hotels & serviced apartments · 2018-11-05 · delivering hotels, resorts and serviced...

Area Benchmarking

w w w. r e i d c a m p b e l l . c o m

H O T E L S & S E R V I C E D A P A R T M E N T S

2 3www.reidcampbell.com

Sydney Office

Level 15

124 Walker Street

North Sydney, NSW 2060

Australia

T: +61 (0) 2 9954 5011

F: +61 (0) 2 9954 4946

E: [email protected]

W: www.reidcampbell.com

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C O N T E N T S

AREA BENCHMARKING

2 STAR AREA BENCHMARKING


BUILT AREA DEFINITIONS


SERVICED APARTMENTS AREA BENCHMARKING

BUILDING FORMS


45www.reidcampbell.com

Area BenchmarkingSTUDY PARAMETERSFor over 50 years Reid Campbell has been involved in more than 200 projects across 11 countries. Our services have included planning, designing and delivering hotels, resorts and serviced apartments of all types, for both global brands and individual investors.

This Area Benchmarking Guide has been prepared to assist developers and investors in evaluating site opportunities,at a preliminary feasibility stage, and to review proposed schemes for design efficiency.

The objective of the guide is to calculate the approximate Gross Built Area of a development based on site constraints, planning controls, and project objectives. The analysis includes assessing the optimum number of rooms and brand standards prior to undertaking any design work, serving as a useful check on the spatial, and therefore cost efficiency of a scheme proposal.

SCOPEFor simplicity, we have based this study on properties of approximately 250 rooms. A decrease in room numbers may result in a reduction in efficiency, while an increase in room numbers may improve efficiency.

Hotel types have been “graded” as 2, 3, 4 and 5 star, using the common understanding of the hotel star rating system, as described by Star Ratings Australia (www.starratings.com.au).

EXCLUSIONSIntricate and non-typical hotel types such as retrofit, heritage, boutique, resorts and casinos have been excluded from this study as the planning around these cannot be refined into a standardised form.

For the purpose of identifying the correct data relating to Hotels and Serviced Apartments, this study has excluded typical podium inclusions that enhance the development such as retail tenancies, mixed use developments and non-brand standard amenities.

A R E A B E N C H M A R K I N G | H O T E L S & S E RV I C E D A PA RT M E N T S

LANDMARKSSome locations and sites justify buildings of striking form and finish to create “LANDMARKS”. Efficiency may diminish by 5% to 20% to achieve a landmark form, however this has to be assessed against the market and pricing benefits of “landmark status”.

MIXED USE There is a growing trend in the development of hotel led mixed use developments, particularly in core CBD locations. Whilst complimentary uses collocated can be of benefit to a hotel, the main reason we are seeing this trend is to enable the completed asset to compete with other investment classes, in particular residential and commercial office developments. We have excluded such mixed use analysis from this report.

PLANNING AND SITE DUE DILIGENCEThis report does not take into consideration planning controls which can vary considerably between local government areas. Similarly, in many jurisdictions there is a conflict between the essential need for car parking for a hotel (primarily non-core CBD) and a bias for vehicle reduction - and conversely in some locations an over-requirement for on-site parking is often mandated where ample alternate transport infrastructure already exists.

When undertaking preliminary site due diligence, developers should give strong consideration to essential planning criteria (e.g. height limits, setbacks, density, view corridors, bonuses etc) as well as basic desktop site constraint analysis (e.g. easements and incursions, ground stability and contamination, adequacy of services, heritage and the like) when assessing the suitability for a hotel development.

TRENDS Emerging trends and ever increasing customer expectations are influencing hotel design and development. Whilst integration of technology is a key driver, social and generational influences are also pushing innovation and product differentiation. Whilst this report does not examine these elements in detail, we have provided some global commentary throughout which seeks to inform the reader of some of these considerations.

HOW TO USE THIS GUIDE

Consider the site constraints and opportunities, planning controls, location drivers and demographics

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Select the most efficient building form suitable for the site

Select a star rating product type based on market research

Divide the estimated permissible developable area by the average area per room to estimate total room count

Contact Reid Campbell for further advice relating to planning, project feasibility and next steps

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Built Area Definitions Building Forms

A R E A B E N C H M A R K I N G | H O T E L S & S E RV I C E D A PA RT M E N T S A R E A B E N C H M A R K I N G | H O T E L S & S E RV I C E D A PA RT M E N T S

PLANT AND MECHANICAL Allows for the normal mechanical, hydraulic and fire services including tanks etc, electrical including communications and switch rooms as well as sub-stations, lift motor rooms and limited energy conservation systems to operate the building.

