Today's Hotelier - October 2016 - 38
DEVELOPMENT & RENOVATION
approval. Some building
shells and dimensions may
not fit the prototypical room
criteria of certain brands.
For example, a building
may work for extended
stay, but not full-service,
or vice versa. The market
may not be conducive for
a particular brand or the
desired brand may not be
available. We have found
that franchisors will do
their best to accommodate
less-than-ideal footprints if
the location is desired by the
brand and the developer/
sponsor is a partner with
whom the franchisor has
confidence in their ability
to develop and operate the
property in accordance with
brand standards.
Once a building has been
identified, and both the
municipality and prospective brand (if desired)
have interest, it is time to
dig deeper into a host of
due diligence and entitlement challenges before the
jackhammers and saws
are powered on. This process includes determining
the fitness of the physical
plant, i.e. structural integrity, mechanical/electrical systems functionality and
confirming the available utilities such
as water service, sewer, power and gas.
An article in itself can be written on
each of the above challenges, but let's
touch on a few of these issues.
The best candidates must begin with
a building that is structurally stable and
sound. It is good practice to engage a
structural engineer to verify the building's integrity. The mechanical, plumbing and electrical components should
also be inspected to determine their
remaining useful life. Today's mechanical and electrical systems are more
PHOTO: LIBRARY OF CONGRESS.
FORGING AHEAD
complex than 50 years ago. They are
typically smaller in size and offer energy
savings that might not have been available when the building was constructed,
let alone meet the needs of the new lodging use. Most buildings will need their
electrical systems upgraded to meet
current electrical codes. The data and
wireless communications will also need
to meet code as well as guest needs.
If readapting a building that was not
previously used for lodging, the availably of water and sewer capacity must
be verified with the local municipality.
Since lodging facilities typically have a
minimum of one bathroom per unit and
3 8 | OCTOBER 2016 | TODAYSHOTELIER.COM
additional restrooms servicing the public spaces, there
are more fixture units that
impact the utilities capacity than a typical office or
manufacturing facility.
Not having the available
capacity will impact the
number of rooms that can
be developed. Significant
cost increases will also
be incurred if the municipal utility systems require
upgrading. With cities typically having budget challenges, often this burden is
passed on to the developer.
Municipalities will be
looking closely at the need
to extend infrastructure, as
well as the impact on traffic.
In general, hotels and office
buildings have reverse traffic patterns, guest arrive
when office users are
departing. However, in a
residential area, hotels typically add to the traffic congestion, which may cause
officials and the local residents to demand an expansion of parking facilities.
ANALYZING COSTS
Labor costs are an important
consideration in all locales,
as well as the availability of
skilled trades. Some of the most attractive locations in strong major metropolitan or coastal markets may be areas
where building activity is already straining labor capacity and driving up costs.
This assumes you can find the workers
at all. Timing is everything.
How much will it cost? Total costs of
an adaptive reuse will include the cost
of financing, pre-development explorations, construction cost, both building
materials and labor, the procurement
of FF&E as well as pre-opening operational costs.
