Participants Discuss Design Concepts, Trends at Cornell Hotel School Roundtable

THE SHAPE OF THINGS TO COME

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. October 14, 2008

ITHACA, NY, November 1, 2005. Thirty industry and academic leaders gathered at the Cornell Hotel School in October to discuss current trends in hospitality design. Under the lead of Cornell Professor Richard Penner, attendees covered a range of subjects including the need to balance technology and personal service; reconciling design innovations with brand consistency; current reserve levels for replacement; and the continued outsourcing in food and beverage facilities.

Participants agreed that one of the toughest challenges facing hoteliers is in how to balance advances in technology with personal service. While hoteliers agree that personal recognition remains a hallmark of hospitality, some opined that technology is about to trump personal interaction, especially at check-in and check-out.

"The front desk is a dead duck," said Richard Senechal, senior vice president of facilities for Loews Hotels.

Another discussion centered on the challenge of reconciling design innovations with brand consistency. While building beyond brand standards may "lift the brand" and encourage all brand properties to follow suit, the group agreed this strategy could result in an uneven guest experience across brand properties. The panel concurred that designers who intend to design outside the brand need to show how their innovations will drive hotel performance.

The group also addressed the inadequacy of current reserves for replacement. Attendees agreed that the high occupancies and stagnant ADRs of the last two years have resulted in greater wear and tear on properties but insufficient reserves being put aside. The industry standard of 3-4 percent of revenues is unlikely to be sufficient as properties age and designs become more sophisticated. Some panelists suggested that 6-7 percent of revenues is a more realistic level for reserves.

The group also discussed the continuing movement away from hotel-operated food and beverage outlets. More developers who allocate space for a restaurant are turning over concept and design to a restaurateur and restaurant-design specialist. Some of these designers have followings of their own, much as chefs do, which can add to a hotel's cachet as well as its bottom line through participation in restaurant revenues.

Looking ahead, participants identified the following trends in lodging design and construction:

Co-branding will continue, whether with personalities and brands from the fashion industry or retail brands that have synergies with the hotel.

Rooms may get narrower again, because of advances in technology such as the flat screen TVs. Conversely, guests want the beds to be bigger, and bathrooms to be spacious.

The shift away from the bathtub continues, making much more flexible bathroom layouts possible.

Energy costs are increasing rapidly, making technologies such as a single point of energy control in the room more attractive for North American projects.

Pressure is coming for LEED (Leadership in Energy and Environmental Design) certification for new construction. The market base is concerned about environmental issues, and owners and operators will need to respond.

Designing in 3D is getting more and more practical given the latest software, but this approach increases concerns about accuracy in construction drawings.

Rebuilding in the wake of Hurricane Katrina will probably push labor, drywall, and lumber costs up 10-15 percent across the board.

Roundtable participants included leaders from Cendant Hotel Group; Wimberly Allison Tong & Goo; Lloyd Fruchtman, Architect; PMG Architects; CNL Hospitality Corporation; Gettys Group; Ai Group Architects; Looney & Associates; Culpepper, McAuliffe and Meaders, Inc; John Nicolls Group; Exclusive Resorts LLC; Host Marriott; Forrest Perkins LLC; JHM Hotels; Four Seasons Hotels & Resorts; and Loews Hotels.

Glenn Withiam, 607-255-3025, [email protected]