Hospitality Design - November 2011 - 71

trends: purchasing

perspectives
By Stacy Shoemaker Rauen

point of purchase
As the liaison between designers/architects, owners, and vendors, purchasers have their pulse on the industry. We checked in with multiple firms that gave us the inside scoop on the hospitality climate, from Band-Aids to ridiculous timeframes.

From top: The lobby of the Palmer House Hilton in Chicago, with purchasing by Benjamin West and design by ForrestPerkins; the guestroom at the InterContinental Miami, with procurement by Neil Locke & Associates and design by the Strategic Hotels & Resorts design department.
The reasons? Money is finally available and owners want to get the work done as soon as possible, or hotels are getting new proprietors who want to make changes quickly. “They have been waiting for such a long time for the money, they want to hurry up and spend it in case something else happens,” says Ted Carroll, president of the Carroll Adams Group in Orlando, who mentions that timeshares continue to be a strong earner for his firm. But the Catch-22 is that manufacturers aren’t stocking up on raw materials and product due to the fragile economy, and they have cut staff. “When the economy hit the skids, we thought lead times would get better but in fact they more often than not got worse as companies decrease their workforce,” Parker says. Not surprisingly, owners also want the most bang for their buck. “Everyone is looking at every nickel, now more so than ever. No one hires a purchasing company to pay more,” says Benjamin, adding that it is essential to consider the cost over the life of the product, not just today’s spreadsheet cost. “They want the lowest cost for the expected product life.” That’s true for stateside and international projects. “The trick in the Middle East is that everything is 5-Star except for the budget,” says Carroll. One solution, Shulman notes, is finding alternative ways to save. “We have been doing more evaluation work, seeing if we can save on general conditions with the contractor, doing some buyout on plumbing, doors, and appliances. We are expanding the envelope to find where there are more potential cost savings.” In some cases, the funds needed may not all be available or new owners don’t want to decrease their revenue stream by taking all of their rooms off the market. As a result, many hotels are phasing out renovations, which is not always cost effective. “The price of materials will change and they won’t get quantity breaks,” explains Shulman. “They will save some upfront, but not in the long-run.” As a result, at the LAX Hilton, with raw material costs “skyrocketing” for carpet, he locked in

On the Rebound
“A supplier of ours recently said, ‘We are literally slammed—the market isn’t creeping back, it’s surging back,’” says Neil Locke, founder of Itasca, Illinois-based Neil Locke & Associates. Some aren’t as optimistic, but the resounding consensus is that the market is picking up, with renovations seeing the biggest spike. Brands are putting heat on owners to bring their hotels up to standards, and at the same time, many hotels are changing hands. “Typically, hotels are on a five-toseven-year softgood, and an eight-to-10-year hardgood cycle, and a lot of hotels are offcycle,” explains Alan Benjamin, president of Lafayette, Colorado-based Benjamin West. “They went through the minimum renovation without being in the red zone by the brand.” Adds David Shulman, principal of Project Dynamics in Calabasas, California: “They put a Band-Aid on the work that needed to be done and now flags are pushing hard. We are starting to see some infusion of cash and CapEx monies beginning to be spent.” Another factor for the redos: as occupancy rates and business travel continue to increase, hotels need to renovate to stay competitive— old carpet mixed with new drapes isn’t going to cut it. “You have to have a better product in a soft market to compete,” Benjamin says. “The guest is so much more sophisticated. You can’t fool them. It’s like test-driving a car with 280,000 miles on it. You don’t want it just because it is cheaper.” But just because purchasers are seeing more bids (some as often as one a day), it doesn’t mean the projects are starting tomorrow. “The time from RFP to contract has definitely become longer,” says Mitch Parker, partner of the Parker Company in Miami.

Taking the Lead
Any change in the market comes with its difficulties. “The challenges are lead times, and continue to be lead times,” says Locke. That, coupled with shorter timelines and tighter budgets, appears to be the new normal— and no one thinks that is changing anytime soon.

