1. Identify the steps of hotel development from conceptualization to grand opening.

2. Explain how location influences the success of a hotel.

3. Evaluate the importance of completing a feasibility study before building a new lodging
facility.

4. Outline the factors involved in obtaining financial backing for hotel development and
operation.

5. Identify the basic design requirements of a hotel.

6. Explain the concept of ambiance and its role in guest satisfaction.

• Once the preliminary development concept is clarified, the ideas and goals can be
formalized into concrete objectives.

Décor/
Name
ambiance

No of Rooms Type of hotel

Room rate
Concept
Type of ownership
structure

Location
• Is to determine whether the project is a feasible or capable of being carried out successfully.
• Based on a detailed study of the opening and operation factors.
• the management will look for evidence that supports or rejects the predetermined concept.
• ‘Will the proposed hotel generate enough profit to meet the expectations of its investors?’
• The study also projects the hotel’s rates and occupancy level and estimates its operating
expenses.

• This stage is a critical turning point for the project.

• The developers must secure funding and begin negotiations with construction and
management companies.
• Funding must cover more than the cost of construction and the expense of operating
until the hotel reaches viable.
• Ways of controlling operating costs must be decided during this phase in order to be
included in the design phase.
• The actual design and construction of the hotel is now begin.
• The project is designed, built and equipped according to the recommendations of the
feasibility study and the goals of the developers.
• Management or franchise agreements are formalized
• Preliminary marketing and personnel training usually begin during this stage.

• The sales and marketing staffs are fully operational, ensuring that the hotel will have
guests from the first day.
• All front- and back-of-the-house staff are trained and prepared to welcome guests.
• Facility opens for business.
•Lots of factors contribute to the hotels’ potential success, but the location is the most
influential.
•This formula for success is supported by studies showing that most guests rate proximity
high on their list of deciding factors when choosing a place to stay.
•Lodging facilities may even be classified according to their location, that is airport,
downtown, suburban, highway, or resort.

•Were originally built to house airline flight crews and those travelers whose flight were
postponed, canceled or delayed overnight.
•Provides food and beverage services to passenger waiting for flight together with
banquet, meeting and convention facilities.
•Usually offers quick and easy transportation to and from the airport, ranging from
underground moving sidewalks to shuttle service.
•Due to the limited availability of land in the inner city and the high cost of developing in
densely populated areas, downtown hotels usually are high-rise structures
•Tend to have higher average room rate than other types of hotels because of the expense
of real estate and of doing business in a city.
•Serving predominantly business travelers and conventioneers.
•Higher occupancy rate on weekdays and lower occupancies on weekends.
•Normally offer flexible meeting, banquet space and limited recreational facilities.

•Originally provided lodging for travelers who wanted quick access to the downtown area,
but who did not want to spend the night there.
•May benefit from lower taxes and land costs, they are frequently restricted by other
regulations including height and size-zoning guidelines. These regulations limit most
suburban hotels to mid-rise with two hundred to five hundred rooms.
•Developed with the growth of transportation.
•Serving transient guests who stay an average of one night, facilities are generally very
simple one or two storey, exterior corridor structure with less than 200 rooms.
•Provide free surface parking and outdoor or enclosed recreational facilities for both
business and leisure travelers.

•Located near a particular attraction or are attractions in and of themselves.

•Location is essential to their success.
•Often built away from population centers and transportation routes.
•Normally resort must compensate for any lack of infrastructure.
•Roads and utility systems may need to be developed, some resort even provide employee
housing and off-duty employee recreational facilities.
•Some resorts were originally designed for the upper-middle class and very rich, creating
destinations for one-stop vacationing.
•To survive, some resorts provide meeting and banquet facilities in order to stay profitable
all year round.
 Report Section Information
Geographic and economic: available market and
Market Area workforce, channels of distribution, existing
attractions.
Competitors: competition's concept, current
Competition operations, and future goals
Geographic and legal: infrastructure, zoning
Site regulations, environmental measures
Target market and demographics: market share,
Demand trends, pricing strategies.
Hotel type and design: layout, construction, efficiency
Facilities & Services and cost of equipment.
Economic feasibility: proposed budget, start-up costs,
Financial Estimates projected revenues.
•Deciding to enter the hotel business is a big step involving the commitment of large
amounts of time, money, energy and other resources.
•Developers turn toward investors for part or all of the financial backing needed.
•Commitment of development, pre-opening, and operating costs is necessary before
construction begin

•Investment practices change with the economic tide.