EXTERNAL WALLMost area measurements are taken to the centre line of walls. The area of the perimeter wall outside the “centre line” is frequently overlooked and can add 2% to 4% to gross built area.

NET ROOM AREA Measured to wall centre lines, is normally set by brand standards and includes the bathroom, entry lobby and habitable area. The benchmarks allow for the incremental increase of room area to allow for accessible rooms in 2 star to 4 star properties.

CIRCULATIONIncludes the corridors connecting rooms and the lift lobby, lift shafts and fire stairs on guest room floors only.

SERVICES Refers to the typical room floor levels and includes housekeeping/ linen rooms and service risers and shafts.

FRONT OF HOUSE Includes the hotel foyer / lobby, reception and guest lounges, bars, restaurants, lift lobbies, gyms, conference and function rooms, and guest amenities.

BACK OF HOUSEIncludes goods and waste delivery, loading and storage, staff amenities, kitchens and food prep pantries, beverage storage and cool rooms, housekeeping operations and stores, cleaning facilities, hotel administration and sales offices

1 SINGLE LOADED

Consisting of one side of rooms opposing the core and fire stairs. Applicable to narrow and restricted sites with relaxed height restrictions usually in CBD locations.

2 DOUBLE LOADED

Rooms opposing on either side of a corridor in, I, U, E, T or + floor plate configuration, ranging between 20-40+ rooms per floor. This configuration is most appropriate to larger sites, excepting the I format with around 26 rooms per floor, which works well in CBD locations in high rise format.

3 CENTRAL CORE

Surrounding corridor and perimeter rooms. The form of the building may be square, rectangular, circular or triangular, although the best efficiency is achieved from a square or rectangular shape. Most appropriate to mixed use developments combining a hotel with commercial or residential uses.

4 CURVILINEAR TOWERS

Essentially ‘double loaded’ are only appropriate for 4 + stars or higher. The wedge shape of the rooms prohibits small room areas and generates some inefficiency.

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This study is focussed on properties developed in urban locations where land is at a premium, not resorts and country house hotels. There are limited options for building form.

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2 Star Hotels 2 Star Area Benchmarking


Front of House

SINGLE LOADED10 KEYS PER FLOOR

CENTRE CORE26 KEYS PER FLOOR

DOUBLE LOADED20-40 KEYS PER FLOOR

Back of House

Services

35m2

30m2

25m2

20m2

15m2

10m2

5m2

0m2

Circulation

Net Room Area

External Wall

Plant & Mechanical

PLANT & ENGINEERING 0.6m2 2% 0.6m2 2% 0.6m2 2%

EXTERNAL WALL 1.0m2 3% 1.5m2 6% 1.0m2 4%

NET ROOM AREA 16m2 52% 15.5m2 59% 16.0m2 59%

CIRCULATION AREA 9.4m2 30% 6.0m2 23% 6.5m2 23%

SERVICES 2.9m2 9% 1.5m2 6% 2.2m2 8%

FRONT OF HOUSE 0.5m2 2% 0.5m2 2% 0.5m2 2%

BACK OF HOUSE 0.5m2 2% 0.5m2 2% 0.5m2 2%

AVERAGE AREA PER ROOM 30.9m2 26.1m2 27.3m2

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OVERVIEWBudget Hotels focus on the needs of price conscious travellers. Guest services and facilities are typically limited to maintain affordable and competitive rates and generally a net room area of 15m2 to 18m2 is considered standard. However, this does not account for “cocoon” or “capsule” style hotel rooms which are often positioned in this segment but are targeted at a wider demographic.

ROOMSTypical room finishes, furniture and fittings are basic with a focus on providing a clean and comfortable setting.

GUEST SERVICESGuest common areas and services are minimal with front of house facilities such as reception, casual dining and meeting areas integrated into a flexible space for efficiency.

Food and beverage offerings are minimal and often limited to a basic buffet style continental breakfast or “grab and go” platform, with vending machines being available for “snacking”.

DESIGNBudget hotels are designed with spatial efficiency being top of mind. The judicious selection of materials and finishes are paramount in creating highlights that optimise the guest experience.

