysis
Notes to Chef
New menus prepared
Final Review
Banquet menu tasting

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Step By Step Guide To Build A Hotel

Menu specs and costing prepared


Menu Descriptions Available for Servers
Operational Supplies and Equipment ( OS&E)
ADA Equipment
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Rooms Linen
Develop bed linen & bath standard
Review samples/pricing
Order final selection
Receive final selection
Wash
Make beds/stock baths
Chi, Glass & Silver
Finalize service standard & quantities
Review samples/pricing
Order final selection
Receive final selection
Wash
Stock
Glassware-Other
Finalize service standard & quantities

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Step By Step Guide To Build A Hotel

Review Samples/Pricing
Order Final Selection
Receive Final Selection
Wash
Stock
F&B Linen
Finalize service standard & quantities
Review Samples/Pricing
Order Final Selection
Receive Final Selection
Wash
Stock
Kitchen Small wares
Finalize service standard & quantities
Review Samples/Pricing
Order Final Selection
Receive Final Selection
Wash
Stock
Banquet Equipment
Finalize service standard & quantities
Review Samples/Pricing
Order Final Selection
Receive Final Selection
Wash

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Step By Step Guide To Build A Hotel

Stock
Select and procure grand piano
Guest Ice Machines
Review samples/pricing
Order final selection
Receive final selection
Install
F&B Consumables
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Guest Bath Amenities
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Guestroom Amenities
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock

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Step By Step Guide To Build A Hotel

Guestroom Hair Dryers


Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install
Guestroom Cosmetic Mirrors
ID Task me Duration Start Finish Actual Finish Predecessors
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install
Maintenance inventory
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Maintenance Tools
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock

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Step By Step Guide To Build A Hotel

Maintenance Equipment
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Housekeeping Equipment
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Housekeeping Guest Consumables
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Housekeeping Cleaning Supplies
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Spa Equipment

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Step By Step Guide To Build A Hotel

Finalize items & quantities


Review samples/pricing
Order final selection
Receive final selection
Stock
Spa Guest Consumables
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Spa Cleaning Supplies
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Rooms Print & Stationary (Registration, key packet, etc.)
Guest Services Directory
Review Samples
Develop content/mock-up
Review proof
Print final collateral
Key Packet
Review Samples

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Step By Step Guide To Build A Hotel

Develop content/mock-up
Review proof
Print final collateral
Develop registration/check-out system and collateral
Review Samples
Develop content/mock-up
Review proof
Print final collateral
Administration/Sales Print & Stationary (paper system)
Review Samples
Develop content/mock-up
Review proof
Print final collateral
Uniforms
Review samples
Develop custom pieces
Review custom samples
Make final selections
Procure custom pieces
Procure stock pieces
Front Office Supplies
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection

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Step By Step Guide To Build A Hotel

Stock
Front Office Equipment
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Administration Supplies
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stock
Shelving
Determine shelving needs
Order shelving
Shelving received
Install shelving
Office Furniture- Back Of House
Develop Furniture Plan
Review samples/pricing
Order fil selection
Receive final selection
Install
Office Equipment

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Step By Step Guide To Build A Hotel

Hotel Safe
Copy Machines
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install
Postage Machine
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install
Fax Machines
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install
Computers/Printers
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install

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Step By Step Guide To Build A Hotel

Pool Equipment
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install
Guestroom Safes
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install
Security
Two-way radios
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install
Monitoring System
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Install

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Step By Step Guide To Build A Hotel

Keys
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Stanchions
Finalize items & quantities
Review samples/pricing
Order final selection
Receive final selection
Sales & Marketing
Marketing Plan
Purpose
Story
Design
Care
Authenticity
Competition Analysis
Pricing Analysis
Spreading The Word
Website/E-Commerce
Publicity
Promotions
Sales Goals and Action Plans
Revenue Management Final

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Step By Step Guide To Build A Hotel

Implement group pace report Final


Implement group evaluator model Final
Establish stretch goals for Convention Services
Establish group room contribution goals for Sales Final
Develop daily transient demand by season
Set SST's
PMS Training Final
Set restrictions in PMS
Implement Rate Codes In PMS
Enter Packages Into PMS
Develop Merchandising Meeting agenda Final
Develop daily/weekly/Monthly reporting
Develop forecasting system (daily, weekly, Monthly, annual)
Develop Selling Strategy Calendar
Set Initial Selling Strategies
Reservations
Guest Letters
Complete Basic Confirmation Letter
Complete Current Package Confirmation Letters
Create Insert with Cancellation/Change Policy
Gift Certificates
Develop Gift Certificate Options
Develop SOP's
On-Hold Message
Complete On-Hold Message Recording

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Step By Step Guide To Build A Hotel

