HTM Series (Common Mistakes in Hotel Planning, Development and Operation - Hotel Design) 08.14

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HTM SERIES COMMON MISTAKES IN HOTEL PLANNING, DEVELOPMENT AND OPERATION HOTEL DESIGN August 2014 By Kai Schröter, General Director © HTM Management Consultancy

Transcript of HTM Series (Common Mistakes in Hotel Planning, Development and Operation - Hotel Design) 08.14

Page 1: HTM Series (Common Mistakes in Hotel Planning, Development and Operation -  Hotel Design) 08.14

HTM SERIES

COMMON MISTAKES IN HOTELPLANNING, DEVELOPMENT

AND OPERATION

HOTEL DESIGN

August 2014By Kai Schröter, General Director© HTM Management Consultancy

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Common Mistakes in Hotel Planning, Development and Operation

HTM is pleased to introduce a new seriesof Common Mistakes in Hotel Planning,Development and Operation. This serieshas been prepared in support of owners,developers, architects, designers andproject managers of hotels.

The following presents the most commonmistakes in Hotel Design. It outlinesfrequent errors and omissions occurringduring the design process, which can havelong lasting negative impacts on theproperty’s management, operation andreturn on investment.

Please subscribe to our regular updates [email protected].

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Common Mistakes in Hotel Planning, Development and Operation

Hotel developments are different – they are very diverse and quitecomplicated when compared to any other type of real estate investmentand property development. They involve complex and overlapping end-to-end processes, multiple stakeholders, considerable strategic planningand decision making, extensive technical know how and specialistexperience in project management, operational equipment, technicalservices, pre-openings, management and operation of hotels.

Hotel developments are risky – they are more time-consuming andcostly. By floor space, an average hotel can cost 3 times as much andtake 3 times as long to build. 6,500 different items go into a hotel –about 20 into an office block. An average 5 star hotel requires 27different consultants and around 10‐15% of the budget, the pre‐openingover 10%. Few owners have experience with hotels, few architectsspecialize in hotel design and few project management firms know howto manage hotel development processes.

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Common Mistakes in Hotel Planning, Development and Operation

Hotel developments require specific know how – they frequentlyattract financially potent owners with a background in various sectors –real estate, banking, law, tourism and others, and with a great deal ofvanity, but little experience in hotel development. This often leads towrong decision making in conceptualization, branding, design,construction, management, operation…and the failure of the hotel.

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Common Mistakes in Hotel Planning, Development and Operation

Hotel Planning

Common Mistakes in Hotel Market StudiesCommon Mistakes in Hotel Finance StudiesCommon Mistakes in Hotel Property Evaluation Common Mistakes in Hotel Property Site SelectionCommon Mistakes in Hotel Investment Planning and FinancingCommon Mistakes in Hotel Investment and Business LicensingCommon Mistakes in Hotel Conceptualization

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Common Mistakes in Hotel Planning, Development and Operation

Common Mistakes in Hotel BrandingCommon Mistakes in Hotel Architect Search and SelectionCommon Mistakes in Hospitality Consultant Search and SelectionCommon Mistakes in Hotel Master PlanningCommon Mistakes in Hotel Business and Operation ModelsCommon Mistakes in Hotel Operator Search and SelectionCommon Mistakes in Hotel Management Agreement NegotiationCommon Mistakes in Hotel Technical Services Contract NegotiationCommon Mistakes in Hotel Project PlanningCommon Mistakes in Hotel Capital Expenditures BudgetingCommon Mistakes in Hotel Furniture, Fixtures and Equipment Reserves

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Common Mistakes in Hotel Planning, Development and Operation

Hotel Design

Common Mistakes in Hotel DesignCommon Mistakes in Hotel Access DesignCommon Mistakes in Hotel Exterior DesignCommon Mistakes in Hotel Interior DesignCommon Mistakes in Hotel Operation and Work Flow DesignCommon Mistakes in Hotel Public Area and Front-of-House DesignCommon Mistakes in Hotel Back-of-House and Staff Areas DesignCommon Mistakes in Hotel Guest Room Design Common Mistakes in Hotel Engineering and Technical DesignCommon Mistakes in Hotel Food and Beverage ConceptualizationCommon Mistakes in Hotel Food and Beverage Outlet BrandingCommon Mistakes in Hotel Food and Beverage Outlet DesignCommon Mistakes in Hotel Kitchen and Laundry DesignCommon Mistakes in Hotel Landscape Design

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Common Mistakes in Hotel Planning, Development and Operation

