Hospitality Development & Planning

Real Estate Investment Trust
+ corporation that owns & trades real estate
+ may be public or private but must have at least 100 shareholders
+ must distribute at least 90% income anually to avoid corporate taxes
+ own greatest % of hotels in US market

1) developer creates hotel then finds operator/sells
2) owner hires a developer
3) owner does it all

+ may help attract investment
+ satisfies lenders
+ provides design input
+ earns management fees from owner
+ may be affiliated with specific brands or not

+ provides "cachet" of brand name
+ attracts investment
+ satisfies lenders
+ provides design input
+ charges fees for use of brand & marketing

+ initiates project
+ raises funds
+ retains team
+ controls process
+ coordinates process
+ bears most of the risk until opening

+ establish objectives (why develop)
+ identify site
+ identify issues (with location & site)
+ assemble project team
+ determine the concept (type of project, key attributes, & managment structure)
+ start raising funds

Greenfield or brownfield

Refurbish, reposition, or reflag

Site work, foundations, structure, systems, interior work, FF&E, landscaping, punch list, & inspections

Identifying potential bidders, soliciting competitive bids, selecting those who will actually construct the project

Contract documents-- a design phase
+ full documentation for construction

Design development-- a design phase
+ detailed spaces
+ FF&E selection & placement

Schematic design-- a design phase
+ arrangement of spaces
+ basic circulation patterns

SD,CD, DD
+ arranging spaces for maximum effectiveness
+ determining the look & feel
+ FF&E selection
+ documentation
+ approvals from brand/operator
+ redefining the budget

+ How much?
+ How many?
+ functional issues necessary for design
+ coordination with brand
+ instruction to designers