Financing for an adaptive reuse development might be a bit more expensive
http://www.TODAYSHOTELIER.COM
Table of Contents for the Digital Edition of Today's Hotelier - October 2016
Letter From the Chairman
Letter From the President & CEO
News Bytes
AAHOA Spotlight
Best Western’s New Frontier
Government Affairs
The Uneven Playing Field: Hotels & Airbnb
Finding Opportunity in the Old
Development & Renovation
Living Legends: Wisdom From Industry Trailblazers
Finance Q&A
The Latest Tech Tools for Hospitality
Guest Experience
AAHOA Events
AAHOA Founding Members
AAHOA Vendor Partners
Classifieds
Advertiser Index
Today's Hotelier - October 2016 - cover1
Today's Hotelier - October 2016 - cover2
Today's Hotelier - October 2016 - 3
Today's Hotelier - October 2016 - 4
Today's Hotelier - October 2016 - 5
Today's Hotelier - October 2016 - 6
Today's Hotelier - October 2016 - 7
Today's Hotelier - October 2016 - Letter From the Chairman
Today's Hotelier - October 2016 - 9
Today's Hotelier - October 2016 - Letter From the President & CEO
Today's Hotelier - October 2016 - 11
Today's Hotelier - October 2016 - News Bytes
Today's Hotelier - October 2016 - 13
Today's Hotelier - October 2016 - AAHOA Spotlight
Today's Hotelier - October 2016 - 15
Today's Hotelier - October 2016 - 16
Today's Hotelier - October 2016 - 17
Today's Hotelier - October 2016 - Best Western’s New Frontier
Today's Hotelier - October 2016 - 19
Today's Hotelier - October 2016 - 20
Today's Hotelier - October 2016 - 21
Today's Hotelier - October 2016 - 22
Today's Hotelier - October 2016 - 23
Today's Hotelier - October 2016 - Government Affairs
Today's Hotelier - October 2016 - 25
Today's Hotelier - October 2016 - 26
Today's Hotelier - October 2016 - 27
Today's Hotelier - October 2016 - 28
Today's Hotelier - October 2016 - 29
Today's Hotelier - October 2016 - The Uneven Playing Field: Hotels & Airbnb
Today's Hotelier - October 2016 - 31
Today's Hotelier - October 2016 - 32
Today's Hotelier - October 2016 - 33
Today's Hotelier - October 2016 - 34
Today's Hotelier - October 2016 - 35
Today's Hotelier - October 2016 - Development & Renovation
Today's Hotelier - October 2016 - 37
Today's Hotelier - October 2016 - 38
Today's Hotelier - October 2016 - 39
Today's Hotelier - October 2016 - 40
Today's Hotelier - October 2016 - 41
Today's Hotelier - October 2016 - Living Legends: Wisdom From Industry Trailblazers
Today's Hotelier - October 2016 - 43
Today's Hotelier - October 2016 - 44
Today's Hotelier - October 2016 - 45
Today's Hotelier - October 2016 - 46
Today's Hotelier - October 2016 - 47
Today's Hotelier - October 2016 - 48
Today's Hotelier - October 2016 - 49
Today's Hotelier - October 2016 - Finance Q&A
Today's Hotelier - October 2016 - 51
Today's Hotelier - October 2016 - 52
Today's Hotelier - October 2016 - 53
Today's Hotelier - October 2016 - The Latest Tech Tools for Hospitality
Today's Hotelier - October 2016 - 55
Today's Hotelier - October 2016 - 56
Today's Hotelier - October 2016 - 57
Today's Hotelier - October 2016 - Guest Experience
Today's Hotelier - October 2016 - 59
Today's Hotelier - October 2016 - 60
Today's Hotelier - October 2016 - 61
Today's Hotelier - October 2016 - AAHOA Events
Today's Hotelier - October 2016 - 63
Today's Hotelier - October 2016 - AAHOA Founding Members
Today's Hotelier - October 2016 - 65
Today's Hotelier - October 2016 - AAHOA Vendor Partners
Today's Hotelier - October 2016 - 67
Today's Hotelier - October 2016 - 68
Today's Hotelier - October 2016 - 69
Today's Hotelier - October 2016 - 70
Today's Hotelier - October 2016 - 71
Today's Hotelier - October 2016 - 72
Today's Hotelier - October 2016 - 73
Today's Hotelier - October 2016 - 74
Today's Hotelier - October 2016 - 75
Today's Hotelier - October 2016 - 76
Today's Hotelier - October 2016 - Classifieds
Today's Hotelier - October 2016 - 78
Today's Hotelier - October 2016 - 79
Today's Hotelier - October 2016 - 80
Today's Hotelier - October 2016 - 81
Today's Hotelier - October 2016 - 82
Today's Hotelier - October 2016 - 83
Today's Hotelier - October 2016 - 84
Today's Hotelier - October 2016 - 85
Today's Hotelier - October 2016 - Advertiser Index
Today's Hotelier - October 2016 - cover3
Today's Hotelier - October 2016 - cover4
Today's Hotelier - October 2016 - outsert1
Today's Hotelier - October 2016 - outsert2
Today's Hotelier - October 2016 - 91
Today's Hotelier - October 2016 - 92
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