Hotel Development

Common Mistakes in Hotel Project Manager Selection Common Mistakes in Hotel Contractor Negotiations and SelectionCommon Mistakes in Hotel Project Coordination and ImplementationCommon Mistakes in Hotel Bill of QuantitiesCommon Mistakes in Hotel Quantity and Quality SurveillanceCommon Mistakes in Hotel Construction and Site SupervisionCommon Mistakes in Hotel Site Safety and SecurityCommon Mistakes in Hotel Mechanical and Electrical EngineeringCommon Mistakes in Hotel Utility Conservation and Environmental Protection

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Common Mistakes in Hotel Planning, Development and Operation

Common Mistakes in Hotel Technical Services CoordinationCommon Mistakes in Hotel Pre-OpeningCommon Mistakes in Hotel Standard Operating Equipment BudgetingCommon Mistakes in Hotel Brand DevelopmentCommon Mistakes in Hotel Marketing, Sales and Public RelationsCommon Mistakes in Hotel Human Resources PlanningCommon Mistakes in Hotel Recruitment, Selection and TrainingCommon Mistakes in Hotel Testing, Commissioning and Handover

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Common Mistakes in Hotel Planning, Development and Operation

Hotel Operation

Common Mistakes in Hotel Soft-OpeningsCommon Mistakes in Hotel General ManagementCommon Mistakes in Hotel Strategic Positioning and Pricing PoliciesCommon Mistakes in Hotel Brand DevelopmentCommon Mistakes in Hotel Marketing and SalesCommon Mistakes in Hotel Strategic Communication and Public RelationsCommon Mistakes in Hotel Promotion and AdvertisingCommon Mistakes in Hotel Sales and MarketingCommon Mistakes in Hotel Digital Marketing and Online SalesCommon Mistakes in Hotel Distribution ManagementCommon Mistakes in Hotel Customer Relationship Management Common Mistakes in Hotel Revenue and Yield Management

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Common Mistakes in Hotel Planning, Development and Operation

Common Mistakes in Hotel Human Resources PlanningCommon Mistakes in Hotel Human Resources ManagementCommon Mistakes in Hotel Recruitment and SelectionCommon Mistakes in Hotel Training and Staff DevelopmentCommon Mistakes in Hotel Rooms Division ManagementCommon Mistakes in Hotel Food and Beverage ManagementCommon Mistakes in Hotel OperationsCommon Mistakes in Hotel Customer Service and Guest RelationsCommon Mistakes in Hotel Finance and AccountingCommon Mistakes in Hotel Procurement and PurchasingCommon Mistakes in Hotel Revenue and Expense ForecastingCommon Mistakes in Hotel Operational BudgetingCommon Mistakes in Hotel Profit and Loss Analysis

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Common Mistakes in Hotel Planning, Development and Operation

Critical Areas with Typical Design Errors

Hotel Access and EntranceHotel Exterior and SignageLobby and Public AreasFront Office and ReceptionPorter and Luggage RoomElevators, Corridors and PantriesGuest Rooms and BathroomsConnecting RoomsDisabled Guest RoomsRestaurants and BarsRoom ServiceMeeting Rooms and Banqueting AreasSpa, Gym and Swimming Pool

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Common Mistakes in Hotel Planning, Development and Operation

Receiving and Purchasing AreasCooling and Storage FacilitiesKitchens and LaundryManagement Offices and Staff AreasStaff Entrance and Locker RoomsStaff Restaurants and CanteensGuest and Staff NurseryClosed-Circuit Television SystemPrivate Automated Branch Exchange SystemHeating, Ventilation and Air-Conditioning SystemWater Supply, Treatment and Discharge SystemFire Safety and Sprinkler SystemMain Frame Server and Computer SystemProperty Management SystemPoint-of-Sales System

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Common Mistakes in Hotel Planning, Development and Operation

Top 10 Areaswith Most Design Errors in Hotels

1 Guest Rooms

2 Back-of-House

3 Guest Bathrooms

4 Fabric and Finishes

5 Food and Beverage Facilities

6 Elevators

7 Function Rooms

8 Lobby

9 Entrance

10 Kitchen

Source: http://www.wgdarchitects.com/survey/results/results.html

The following pages presentonly a few of the myriad ofconsiderations which shallbe made in professionalhotel design. Most of themseem like common sense,but one would not believehow frequent they aredisregarded.

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Common Mistakes in Guest Room Design

We can’t expect architects to know the nuances of operating hotels. Sowhy do we expect them to know how to best design a hotel room in allfacets and details?

Seems like ‘common sense’, but still happens all too often.

