HOTEL COST ESTIMATING GUIDE

JN AandHVS DESIGNHOTEL COST ESTIMATING GUIDE2 0 1 7Copyright 2017 Jonathan Nehmer Associates, Inc. and HVS Design All rights reserved

TABLE OF CONTENTSHOTEL COST ESTIMATING GUIDE 2017Guide to the Cost Guide .6About the Cost Guide .8Cost Estimating Summary Sheets .10Cost Estimating Tables by Hotel Tier .13Economy .13Extended Stay .19Midscale .31Upscale .43Upper Upscale .59Luxury .75Industry Insights .91An Architect’s Added Value .92Design Trends for the Hospitality Industry .93Steady As She Goes .94Dropping Trailers on Site .95Freight and Warehouse Pricing .98Sponsor Recognition.101Glossary of Terms .107Contact Information .123JN A and HVS DESIGN HOTEL COST ESTIMATING GUIDE 20175

GUIDE TO THE COST GUIDEby Warren G. FeldmanCEO of JN A Principal of HVS DesignThe 2017 Hotel Cost Estimating Guide is the ninth edition of this comprehensive planning tool. JN A and HVSDesign developed the Guide to examine construction and FF&E costs for renovations in each hotel tier. TheGuide is intended to be just that - a guide to help provide approximate costs for your softgoods or full renovationwith flexibility to customize your preliminary budget to fit your scope. As with any generic budgeting tool, the finalcosts for a specific project should be developed on a case specific basis. Below are some tips to aid in directingyou to get the most out of this helpful tool.OverallThe Guide is divided into six hotel tiers. Each tier has an assumed hotel size and configuration from which thecost data is derived. The assumptions are a way for you to compare against your property to help determinewhich tier and hotel size it fits.Once you have selected a hotel tier, you should determine if you want a quick budget number or want to developa more detailed version of the budget. For quick numbers use the summary pages (Pages 10 and 11). If youwant a detailed budget, then use the detailed numbers within the tier you have selected.The next step is to apply the scope of your renovation to the forecasted numbers, having determined which tieryour hotel falls under and determined your scope of work for the renovation. Let’s assume you have a six-story,200-room hotel that needs a softgoods guestroom renovation, but you are planning to keep the artwork, lighting,and soft seating. Due to the type of hotel, you know that your project falls under the Upper Upscale tier.Softgoods RenovationFor a quick preliminary budget using the summary page only, you would use the guestroom softgoods renovationprice for an Upper Upscale hotel in the cost range of between 7,620 and 10,383. Now, skip ahead to theadjustments section.For a more detailed budget you would skip ahead to the Guestroom Softgoods Renovation for the Upper Upscale(page 60) category, you should highlight each item that you are replacing including demo and FF&E installation.Each item has a cost range (low to high) and an average cost. Utilizing the average cost number will provide youwith the general idea of the cost. Add up the select items needed for your renovation and multiply by the numberof keys. This number will provide you with an approximate idea of how much it will cost to do a basic softgoodsrenovation including construction and FF&E.Guestroom Softgoods RenovationAssume guestroom area of approximately 15' x 24', plus 8' x 8' bathroom and 7' x 8' entry / closet area (472 SF). Ceilings 9'-0" AFF. Painted drywall.RANGEDemolitionFF&E InstallationArtwork, Mirrors, and Accessories (Installed Package)Full-height Framed Dressing MirrorBed Skirt or Box Spring CoverDecorative PillowCarpet and PadDesk LampFloor LampEnd Table LampNightstand or Bracket Lamp (2)Welcome Light (in Existing Location)Desk Chair (including Fabric)Lounge Chair (including Fabric)Ottoman (including Fabric)Sleeper Sofa (including Fabric; assumes King Rooms only)Paint Textured or Drywall CeilingPaint Trim (Base and Crown)Paint Entry Doors, Closet Doors, Frames, and GrillesVinyl Wallcovering (LY 54")Window Treatments (Sheer, Blackout, Hardware Installed)Guestroom Softgoods Renovation Cost Per Key6 299.75 337.90 368.31 198.31 150.00 91.80 894.56 140.00 260.00 250.00 300.00 188.50 260.00 540.00 260.00 410.00 305.76 232.30 245.25 1,417.80 470.00tototototototototototototototototototototo 400.58 408.75 619.45 294.21 180.00 124.20 1,043.31 180.00 350.00 330.00 420.00 293.24 360.00 740.00 350.00 550.00 428.06 371.68 392.40 1,766.92 780.00AVERAGE 359.77 373.78 493.60 245.45 165.00 108.00 946.60 160.00 303.33 290.00 360.00 231.64 310.00 640.00 303.33 480.00 381.83 318.59 311.63 1,592.63 623.33 7,620.24to 10,382.79 8,998.51JN A and HVS DESIGN HOTEL COST ESTIMATING GUIDE 2017