THE FUNDAMENTALSWhether it be for business or leisure, guests use hotels as a place to sleep while travelling. Getting the fundamentals right ensures a quality guest experience:

• A comfortable bed

• Cleanliness

• Safety

• Quality and Value

• Infused technology

• Warm and welcoming staff

No matter the star range, the quality of the room is generally the most important element to the guest overriding common areas.

DESIGNAs the 3 Star product is generally focused on short stay business and leisure customers, the design should be focused on catering to the real needs of guests such that they derive value from the quality of the accommodation rather than features or services that they are unlikely to use.

Good quality materials and accent design throughout the guest rooms and public spaces are essential, with emphasis on “touch-down” points. Lighting and other sensory elements can be incorporated to enhance the guest experience.

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Front of House

Back of House

Services

40m2

35m2

30m2

25m2

20m2

15m2

10m2

5m2

0m2

Circulation

Net Room Area

External Wall

Plant & Mechanical

PLANT & ENGINEERING 1.2m2 3% 1.2m2 4% 1.2m2 3%

EXTERNAL WALL 1.6m2 4% 2.0m2 6% 1.1m2 3%

NET ROOM AREA 18.5m2 49% 17.5m2 52% 18.5m2 53%

CIRCULATION AREA 9.5m2 25% 7.0m2 21% 7.2m2 21%

SERVICES 3.1m2 8% 1.8m2 5% 2.6m2 8%

FRONT OF HOUSE 1.8m2 5% 1.8m2 5% 1.8m2 5%

BACK OF HOUSE 2.2m2 6% 2.2m2 7% 2.2m2 7%

AVERAGE AREA PER ROOM 37.9m2 33.5m2 34.6m2



DOUBLE LOADED20-40 KEYS PER FLOOR

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OVERVIEW3 Star Hotels have emerged as a dominant mid-market product, aiming to mirror quality brand attributes of higher range hotels in a limited service environment.

This leads to the provision of a compact room with an average net room area of 18m2 to 20m2 incorporating design and physical qualities that exceed above-average accommodation needs and are focused on being “fit-for-purpose” to match guest expectations in this segment.

ROOMSTypical rooms will consist of a standard queen size bed or twin single configuration, a good quality compact bathroom and joinery, as well as a work setting. In room amenities are simple and minimal to maximise servicing cycle times.

GUEST SERVICESGuest common areas and services are limited with front of house facilities such as reception, café/bar, casual dining and lounge areas integrated into a flexible space for efficiency.

Some small meeting rooms, a business zone, communal gymnasium and laundry may be included.

Food and beverage offerings are also limited and often focused on a breakfast service only presented as a continental style buffet with a minimum number of hot food items. At other meal times a limited re-heat menu may be provided. “Grab and Go” platforms and vending machines are also incorporated.

TREND – INSPIRATIONHotels have evolved into places where people collaborate and socially interact and hence the flexible open style of the 3 Star segment has great appeal. The design of public spaces needs to inspire and spur creative thinking. When executed succesfully, guests view well-designed and connected communal spaces as a reflection of overall quality, however if these spaces feel more opulent than the brand and its offering, it can be perceived as wasteful.

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Front of House



CURVILINEAR26 KEYS PER FLOOR

DOUBLE LOADED40+ KEYS PER FLOOR

Back of House

Services

60m2

50m2

40m2

30m2

20m2

10m2

0m2

Circulation

Net Room Area

External Wall

Plant & Mechanical

PLANT & ENGINEERING 3.0m2 5% 2.0m2 4% 2.0m2 4% 2.0m2 4%

EXTERNAL WALL 4.1m2 7% 1.8m2 4% 2.1m2 4% 2.0m2 4%

NET ROOM AREA 26.0m2 46% 25.0m2 56% 26.0m2 52% 27.0m2 56%

CIRCULATION AREA 12.1m2 21% 5.9m2 13% 8.5m2 17% 7.0m2 14%

SERVICES 4.1m2 7% 2.5m2 6% 3.5m2 7% 2.5m2 5%

FRONT OF HOUSE 4.6m2 8% 4.6m2 10% 4.6m2 9% 4.6m2 10%

BACK OF HOUSE 3.2m2 6% 3.2m2 7% 3.2m2 7% 3.2m2 7%

AVERAGE AREA PER ROOM 57.1m2 45.0m2 49.9m2 48.3m2

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1OVERVIEW4 Star Business and Leisure hotels target a superior guest experience through a wider range of facilities, enhanced by a higher service standard and design outcome.