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Too Many Rooms Types and CategoriesA common misperception is that having many types of rooms increases thechoice for guests, thereby widening the target market. The reality is, havingmany different types of rooms creates confusion and pricing issues, affectsmarketing and sales, and limits the ability to accommodate large groups. Atthe same time, it increases room cleaning, fit-out and maintenance costs,eating up owner’s profits.

Unsuitable Ratio between Room Types and CategoriesThe ratio between the number of different room types and categories – e.g.single, double, twin or triple room, standard, superior or deluxe room,junior, family or executive suite, connecting rooms, disabled rooms, smoker-and non-smoking rooms…depends on many factors, which the developer orarchitect do not necessarily know. This can lead to the difficult situation,where the owner is forced to choose between low occupancy or decrease ofroom rates. A ‘Make or Break’ scenario.

Room Design | Some Examples of What Could Go Wrong

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Same Room Types and Categories with Different ConfigurationsThe layout, configuration and fitting out of guest rooms depends on hotelproperty dimensions, brand and operator standards, building design andbudgets, construction ratios etc. Without professional hotel advice,mistakes are programmed and will lead to similar issues as beforementioned – except that often the architect or hotel operator are blamed,instead of the owner…

Room Design | Some Examples of What Could Go Wrong

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The hotel investor, developer or owner should provide the architect orinterior designer a detailed design brief, including the guest roomdesign standards to apply across all rooms, and tailored to each size andtype of room. The design must be driven by maximizing the guestexperience and comfort during their stay. The interior designer must alsokeep in mind the efficiency of daily hotel operation, including thestreamlining of guest check in, housekeeping and minimizing ofmaintenance due to wear and tear.

The owner should appoint a hospitality management consultant, whowill work hand in hand with the architect and interior designer duringthe design phase, in order to minimize costly mistakes that wouldnegatively impact operations, create poor guest experiences and effectprofitability and return on investment.

Room Design | Some Examples of What Should Have Occurred

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The guest’s room experience is highly influenced by the quality of thebathroom design. The configuration and fitting out very much dependson factors such as hotel property, brand standards, target market,guest preferences, owner’s budget and others.The hospitality management consultant will support owner andarchitects to make the right decisions.

Common Mistakes in Guest Bathroom Design

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Bathroom is Too LargeInefficient room configuration creates a waste of space and money tobuild and clean. Visually not attractive.Bathroom is Too SmallEven more important than the size of the bathroom is the efficiency andpracticality of design.Shower or Bathtub?Where are your guests from? France, Russia, Japan, Vietnam? Do theytravel for business or leisure? Do they stay for the long-term or short-term? Choosing between a shower or bathtub depends on the answer tothese questions, and many more...Towel Rack in the Wrong LocationGuests need to search or reach for the towel while dripping water allover the floor creating a slippage hazard. Is your insurance policy up todate?

Bathroom Design | Some Examples of What Could Go Wrong

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No Electricity Socket for the HairdryerIt wouldn’t be a problem if all yourguests were bald and didn’t need a hairdryer.Bathroom Window without BlindsSome people like privacy.Insufficient Hot Water CapacityThis is a very common mistake and it isvery annoying for the guest. It alsosolicits very expensive negative reviews.Mini Bar in the BathroomThis is never a good idea.

Bathroom Design | Some Examples of What Could Go Wrong

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Bathrooms need to be carefully planned and well designed. They need tobe a source of comfort, yet easy to clean and maintain. Lights, mirrorsand electrical outlets need to be carefully located so that they are alwayswithin reach and in the exact place that the guest would expect.The interior designer must work closely with the hospitalitymanagement consultant during the design stage in order to avoid costlymistakes that will lead to difficulties in operation or a poor experience forthe guests.

Bathroom Design | Some Examples of What Should Have Occurred

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The profitability of the hotel’s food and beverage department depends verymuch on functionality of operations, whereas owners and architects mostlyfocus on form and design. Successful F&B businesses combine operationalfunctionality with aesthetic design. Factors must be considered such asroom numbers, house guests, walk-in guests, restaurant-, food and serviceconcept, menu, meal turnover, average covers, kitchen organization,staffing….The hospitality management consultant will support owner andarchitects to make the right decisions.

Common Mistakes in Food and Beverage Outlet Design

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Mismatch between F&B Concept and DesignTo be successful and attract guest, F&B concepts need to be attractiveand unique. Design must represent this and be consistent. The architectand interior designer follow the hospitality concept, not the other wayround.Poor Restaurant Layout and Work Flow DesignInadequate design of F&B outlets by non-hospitality professionals withsevere results, such as poor food and service quality, low customersatisfaction, food and beverage hygiene problems, high F&B andbreakage costs, occupational hazards and work accidents, low staffmorale and high turnover etc.Wrong Restaurant Layout versus Number of RoomsDifficulties to render efficient service with long cues for breakfast, lunchand dinner.