GUIDE TO THE COST GUIDEby Warren G. FeldmanCEO of JN A Principal of HVS DesignAdditional Renovation / Full RenovationThe Cost Guide provides an additional level of renovation costs in the event you want to do a full renovationor even additional elements of a full renovation. Armed with your softgoods renovation cost, you decide youalso want to replace the beds, add a tile foyer to the entry, and get new televisions. Under the Upper UpscaleGuestroom – Add for a Full Renovation category (page 60), you should highlight the three additions to yourscope. Add the average costs associated with each line item.Guestroom - Add for a Full RenovationRANGEBedsets (Box Spring, Mattress and Frame)Entry Area Hard Surface FlooringTV and Mount (HD LCD, incl. Programming, Allowance)Guestroom Full Renovation Additional Cost Per Key 795.00 834.40 1,200.00tototo 2,829.40to 1,065.00 1,037.68 1,355.30AVERAGE 930.00 931.77 1,278.78 3,457.98 3,140.55Take the additional renovation costs and add them to your total softgoods number (before you multiplied by thenumber of keys). Take the combined total of the softgoods and additional renovation item total and multiply thatnumber by the number of keys to get the total construction and FF&E cost for your proposed renovation.Total Guestroom Renovation CostRANGEGuestrooms Softgoods Renovation Cost Per KeyGuestroom Full Renovation Additional Cost Per KeyTotal Construction and FF&E Cost Per Key 7,620.24 2,829.40toto 10,382.79 3,457.98AVERAGE 8,998.51 3,140.55 10,449.64to 13,840.77 12,139.07AdjustmentsOnce you have the construction and FF&E costs for your project, you also need to account for things not includedin the costs above. As stated in the Cost Guide, these costs do not include Professional Fees, Contingency,Operating Supplies Equipment, Attic Stock, Freight or Sales Tax, the Contractor’s General Conditions,Overhead and Profit, etc. Typically, the design cost of a project including the Architecture, Interior Design, ProjectManagement, and Procurement make up about 10% of the overall budget. The freight and tax vary greatly bylocation and should be adjusted based upon your specific location. For the freight and tax calculation, assumethat the FF&E costs are 50% of the costs of the construction and FF&E. For our sample project, we will assumeit is a Midwestern location with 6% state and local tax. You also need to apply a contingency to the budget. If youare doing a quick budget, you might apply 15% and with detailed version might be 10%.Adjustments for Preliminary BudgetRANGECosts for Guestroom Renovation from the Summary PageConstruction Markups (18% of Construction)Freight and Tax (6%-8%)Professional FeesContingency (15%)Total Construction and FF&E Cost Per Key 7,620.24 685.82 228.61 853.47 1,408.22 10,796.36Adjustments for Detailed Budgettotototototo 10,382.79 934.45 415.31 1,173.26 1,935.87 14,841.68RANGECosts for Guestroom Renovation from the Detail PagesConstruction Markups (18% of Construction)Freight and Tax (6%-8%)Professional FeesContingency (10%)Total Construction and FF&E Cost Per Key 10,449.64 940.47 313.49 1,170.36 1,287.40 14,161.36totototototo 13,840.77 1,245.67 415.22 1,550.17 1,705.18 18,757.01AVERAGE 8,998.51 809.87 314.95 1,012.33 1,670.35 12,806.01AVERAGE 12,139.07 1,092.52 364.17 1,359.58 1,495.53 16,450.86About the AuthorMr. Feldman has expertise in all facets of Project Management, Architecture, Interior Design, Design Management, andConstruction Administration. His experience includes work as Architect and Owner’s Representative in the directionand management of commercial, institutional, educational, residential, and hospitality projects. Complementing hiseducation in Architecture, Mr. Feldman completed his Juris Doctorate from Georgetown University in December 1998and is a member of the Maryland Bar.JN A and HVS DESIGN HOTEL COST ESTIMATING GUIDE 20177