Typically such hotels cater to a much broader traveller profile and guest rooms are more generous in size, typically with a net room area of 26m2+.

ROOMSTypical rooms will contain a queen/king bed or twin-double bed configuration, a slightly larger bathroom, good quality joinery and minibar, a work setting as well as a lounge.

There may be some variation in room sizes and types with the ability to connect rooms to form family rooms and suites.

GUEST SERVICESWhilst service levels can vary according to brand, most 4 Star Hotels will offer guests an expanded service range with a dedicated lobby and reception, an all-day dining option (with a full or limited in-room service), as well as separate lounge area, fitness room, meeting rooms, business centre, and laundry. In some warmer climates a pool may be considered.

DESIGNDesigning to the 4 Star market requires an understanding of the needs of a variety of travellers, whether it be business or leisure, millennials or boomers, as well as the increasing number of day visitors who are using the hotel for purposes other than stay.

TREND – INSPIRATIONCustomer expectations are constantly increasing when it comes to the ability to fully immerse and integrate their technology with their stay. This has gone beyond the basic “plug-and-play” approach to personal devices, and hotels that are perceived to have the “latest technology” consistently rate higher on guest experience as opposed to those without (partly because integrated technology can encourage a guest to promote their experience via digital channels). Many hotels are now adopting an “all-in” approach to technology going so far as automated check-in and key-less room entry, but owners and operators need to be mindful of maintaining relevance in the face of rapid technological change whilst also not neglecting the importance of human interaction.

DESIGN5 Star properties display excellent design quality and detail. Guest expectation dictates the product range must successfully integrate technology, luxury amenities and a striking, aspirational aesthetic.

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Front of House

Back of House

Services

90m2

60m2

70m2

80m2

50m2

40m2

20m2

30m2

10m2

0m2

Circulation

Net Room Area

External Wall

Plant & Mechanical

PLANT & ENGINEERING 7.0m2 9% 7.0m2 10% 7.0m2 10% 7.0m2 10%

EXTERNAL WALL 3.3m2 4% 2.2m2 3% 2.3m2 3% 2.8m2 4%

NET ROOM AREA 36.4m2 46% 34.6m2 50% 35.5m2 48% 36.5m2 49%

CIRCULATION AREA 13.8m2 17% 8.1m2 12% 10.5m2 14% 9.8m2 13%

SERVICES 4.8m2 6% 3.2m2 5% 5.2m2 7% 4.1m2 6%

FRONT OF HOUSE 7.6m2 10% 7.6m2 11% 7.6m2 10% 7.6m2 10%

BACK OF HOUSE 6.2m2 8% 6.2m2 9% 6.2m2 8% 6.2m2 8%

AVERAGE AREA PER ROOM 79.1m2 68.9m2 74.3m2 74.0m2

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CURVILINEAR26 KEYS PER FLOOR

DOUBLE LOADED40+ KEYS PER FLOOR

OVERVIEW“De Luxe” or “International” standard hotels for business and tourism offer guests an extensive range of facilities as well as comprehensive and highly personalised services.

Whilst the product varies from brand to brand, this quality range will see an average minimum net room area of some 32m2.

ROOMSTypical rooms offer guests a king size or twin double/queen configuration, high quality finishes and fittings including joinery, floor and wall coverings, generous bathrooms with twin vanity and separate shower and bath, as well as a more extensive mini-bar and lounge.

There will often be a variation in room types and sizes throughout the hotel to cater to a wide array of customer types and needs.

GUEST SERVICES5 Star Hotels emphasise first impressions on arrival through large lobby and reception areas, concierge and multiple front of house staff. Subject to the size of the hotel, it will likely offer more than one a-la-carte dining option for guests as well as separate lounge bar and café.

Other services typically include a business centre, meeting rooms, conference facilities, ballrooms, larger fitness and gymnasium facilities, swimming pools and other amenities.

TREND – INSPIRATIONDesign that connects the spaces in a meaningful way enhances the guest experience and brings authenticity to the brand. This may be achieved when the overarching context incorporates local neighbourhood themes and cultural styles. Authenticity can also be created through spaces that feel more personal and homely.