F&B Outlet Design | Some Examples of What Could Go Wrong

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Bad Buffet DesignWrong location of lighting, selection of heights to display food offeringsand wrong location of electrical sockets, wrong buffet dimensions andcustomer flow, confused design of cold, hot and dessert stations.Bad Bar DesignInadequate allocation of space, cooling units, water and electricitysupply, equipment etc., resulting in decreased effectiveness, higher costsKitchen Design does not match F&B ConceptKitchen is designed too large or too small, layout and equipment are notsuitable with operational requirements, work efficiency is low. Thisresults in similar as before mentioned, problems with quality, consistencyand volume.Inappropriate Kitchen Design and InstallationKitchen design does not comply with international safety and hygienestandards, leading to work flow problems, occupational hazards,sanitation and pest problems…and ultimately to big headaches forowners.

F&B Outlet Design | Some Examples of What Could Go Wrong

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Presence of Hazardous AreasKitchen staff facing risks on a daily basis. Better ensure that theinsurance policies are up to date.Inadequate Construction, Workmanship and SupervisionThis needs to be aided by experienced hospitality projectprofessionals. Poor choice of materials and inadequateinstallation will result in high safety and hygiene risks and non-compliance with legal obligations.Wrong Installation of Electrical Sockets in KitchenDifficulties to properly use equipment or to follow cleaningprocedures.Bad Design of Exhaust, Ventilation, Air-conditioning, Exhaustand Grease Trap SystemsIncorrect temperature, unwanted odors, hygiene and pestproblems, low staff motivation.

F&B Outlet Design | Some Examples of What Could Go Wrong

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Lack of Emergency Light and Fire SystemsThe fire safety license will not be granted, insurance policy willbe void and most importantly, the safety of guests and staff willbe compromised.Clean Areas not Separated from Dirty AreasViolation of forward flow principle and HACCP standards.Wet Garbage Area not Separated from Dry Garbage AreaMay be in breach of local regulations and pose fire safety andhygiene risks.

F&B Outlet Design | Some Examples of What Could Go Wrong

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The hotel owner should provide the architect, interior designer andother contractors (kitchen) a detailed design brief, including the foodand beverage concept and design standards per outlet. Architect,interior designer and contractors should have prior hospitality projectand F&B design experience. The design must be driven by maximizingguest experience and comfort, and at the same time maximizingoperational efficiency for employees and revenue generation.

The architect and interior designer must work hand in hand with thehospitality management consultant during the design phase, in order tominimize costly mistakes that would negatively impact operations andcreate a poor guest experience.

F&B Outlet Design | Some Examples of What Should Have Occurred

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Common Mistakes in Lobby and Public Area Design

The hotel entrance and lobby are the face of the hotel, and owners andarchitects pay rightly so much attention to it. However, layout and design ofthis highly functional requires managerial and operational understanding ofhotels. A ‘chic’ and luxury lobby are a waste of money, if inadequate designof reception and other crucial areas cause long queues and waiting of hotelguests…The hospitality management consultant will support owner and architectsto make the right decisions.

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Size of Seating Area not in Proportion to Room InventoryCrowded lobbies with long cues and lack of seating result in poor guestperception.Inadequate Available Parking BaysNeed to ensure that local regulations are followed by the architect.Parking not Available for Physically Challenged GuestsThis is very important to be able to offer as well as ramps to accessbuildings.Poor Lighting in Parking AreasSafety and security risks.Insufficient and Poorly Illuminated SignageGuests will have trouble finding their way around the property. Poorlylit signage is a common mistake.

Lobby & Public Area Design | Some Examples of What Could Go Wrong

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Insufficient Electrical Sockets and in the Wrong LocationOperational difficulties especially for cleaning procedures.Under- or Over-building Rather than Utilizing Space ProductivelyWide and under-built spaces are unproductive and do not generaterevenue, but can make all the difference between a profitable orunsuccessful hotel. Crammed and over-built spaces look tight andmessy, can effect guest experience and revenue. The hospitalityconsultant possesses the specialist knowledge and operationalexperience to develop the right concepts for maximizing use of spaceand revenue, the owners or architects do not.

Lobby & Public Area Design | Some Examples of What Could Go Wrong

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The Lobby and Public Areas need to becarefully planned and well designed. Theseareas will not only increase revenue, butalso improve the quality of work for allstaff.