ABOUT THE COST GUIDESPONSORS2017 COST GUIDE SPONSORSJN A and HVS Design7361 Calhoun Place, Suite 310Rockville, MD 20855ph: 301.670.1635info@nehmer.com designinfo@hvs.comnehmer.com hvsdesignservices.comBejamin West428 CTC BoulevardLouisville, CO 80027ph: .comAudit Logistics1172 Century Drive, Suite 245Louisville, CO 80027ph: s.comLand-Ron Inc.6753 Kingspointe Pkwy, Suite 109Orlando, FL 32819ph: eliance Construction333 NE 2nd StreetDelray Beach, FL 33483ph: lied Group1715 Highway 34Farmingdale, NJ 07727ph: 732.751.2522info@addastar.comaddastar.comHumphrey Rich10200 Old Columbia Road, Suite KColumbia, MD 21046ph: comThank you to Sigal Construction who also contributed data to this year’s Guide.The JN A and HVS Design Team would like to thank the above General Contractors, Purchasing Agent, andLogistics Firm for the large amount of time they volunteered to provide us with unit cost data for each of thecategories and sub-categories included in the Guide. JN A and HVS Design have successfully worked witheach of these firms on past projects. All of them are well-known, regionally- or nationally-based contractorsthat specialize in the hospitality industry. These organizations are acutely aware of the crucial need for efficientoperation in hotels with regard to noise and guest satisfaction, as well as the primary need to produce complete,guest-ready hotel rooms, broad areas of costs that will likely apply to most types of hotel renovations, and canprovide preliminary insight when planning for such work.8JN A and HVS DESIGN HOTEL COST ESTIMATING GUIDE 2017

ABOUT THE COST GUIDETIERS, CRITERIA, AND CATEGORIESHOTEL MARKET TIERS MODEL HOTEL CRITERIALine 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/floorExtended Stay 150 guestrooms, 4 stories (all with guestrooms), 38 rooms/floorMidscale 135 guestrooms, 5 stories (all with guestrooms), 27 rooms/floorUpscale 304 guestrooms, 9 stories (8 with guestrooms), 34 rooms/floorUpper Upscale 192 guestrooms, 25 suites, 7 stories (6 with guestrooms), 31 bays/floorLuxury 200 guestrooms, 20 suites, 6 stories (5 with guestrooms), 37 bays/floorCOST CATEGORIESRenovation 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 CorridorsPublic SpacesFood Beverage OutletsFunction SpacesRecreational FacilitiesInfrastructureCommon AdditivesWhen using this Guide, please note that since project-specific conditions will affect the final cost of everyrenovation project, this Estimating Guide will not include all costs for each hotel renovation. Costs such asProfessional Fees, Contingency, Operating Supplies Equipment, Attic Stock, Freight, Sales Tax, etc. have notbeen included. However, this Guide does identify broad areas of costs that will likely apply to most types of hotelrenovations and can provide preliminary insight when planning for such work.JN A and HVS DESIGN HOTEL COST ESTIMATING GUIDE 20179