Install On-Hold Message


Pre-Opening Callers and Drop In's
Phone Line Allocation
Develop SOP's
Develop Telephone Scripting
Staff Training
Training
Select Third Party Sales Training Program
Schedule Training
Packaging
Evaluate Valley Periods and Need Areas
Develop Packages
Develop Schedule For Package Roll Outs
Select AV provider
Determine scope of work
Compile list of bidders and interview
Receive proposals
Award contract
Develop AV Services Brochure
SOP'S/Office Organization
Develop sales proposals & contracts
Implement Account Coverage Program
Contract shopping service for Sales Managers
Develop repeat guest program
Direct Sales (Pre-opening)

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Step By Step Guide To Build A Hotel

Complete Catering blitz of CBD


Complete Business Travel blitz of CBD
Leisure individual
Identify direct mail/e-mail databases for leisure markets
Initiate direct mail/e-mail campaign
Spreading The Word
Image/Brand
Conduct Image/Brand Exercise
Develop Positioning Statement
Develop Tag Lines
Develop Logo(s)
Develop Graphics Standards Manual
Advertising
Develop advertising/media plan by market segment
Create advertising
Media buys
Establish Tracking Mechanism for advertising campaign
Launch advertising campaign
Establish listings in directories (HTI, OHG, OAG, Official meeting facilities guide)
Develop in-room TV Promotion Video
Establish local yellow pages line listing
Evaluate potential of co-op advertising with CVB, etc.
Affiliations
Determine Need (Mobil, AAA, Preferred, LHW, etc.)
Coordinate Inspections

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Step By Step Guide To Build A Hotel

Establish Lodging Association Membership


Establish Restaurant Association Membership
Establish Chamber Membership
Sales Collateral
Develop facilities guide/presentation folder
Develop Pre-Opening Brochure
Develop Permanent Brochure
Develop Spa Brochure
Develop ancillary sales collateral/stationery
Develop Press Kit
Develop Property Maps
Develop Key Card Design
Develop Tariff Cards
Photography/Video
Coordinate photo shoot for permanent brochure
Photo shoot
Photography available
Video Shoot
Video Available
Public Relations
Hire PR Firm
Develop Media Kit
Write the Story
Develop hotel fact sheet
Develop Bio's

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Step By Step Guide To Build A Hotel

Select Photography
Solicit Editorials
Develop Media Visit Schedule
Develop community/regional partnerships (Arts, Film, etc.)
Establish listing/contact with local organizations (Chamber, CVB, etc.)
Soft-opening PR Activities
Establish Pre-opening Date
Gifts
Select Client/VIP Gifts
Procure Client/VIP Gifts
Select Staff/Management Gifts
Procure Staff/Management Gifts
Construction Party
Determine list of attendees
Determine dates
Develop invitation
Develop invitation lists
Mail invitations
Detail events
Develop Program
Budget
Staffing Needs
Parking and Transportation
Floral and Decorations
Entertainment

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Step By Step Guide To Build A Hotel

Photography
F&B
Develop Menus
Procure Food
Procure Beverage
Develop Amenities
Procure Rentals
Pre-opening receptions
Determine list of target groups
Determine dates
Develop invitation
Develop invitation lists
Mail invitations
Detail events
Develop Program
Budget
Staffing Needs
Parking and Transportation
Floral and Decorations
Entertainment
Photography
F&B
Develop Menus
Procure Food
Procure Beverage

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Step By Step Guide To Build A Hotel

Develop Amenities
Procure Rentals
Media Breakfast/Party
Determine list of target groups
Determine date
Develop invitation
Develop invitation lists
Mail invitations
Detail events
Develop Program
Budget
Staffing Needs
Parking and Transportation
Floral and Decorations
Entertainment
Photography
F&B
Develop Menus
Procure Food
Procure Beverage
Develop Amenities
Procure Rentals
Trial Visits
Management/Staff Overnights for Testing
ends & Family Overnights

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Step By Step Guide To Build A Hotel

VIP Overnights
Grand Opening.
Hotel Opening Date
Determine list of target groups
Determine date
Develop invitation
Develop invitation lists
Mail invitations
Detail events
Develop Program
Budget
Staffing Needs
Parking and Transportation
Floral and Decorations
Entertainment
Develop Ancillary Activities for Guests
Procure Off-site Lodging
Photography
F&B
Develop Menus
Procure Food
Procure Beverage
Develop Amenities
Procure Rentals
On-line Reservations

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Step By Step Guide To Build A Hotel

Reservations Sales Agents Training


Develop On-line reservation web page
Load revenue management information (set selling strategies and restrictions)
Develop PMS configuration documentation
Website
Research Web Hosting
Select Web Host
Design Web Pages
Test & Feedback
Load For Public Use Final
Packages
Leisure
Determine need dates
Determine target audience
Develop package
Develop package collateral/purchase advertising
Launch package advertising
Tour Group
Determine need dates
Determine target audience
Develop package
Develop package collateral/purchase advertising
Launch package advertising
Maintenance & Engineering
Printed Materials

