Boutique Design - January/February 2009 - (Page 46)

POINT OF VIEW Four Reasons WHY the Time is Right for Hotel Development BY JEFFREY S. DEGEN, AIA The economy has taken its toll on development, especially in the hospitality world, but many are overlooking the silver lining — no matter how difficult it may be to find. Certainly the ability to obtain financing is a factor for many, but beyond that, many projects have been put on hold or cancelled as a reaction to current conditions. Here are a few reasons why that project should be taken off the shelf and put back on the table. BE THE FIRST OUT OF THE GATES WHEN THIS IS ALL OVER Hospitality is cyclical, as we all know too well, and while this may still feel like the beginning of a down cycle, it isn't going to last forever. Project planning takes time. Even a medium-sized project can take six to eight months to design and upwards of a year for entitlements. Those who are able to start now will be the first out of the gates when the time is right, and will be in the best position to reap the benefits of an early start. one expanded their off-shore manufacturing operations bringing costs down and product quality up compared to just a few years ago. While lead times have not improved greatly (and may not) quality and consistency of product are certainly increasing. AVAILABLE NOW three THE BEST TALENT IS CONSTRUCTION AND FF&E COSTS ARE DOWN A year ago contractors were turning work away. We had difficulty even raising contractor interest for large, high-profile projects. They were just plain too busy; overcommitted. Those tables have turned. Contractors are now calling us looking for work, anything to fill their backlog for 2009, anything to hold on to their people. We've heard from more than one contractor and sub that bids are now 15 to 18 percent lower than earlier this year. Profit margins had grown to unprecedented levels, just due to supply and demand. That's all changed. FF&E has a bright side too. More reputable vendors have 46 • boutique DESIGN january/february 2009 two Not only are the best contractors now available, but the best design teams are too. Many design firms have already had to reduce their staff levels, but this has left leaner firms filled with their best people. This is a great opportunity to get stellar service out of top firms that even recently were turning work away. MARKET SHARE four RENOVATE NOW TO IMPROVE Guests are likely to be more sensitive to value than ever. Properties that are in like-new condition will hold an edge over tired ones. Coming out of the cycle, properties on the leading edge of renovation will be the first in line to capitalize on new demand.

Table of Contents for the Digital Edition of Boutique Design - January/February 2009

Boutique Design - January/February 2009
Boutique Buzz
Designer’s Eye
Ian Schrager on Edition, His Partnership with Marriott
Business Sense
Niche. Improvement. Escape. The State of the Industry: Now and the Future
Industry Research
Three Firms Fight On
The Do’s and Don’ts of Networking
Simeone Deary Design
Haute Suites
Shopping the Market: Tabletop
Shopping the Market: Seating
Jeffrey S. Degen, AIA On Reasons Why the Time is Right for Hotel Development
Wanda Jankowski Speaks to Karen Daroff about Bathroom Trends
Calendar/ Advertisers Index

Boutique Design - January/February 2009