www.hospitalitydesign.com

November 2011

71


http://www.hospitalitydesign.com

Table of Contents for the Digital Edition of Hospitality Design - November 2011

Hospitality Design - November 2011
Contents
Online Contents
From the Editor
From the Show Director
People
People
Sketchbook
Trends
Trends
Forecast
Interview
Interview
Jono Pandolfi
Michelle Bergeron
Chris Hardy
Fumiaki Odaka
Tania Johnson
Textiles
Bathroom Goodies
Surfaces
Flooring
Hotel Americano
Hotel Lautner
Rosewood Hotel Georgia
Renaissance Washington, DC
Dick’s Pizza and Pleasure
La Pensione
Back Space
Hospitality Design - November 2011 - Intro
Hospitality Design - November 2011 - Hospitality Design - November 2011
Hospitality Design - November 2011 - Cover2
Hospitality Design - November 2011 - 1
Hospitality Design - November 2011 - 2
Hospitality Design - November 2011 - 3
Hospitality Design - November 2011 - 4
Hospitality Design - November 2011 - 5
Hospitality Design - November 2011 - 6
Hospitality Design - November 2011 - 7
Hospitality Design - November 2011 - 8
Hospitality Design - November 2011 - Contents
Hospitality Design - November 2011 - 10
Hospitality Design - November 2011 - Online Contents
Hospitality Design - November 2011 - 12
Hospitality Design - November 2011 - 13
Hospitality Design - November 2011 - 14
Hospitality Design - November 2011 - 15
Hospitality Design - November 2011 - 16
Hospitality Design - November 2011 - 17
Hospitality Design - November 2011 - From the Editor
Hospitality Design - November 2011 - 19
Hospitality Design - November 2011 - 20
Hospitality Design - November 2011 - 21
Hospitality Design - November 2011 - 22
Hospitality Design - November 2011 - 23
Hospitality Design - November 2011 - From the Show Director
Hospitality Design - November 2011 - 25
Hospitality Design - November 2011 - 26
Hospitality Design - November 2011 - 27
Hospitality Design - November 2011 - 28
Hospitality Design - November 2011 - 29
Hospitality Design - November 2011 - 30
Hospitality Design - November 2011 - 31
Hospitality Design - November 2011 - People
Hospitality Design - November 2011 - 33
Hospitality Design - November 2011 - 34
Hospitality Design - November 2011 - 35
Hospitality Design - November 2011 - 36
Hospitality Design - November 2011 - 37
Hospitality Design - November 2011 - 38
Hospitality Design - November 2011 - 39
Hospitality Design - November 2011 - People
Hospitality Design - November 2011 - 41
Hospitality Design - November 2011 - 42
Hospitality Design - November 2011 - 43
Hospitality Design - November 2011 - 44
Hospitality Design - November 2011 - 45
Hospitality Design - November 2011 - 46
Hospitality Design - November 2011 - 47
Hospitality Design - November 2011 - 48
Hospitality Design - November 2011 - 49
Hospitality Design - November 2011 - 50
Hospitality Design - November 2011 - 51
Hospitality Design - November 2011 - 52
Hospitality Design - November 2011 - Sketchbook
Hospitality Design - November 2011 - 54
Hospitality Design - November 2011 - 55
Hospitality Design - November 2011 - 56
Hospitality Design - November 2011 - 57
Hospitality Design - November 2011 - 58
Hospitality Design - November 2011 - 59
Hospitality Design - November 2011 - 60
Hospitality Design - November 2011 - 61
Hospitality Design - November 2011 - 62
Hospitality Design - November 2011 - Trends
Hospitality Design - November 2011 - 64
Hospitality Design - November 2011 - 65
Hospitality Design - November 2011 - 66
Hospitality Design - November 2011 - 67
Hospitality Design - November 2011 - 68
Hospitality Design - November 2011 - 69
Hospitality Design - November 2011 - 70
Hospitality Design - November 2011 - Trends
Hospitality Design - November 2011 - 72
Hospitality Design - November 2011 - 73
Hospitality Design - November 2011 - 74
