HOTEL COST ESTIMATING GUIDE

HOTEL COST ESTIMATING GUIDE 2011

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| ? 2011 JN+A & HVS Design | 7361 Calhoun Place, Suite 310, Rockville, Maryland 20855 | |

HOTEL COST ESTIMATING GUIDE 2011

HOTEL COST ESTIMATING GUIDE 2011

TABLE OF CONTENTS

Introduction ..................................................................................................................................................... 4 Hotel Capex on the Upswing: Remembering 2010 & Previewing 2011 .......................................................... 6 Cost Estimating Summary Sheet ..................................................................................................................... 8 Cost Estimating Tables by Hotel Tier ............................................................................................................... 11

Economy .......................................................................................................................................................................... 11 Extended Stay ...................................................................................................................................................................17 Midscale ............................................................................................................................................................................25 Upscale .............................................................................................................................................................................35 Upper Upscale ..................................................................................................................................................................45 Luxury .................................................................................................................................................................................55

Perspectives on Capital Expenditures ............................................................................................................. 65

Capitalizing the Impossible: Today's Options for Funding a Hotel Renovation ................................................................. 66 Sustainable Design Helps Hotels Save for the Long Run .................................................................................................69 Boom, Gloom, Recovery: Current Trends in FF&E ...........................................................................................................71 Fuel Prices Come Back - How This Affects FF&E Budgets .............................................................................................. 73 Sweet & Sustainable: How to Tempt Owners to Buy Into Going Green ........................................................................... 74

Glossary of Freight / FF&E Terms .................................................................................................................. 76

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HOTEL COST ESTIMATING GUIDE 2011

INTRODUCTION

Two years ago, seeing the need for a way to quickly find an approximate estimate of quality and up-to-date costs for hotel renovation projects, JN+A and HVS Design prepared the first Hotel Cost Estimating Guide. This guide provided a quick, clear reference with ranges of prices to broadly estimate the cost of hotel renovations. In 2010 the guide was updated due to the significant changes and volatility in the market.

Now in its third year, the 2011 Hotel Cost Estimating Guide has been updated to include more useful information for hotel renovation decision-makers and reflect the changes that have occurred from 2010 to 2011.

For the 2011 guide, our team sought out articles that address the new economic reality that hotel owners, asset managers, design teams, and contractors are facing. The perspectives on hotel capital expenditures published in this year's guide reflect a positive attitude toward forging ahead with hotel renovation and construction projects. The authors provide useful advice and reflect on emerging trends regarding issues such as renovation project financing, embracing and budgeting for sustainable design, understanding changes in FF&E costs, and lowering the cost of freight and shipping.

FF&E and Freight Management: As in the 2009 and 2010 guides, we want to recognize the efforts of Benjamin West and Audit Logistics for providing cost data for FF&E and freight management. In this guide, Benjamin West has provided low, medium, and high prices for various FF&E items that are commonly required in hotel renovations. The pricing information was compiled from actual purchase orders that were implemented in 2010 and 2011. Benjamin West's pricing evaluation included custom FF&E items so that the costs indicated in the guide are the most representative amounts possible.

The FF&E amounts included in the guide do not include tax, freight, or warehousing because these amounts vary greatly based on location, weight of the materials to be shipped, and the manufacturer's distance from the site.

Contractor Data: Our team wishes to thank the following General Contractors for the large amount of time they volunteered to provide us with unit cost data for each of the categories and sub-categories included in the guide. JN+A has successfully worked with each of these contractors on past projects. All of them are well-known, regionally- or nationally-based contractors that specialize, or have departments that specialize, in the hospitality industry. These organizations are acutely aware of the crucial need for efficient operation in hotels with regard to noise and guest satisfaction, as well as the primary need to produce complete, guest-ready hotel rooms.

Complete Property Services, Inc. Heidenberger Construction, Inc. Land-Ron, Inc. MP Johnson Construction, Inc. R.D. Olson Construction Reliance Construction Company Triad Construction Services, Inc. Turner Construction Company

When using this guide, please note that since project-specific conditions will affect the final cost of every renovation project, this estimating guide will not include all costs for each hotel renovation. Costs such as Professional Fees, Contingency, Operating Supplies & Equipment, Attic Stock, Freight, Sales Tax, etc. have not been included. However, this guide does identify broad areas of costs that will likely apply to most types of hotel renovations and can provide preliminary insight when planning for such work.

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HOTEL COST ESTIMATING GUIDE 2011

HOTEL MARKET TIERS: MODEL HOTEL CRITERIA FOR 2011 GUIDE

Line item costs included in this guide have been estimated using the following models in each hotel tier:

Economy 90 guestrooms, 3 stories (all with guestrooms), 30 rooms / floor Extended Stay 150 guestrooms, 4 stories (all with guestrooms), 40 rooms / floor Midscale w/ F&B 135 guestrooms, 5 stories (all with guestrooms), 27 rooms / floor

Upscale 304 guestrooms, 9 stories (8 with guestrooms), 38 rooms / floor Upper Upscale 192 guestrooms, 25 suites, 7 stories (6 with guestrooms), 41 bays / floor

Luxury 200 guestrooms, 20 suites, 6 stories (5 with guestrooms), 46 bays / floor

COST CATEGORIES

Renovation costs in this guide have been separated into the following cost categories. Throughout the guide, the colors shown in the chart below are used to indicate each category.

Guestrooms, Guest Bathrooms, Guestroom Corridors Public Spaces Food & Beverage Outlets Function Spaces Recreational Facilities Infrastructure

2011 HOTEL COST ESTIMATING GUIDE AUTHORS

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