•Constructing new facilities was a good investment practice in the 1980’s; buying and
renovating an existing structure was a better option for the 1990s.
•A rule of thumb devised many years ago by prominent hotel architect suggested that $1
should be charged in room rate for every $1000 spent in the construction of the room.

•While this is not an exact figure, it does indicate the amounts of money involved in hotel
development. Today, the rising costs of operating a hotel have manipulated the numbers
so that a guest room which cost $10000 to build can no longer profitably be rented for
$10.

•Pre-opening expenses occur during the construction of the property when key personnel
are employed to plan the hotel’s operation and an advertising and/or public relations firm
is enlisted.

•These costs, plus the costs of furnishing and decorating the hotel, landscaping the
grounds, and stocking up on supplies like linens, uniforms, glass ware, and cleaning
products may add from 50 to 75 percent more to the actual construction costs.
•Hotels need a constant supply of working capital beyond the development phase. Often
the most significant expense in hotel operation involves wages, salaries and employee
benefits.
•Other expenses include advertising and marketing plus costs for running any additional
services such as recreational facilities and restaurants.

Energy Efficiency

•Given the high costs of energy, engineers specify the latest in energy-efficient
equipment for use in new hotel construction.

Security and Loss Prevention

•Theft of any kind significantly raises the cost of operating a hotel property. When it
effects guests, theft can irrevocably damage the hotels’ reputation. A hotel should have a
built-in security system especially in the back of the house.
•Another area of security is safety and protection.
•Once financing for construction has been obtain and all involved parties have
committed to the project, construction planning begins.

•Owners and managers must be involved in this planning process because they are
most familiar with guests’ needs, and because they will be the ones charged with
making the facility profitable once it opens.

•The hotel’s design must satisfy two essential needs; to provide guests with a
comfortable, safe environment in which they can enjoy their stay, and to allow hotel
staff to keep the hotel operating efficiently to meet the needs of those guests.
Front Of The House Back Of The House
•Comprises all the areas the guests will •These are the support areas. (eg;
contact, including the lobby, corridors, kitchen, housekeeping areas,
elevators, guest rooms, restaurants, laundry and etc.
bars, and restrooms. •The front of the house is completely
•It must be designed to sell the hotel to dependent upon the smooth
potential customers. operation of the back of the house.
•“The architecture of the lobby may grab •Efficiency and control are the main
their initial interest, but it’s the guest objectives for the back of the house.
room that keeps them coming back” •Architects must plan for the smooth
•Other areas in the front of the house operation of the hotel without
must be just as well planned. revealing its working to the guest.
•Hotel meeting facilities must also be •The plan must also enable
carefully design to meet the employees to enter and exit the
conventioneers needs for audiovisual building as well as to perform their
equipment, large exhibition space and work out of sight of hotel guests.
variety of meeting rooms.
•The facility must be accessible both in term of its location, and it terms of the facility
design, which include security, independence, safety and comfort.

•All guests want to feel a sense of security when staying in a hotel, they will also ultimately
stay where they feel most secure.

•Guests also want to feel independent. Simple amenities like easy-to-turn door handles and
lowered light switches may help youngsters and guests with limited mobility operate more
independently.

•Safety, a third design consideration, is essential for both guests and employees, providing a
well maintained property aid in the safety of all persons in the hotel.

•Finally, all guests expect to be comfortable. Attaining that comfort is really a combination
of design elements and hospitality services, but care must be taken to ensure that all guests
are extended such comforts equally.
• Ambiance is the complete impression a lodging facility gives to its guests.

•When planning a hotel or its renovation, designers create an image that carries out the
initial conceptualization. From the choice of building materials to the color of the
carpeting or tile.

•This image will become the theme of the entire property.

•Ambiance tells guests whether they are in an economy or luxury property; it makes
them feel at home or uncomfortably in new surroundings; and it can make the difference
between whether a guest returns to the property or stays somewhere else.