Hospitality Design - November 2011 - Forecast
Hospitality Design - November 2011 - 76
Hospitality Design - November 2011 - Interview
Hospitality Design - November 2011 - Interview
Hospitality Design - November 2011 - 79
Hospitality Design - November 2011 - 80
Hospitality Design - November 2011 - Jono Pandolfi
Hospitality Design - November 2011 - 82
Hospitality Design - November 2011 - Michelle Bergeron
Hospitality Design - November 2011 - 84
Hospitality Design - November 2011 - Chris Hardy
Hospitality Design - November 2011 - 86
Hospitality Design - November 2011 - Fumiaki Odaka
Hospitality Design - November 2011 - 88
Hospitality Design - November 2011 - Tania Johnson
Hospitality Design - November 2011 - 90
Hospitality Design - November 2011 - Textiles
Hospitality Design - November 2011 - 92
Hospitality Design - November 2011 - 93
Hospitality Design - November 2011 - 94
Hospitality Design - November 2011 - 95
Hospitality Design - November 2011 - 96
Hospitality Design - November 2011 - Bathroom Goodies
Hospitality Design - November 2011 - 98
Hospitality Design - November 2011 - 99
Hospitality Design - November 2011 - 100
Hospitality Design - November 2011 - 101
Hospitality Design - November 2011 - 102
Hospitality Design - November 2011 - Surfaces
Hospitality Design - November 2011 - 104
Hospitality Design - November 2011 - 105
Hospitality Design - November 2011 - 106
Hospitality Design - November 2011 - 107
Hospitality Design - November 2011 - 108
Hospitality Design - November 2011 - Flooring
Hospitality Design - November 2011 - 110
Hospitality Design - November 2011 - 111
Hospitality Design - November 2011 - 112
Hospitality Design - November 2011 - 113
Hospitality Design - November 2011 - Hotel Americano
Hospitality Design - November 2011 - 115
Hospitality Design - November 2011 - 116
Hospitality Design - November 2011 - 117
Hospitality Design - November 2011 - 118
Hospitality Design - November 2011 - 119
Hospitality Design - November 2011 - Hotel Lautner
Hospitality Design - November 2011 - 121
Hospitality Design - November 2011 - 122
Hospitality Design - November 2011 - 123
Hospitality Design - November 2011 - Rosewood Hotel Georgia
Hospitality Design - November 2011 - 125
Hospitality Design - November 2011 - 126
Hospitality Design - November 2011 - 127
Hospitality Design - November 2011 - Renaissance Washington, DC
Hospitality Design - November 2011 - 129
Hospitality Design - November 2011 - 130
Hospitality Design - November 2011 - 131
Hospitality Design - November 2011 - Dick’s Pizza and Pleasure
Hospitality Design - November 2011 - 133
Hospitality Design - November 2011 - 134
Hospitality Design - November 2011 - 135
Hospitality Design - November 2011 - La Pensione
Hospitality Design - November 2011 - 137
Hospitality Design - November 2011 - 138
Hospitality Design - November 2011 - 139
Hospitality Design - November 2011 - 140
Hospitality Design - November 2011 - 141
Hospitality Design - November 2011 - 142
Hospitality Design - November 2011 - 143
Hospitality Design - November 2011 - Back Space
Hospitality Design - November 2011 - Cover3
Hospitality Design - November 2011 - Cover4
http://www.nxtbook.com/nxtbooks/hd/201805
http://www.nxtbook.com/nxtbooks/hd/201803
http://www.nxtbook.com/nxtbooks/hd/201802
http://www.nxtbook.com/nxtbooks/hd/201801
http://www.nxtbook.com/nxtbooks/hd/201712
http://www.nxtbook.com/nxtbooks/hd/201711
http://www.nxtbook.com/nxtbooks/hd/201710
http://www.nxtbook.com/nxtbooks/hd/201709
http://www.nxtbook.com/nxtbooks/hd/201708
http://www.nxtbook.com/nxtbooks/hd/201707
http://www.nxtbook.com/nxtbooks/hd/201706
http://www.nxtbook.com/nxtbooks/hd/201705
http://www.nxtbook.com/nxtbooks/hd/20170304
http://www.nxtbook.com/nxtbooks/hd/201702
http://www.nxtbook.com/nxtbooks/hd/201701