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Step By Step Guide To Build A Hotel

Maintenance Performed Courtesy Note


Cleaning Chemicals
Select ware washing and housekeeping chemical supplier
Install ware washing and housekeeping chemical equipment
Domestic Water
Determine water treatment for central plant
Preventive Maintenance Programs
Develop rooms preventive maintenance program
Develop public areas preventive maintenance program
Develop equipment preventive maintenance program
Develop chiller, KWH, gas and water temp./pressure logs and meter logs
Safety
Ensure fire extinguishers are in place
Develop Safety Committee
Model Rooms
Coordinate move of model rooms
Repair Response System
Develop work order system
Research and Procure Work Order Software
Training
Guest Key Card System training
Television/Movies training
Mechanical/HVAC training
Guestroom PM program training
Public space PM program training

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Step By Step Guide To Build A Hotel

Building management system training


Signage
Select and procure interior signage
Select and procure exterior signage
Pre-opening offices
Locate and Prepare pre-opening offices
Relocate Pre-opening Offices to Hotel
Develop MOD manual
Develop risk management manual/evacuation plan
Obtain fire department approval of fire/evacuation plan
MSD Sheets
Compile MSD Sheets for all Chemicals
Construction/Building Preparation
Kitchen
Substantial completion
Punch
Submit punch list to Chef, Dir. F&B for comments
Punch list items corrected
Equipment commissioning complete
Area cleaned
Restaurant
Substantial completion
Punch
Submit punch list to Chef, Dir. F&B for comments
Punch list items corrected

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Step By Step Guide To Build A Hotel

Equipment commissioning complete


Area cleaned
Meeting Space
Substantial completion
Punch
Submit punch list to Chef, Dir. F&B for comments
Punch list items corrected
Equipment commissioning complete
Area cleaned
Lounge/Bar
Substantial completion
Punch
Submit punch list to Chef, Dir. F&B for comments
Punch list items corrected
Equipment commissioning complete
Area cleaned
Retail
Substantial completion
Punch
Punch list items corrected
Area cleaned
Lobby
Substantial completion
Punch
Punch list items corrected

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Step By Step Guide To Build A Hotel

Area cleaned
Guestroom Punch
01st Floor
Substantial completion
Punch
Punch list items corrected
Area cleaned
02nd Floor
Substantial completion
Punch
Punch list items corrected
Area cleaned
03rd Floor
Substantial completion
Punch
Punch list items corrected
Area cleaned
04th Floor
Substantial completion
Punch
Punch list items corrected
Area cleaned
05th Floor
Substantial completion
Punch

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Step By Step Guide To Build A Hotel

Punch list items corrected


Area cleaned
06th Floor
Substantial completion
Punch
Punch list items corrected
Area cleaned
07th Floor
Substantial completion
Punch
Punch list items corrected
Area cleaned
Spa
Substantial completion
Punch
Punch list items corrected
Area cleaned
Building Exterior
Substantial completion
Punch
Punch list items corrected
Area cleaned
Landscaping
Substantial completion
Punch

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Step By Step Guide To Build A Hotel

Punch list items corrected


Area cleaned
Back-Of-The-House
Substantial completion
Punch
Punch list items corrected
Area cleaned
Uniform Room
Substantial completion
Punch
Punch list items corrected
Area cleaned
Procure uniform racks
Install Uniform racks
Administrative/Front Office
Substantial completion
Punch
Punch list items corrected
Area cleaned
Furniture Fixtures & Equipment(FF&E) Installation
Guestrooms
01st floor
02nd floor
03rd floor
04th floor

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Step By Step Guide To Build A Hotel

05th floor
06th floor
07th Floor
Spa
Treatment Areas
Fitness Center
F&B
Lounge/Bar
Meeting Space
Restaurant
Public Areas
Lobby
Retail
Back-of-the-house
Administrative Offices
Kitchen/Engineering/Housekeeping
Testing/Documentation
All Areas Substantially Complete
Verify proper operation of all Life Safety equipment/systems
TCO
CO
Obtain "As Built" plans
Obtain all warranties and equipment information
Environmental/Recycling
Research Sources and Options

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Step By Step Guide To Build A Hotel

Develop SOP's
Contract Maintenance and Service Agreements
Rodent and Pest Control
Develop RFP
Receive Bids
Award Contract
Indoor Plants
Develop RFP
Receive Bids
Award Contract
Indoor Floral
Develop RFP
Receive Bids
Award Contract
Landscape
Develop RFP
Receive Bids
Award Contract
Snow Removal
Develop RFP
Receive Bids
Award Contract
Mechanical
Develop RFP
Receive Bids

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Step By Step Guide To Build A Hotel

Award Contract
Life Safety
Develop RFP
Receive Bids
Award Contract
Secure Background Music
Design Received
Design approved
Receive Bids
Contract awarded
Service installed and tested

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