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Serviced Apartments Serviced Apartment Benchmarking


Front of House

LOW RISE DOUBLE LOADED30 KEYS PER FLOOR

MID RISE DOUBLE LOADED21 KEYS PER FLOOR

Back of House

Services

80m2

60m2

70m2

50m2

40m2

20m2

30m2

10m2

0m2

Circulation

Net Room Area

External Wall

Plant & Mechanical

PLANT & ENGINEERING 2.6m2 4% 4.0m2 5%

EXTERNAL WALL 2.9m2 5% 2.0m2 3%

NET ROOM AREA 42.9m2 68% 49.0m2 67%

CIRCULATION AREA 7.9m2 13% 8.5m2 12%

SERVICES 1.1m2 2% 1.8m2 2%

FRONT OF HOUSE 2.7m2 4% 3.5m2 5%

BACK OF HOUSE 2.6m2 4% 4.5m2 6%

AVERAGE AREA PER ROOM 62.7m2 73.3m2

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2OVERVIEWServiced apartments offer a range of accommodation types for varying demographics, short to long term stays, for both business and leisure customers. We have not applied a star rating to serviced apartments but based our assumptions on average apartment sizes and mix:

• Studio = 30m2

• 1 bed = 50m2

• 2 bed = 70m2

• 3 bed = 80 + m2

Guest facilities such as function / meeting rooms, food and beverage facilities and fitness centres vary significantly between brands. We have applied an average of these areas across brands on a limited service basis.

We have also focused on serviced apartments as a stand-alone product, and not as a hybrid “apart-hotel”, a dual-branded or mixed use development.

Design quality is often akin to the 3 and 4 Star or “mid-market” hotel ranges but typically sees a stronger alignment to a more residential setting to create a sense of permanence.

FEASIBILITYLike any accommodation product location is key, however in our experience serviced apartments can feasibly compete with hotels whilst being located further away from key demand drivers.

The reason for this is that whilst serviced apartments may typically achieve slightly lower Average Daily Rates (ADR) in comparison to their hotel counterparts, this is frequently offset by strong and sustained occupancy levels which result in a competitive Revenue per Available Room (RevPar).

When coupled with the opportunity to develop serviced apartments on comparably lower value land this can make them an attractive investment alternative.

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About Reid Campbell


Capability Overview

Reid Campbell is an architecture, design and planning firm focused on delivering superior outcomes for clients in the property and infrastructure sectors.

We are driven to constantly grow our expertise through research and industry engagement, pushing our designs and striving for constant improvement.

OUR APPROACH We employ some of the most creative minds in the industry and our business will always reflect their clear, dynamic thinking. Our commitment to investing in greater knowledge, research and expertise across all sectors supports this ethos. We work in teams focused on particular industry sectors and led by experts in that area.

Thanks to this deep investment in specialist expertise, our ‘knowledge network’ is available to all levels of the business and keeps us abreast of the latest materials and construction techniques. Our teams are supported to adopt innovative approaches to problem solving, ensuring we lead the way in the realisation of fine crafted, coherently beautiful buildings.

WHY REID CAMPBELL From day one, we work to discover our client’s needs and objectives and create a framework for shared success. It’s an approach that has been met with approval from industry players, demonstrated by our continued involvement in a range of rewarding and challenging projects.

Reid Campbell operates throughout Australia and on select projects in New Zealand. We also work regularly with the UK-based practice Chapman Taylor on significant and international projects across Asia and Europe. It’s a positive collaboration that allows us to draw on particular expertise to meet the demands of specific projects.

OUR SECTORS:• Accommodation

• Industrial & Infrastructure

• Commercial & Mixed-Use

• Master Planning

Level 15 124 Walker Street

North Sydney, NSW 2060 Australia

T: +61 (0) 2 9954 5011

F: +61 (0) 2 9954 4946

E: [email protected]

W: www.reidcampbell.com

The information and opinions represented in this document are a product of the direct experience and research undertaken by Reid Campbell.

This document is to be used as a guide only and Reid Campbell does not provide any warranty or accept any liability, express or implied,

as to the suitability of its use by any party. All images are indicative only. Copyright Reid Campbell 2018.

hotels & serviced apartments · 2018-11-05 · delivering hotels, resorts and serviced...

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