http://www.nxtbook.com/nxtbooks/hd/201612
http://www.nxtbook.com/nxtbooks/hd/201611
http://www.nxtbook.com/nxtbooks/hd/201610
http://www.nxtbook.com/nxtbooks/hd/201609
http://www.nxtbook.com/nxtbooks/hd/201608
http://www.nxtbook.com/nxtbooks/hd/201607
http://www.nxtbook.com/nxtbooks/hd/201606
http://www.nxtbook.com/nxtbooks/hd/201605
http://www.nxtbook.com/nxtbooks/hd/20160304
http://www.nxtbook.com/nxtbooks/hd/20160102
http://www.nxtbook.com/nxtbooks/hd/201512
http://www.nxtbook.com/nxtbooks/hd/201511
http://www.nxtbook.com/nxtbooks/hd/201510
http://www.nxtbook.com/nxtbooks/hd/201509
http://www.nxtbook.com/nxtbooks/hd/201508
http://www.nxtbook.com/nxtbooks/hd/201507
http://www.nxtbook.com/nxtbooks/hd/201506
http://www.nxtbook.com/nxtbooks/hd/expo2015_showguide
http://www.nxtbook.com/nxtbooks/hd/201505
http://www.nxtbook.com/nxtbooks/hd/20150304
http://www.nxtbook.com/nxtbooks/hd/20150102
http://www.nxtbook.com/nxtbooks/hd/201412
http://www.nxtbook.com/nxtbooks/hd/201411
http://www.nxtbook.com/nxtbooks/hd/201410
http://www.nxtbook.com/nxtbooks/hd/201409
http://www.nxtbook.com/nxtbooks/hd/201408
http://www.nxtbook.com/nxtbooks/hd/201407
http://www.nxtbook.com/nxtbooks/hd/201406
http://www.nxtbook.com/nxtbooks/hd/20140506
http://www.nxtbook.com/nxtbooks/hd/expo2014_showguide
http://www.nxtbook.com/nxtbooks/hd/20140304
http://www.nxtbook.com/nxtbooks/hd/20140102
http://www.nxtbook.com/nxtbooks/nielsen/hd_201312
http://www.nxtbook.com/nxtbooks/nielsen/hd_201311
http://www.nxtbook.com/nxtbooks/nielsen/hd_201310
http://www.nxtbook.com/nxtbooks/nielsen/hd_201309
http://www.nxtbook.com/nxtbooks/nielsen/hd_201308
http://www.nxtbook.com/nxtbooks/nielsen/hd_201307
http://www.nxtbook.com/nxtbooks/nielsen/hd_201306
http://www.nxtbook.com/nxtbooks/nielsen/hd_201305
http://www.nxtbook.com/nxtbooks/nielsen/hd_20130304
http://www.nxtbook.com/nxtbooks/nielsen/hd_20130102
http://www.nxtbook.com/nxtbooks/nielsen/hd_201212
http://www.nxtbook.com/nxtbooks/nielsen/hd_201211
http://www.nxtbook.com/nxtbooks/nielsen/hd_201210
http://www.nxtbook.com/nxtbooks/nielsen/hd_201209
http://www.nxtbook.com/nxtbooks/nielsen/hd_201208
http://www.nxtbook.com/nxtbooks/nielsen/hd_201207
http://www.nxtbook.com/nxtbooks/nielsen/hd_20120506
http://www.nxtbook.com/nxtbooks/nielsen/hd_201204
http://www.nxtbook.com/nxtbooks/nielsen/hd_201203
http://www.nxtbook.com/nxtbooks/nielsen/hd_20120102
http://www.nxtbook.com/nxtbooks/nielsen/hd_201112
http://www.nxtbook.com/nxtbooks/nielsen/hd_201111
http://www.nxtbook.com/nxtbooks/nielsen/hd_201110
http://www.nxtbook.com/nxtbooks/nielsen/hd_201109
http://www.nxtbook.com/nxtbooks/nielsen/hd_201108
http://www.nxtbook.com/nxtbooks/nielsen/hd_201107
http://www.nxtbook.com/nxtbooks/nielsen/hd_20110506
http://www.nxtbook.com/nxtbooks/nielsen/hd_201104
http://www.nxtbook.com/nxtbooks/nielsen/hd_201103
http://www.nxtbook.com/nxtbooks/nielsen/hd_20110102
http://www.nxtbook.com/nxtbooks/nielsen/hd_20101112
http://www.nxtbook.com/nxtbooks/nielsen/hd_201010
http://www.nxtbook.com/nxtbooks/nielsen/hd_201009
http://www.nxtbook.com/nxtbooks/nielsen/hd_201008
http://www.nxtbook.com/nxtbooks/nielsen/hd_201007
http://www.nxtbook.com/nxtbooks/nielsen/hd_20100506
http://www.nxtbook.com/nxtbooks/nielsen/hd_201004
http://www.nxtbook.com/nxtbooks/nielsen/hd_201003
http://www.nxtbook.com/nxtbooks/nielsen/hd_201001
http://www.nxtbook.com/nxtbooks/nielsen/hd_200912
http://www.nxtbook.com/nxtbooks/nielsen/hd_200911
http://www.nxtbook.com/nxtbooks/nielsen/hd_200910
http://www.nxtbook.com/nxtbooks/nielsen/hd_200909
http://www.nxtbook.com/nxtbooks/nielsen/hd_200908
http://www.nxtbook.com/nxtbooks/nielsen/hd_200907
http://www.nxtbook.com/nxtbooks/nielsen/hd_20090506
http://www.nxtbook.com/nxtbooks/nielsen/hd_200904
http://www.nxtbookMEDIA.com