The architect must work closely with thehospitality management consultant duringthe design phase, in order to avoid costlymistakes that will lead to difficulties inoperation or a poor experience for theguests.

Lobby & Public Area | Some Examples of What Should Have Occurred

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Common Mistakes in Elevators and Corridors Design

The correct design and location of elevators and corridors will considerably improve the mobility of guests and staff.

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Elevator & Corridor Design | Some Examples of What Could Go Wrong

Lack of Guest ElevatorsLong wait times will negatively affect the experience of guests.Wrong Location of Elevators and Goods LiftsSlows down operations and causes decline in service standards.Elevators too Close to Guest RoomsGuests will complain about noise, especially early in the morning whenhousekeeping staff move around their trolleys.Poor Lighting in Corridors and PathwaysSafety and security risks.Inadequate Room SignageProper allocated and visible room signage is appreciated by guests.Lack of Elevators near Key OutletsGuest facing difficulties to access areas especially at peak times.

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Mobility flows will be affecting daily operations of staff and theexperience for guests. The architect should be warned about thepotential pitfalls and have a thorough understanding of the function andlocation of each area.

Elevator & Corridor | Some Examples of What Should Have Occurred

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The Back-of-House Areas are the heart and muscles of the hotel. Baddesign without support from hospitality professionals will seriouslyaffect daily operation.

Common Mistakes in Back-of-House Design

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Inadequate Supplier Entrance and Receiving AreaEither no existing separate back-of-house access for daily hotel supplyor an access to close to public and guest areas will seriously effect hoteloperation and guest experience.Inadequate Staff Entrance and Lack of Staff FacilitiesNo suitable staff entrance, access control, staff changing areas andfacilities, staff canteens will result in problems with grooming standardsand staff motivation.Inadequate Storage SpaceMaintaining minimum stocks will forever be a challenge.Wrong selection of Materials for Walls, Floors, Windows and CeilingsPermanent problems of humidity, ventilation, cracks in the masonryand slippery floors.Lack of Water Points and Drainage in Storage AreasStaff will not work efficiently and will fail to follow cleaning, health andhygiene procedures.

Back-of-House Design | Some Examples of What Could Go Wrong

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Insufficient Garbage Collection Space or in Wrong LocationToo small, too far, too close, not safe or not clean – all recipes to invitepest, hinder effective operation or receive guest complaints.Missing Linen, Uniform and Laundry RoomThe housekeeping manager will have trouble to keep linen standardsand organize staff to meet operational needs.Insufficient Working Space for Housekeeping DepartmentProblems to store linen, baby cots, extra beds and trolleys in closeproximity to the rooms.Insufficient Departmental Office SpaceThe head’s of department will be obliged to work in improvised officesfar from the workflow and with inadequate loose furniture.No Separate Staff ElevatorsHotel employees will use guest elevators or have to walk stairs. Not onlyunsuitable for international standard hotel, but also detrimental tooperational costs and guest experience.

Back-of-House Design | Some Examples of What Could Go Wrong

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Inadequate Hotel Technical SystemsDesign not in line with professional hotel standards in terms of sewagetreatment, fire, air conditioning, grounding, lighting, rain waterharvesting, generator and gas. Will not only cause trouble with localauthorities, but even bigger troubles in operation.Hot and Cold Water Capacity IssuesGuests experience an unpleasant surprise during their morning shower.Inadequate TV, Camera, Background Music, Telephone, Computer andAudio Visual SystemsBland experience for guests.

Back-of-House Design | Some Examples of What Could Go Wrong

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The owner, architect, engineering consultant and project manager shallwork and cooperate closely with the hospitality managementconsultant from an early stage on to avoid costly errors

Back-of-House | Some Examples of What Should Have Occurred

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These areas are especially important for guests who are looking forgetaway and leisure trips.

Common Mistakes in Spa, Gym and Pool Design

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Inadequate Gym DesignMany hotel gym designs resemble fitness studios without warmth orcharm.Inferior Spa and Gym EquipmentEquipment fails to meet expectations of guests and standards of thebrand.Missing Light Dimmers and Sound System in Treatment RoomsNegatively impact the experience of guests.Insufficient Space for LockersComplaints from guests.Insufficient Furniture in the Pool AreaThe purpose of these areas are rest, relaxation and leisure for guests soovercrowding should be avoided.

Recreation Areas Design | Some Examples of What Could Go Wrong

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The interior designer should be provided with a detailed design brief,including the concept for the spa and sports/recreation areas, as well asthe design standards for each area. The design must be driven bymaximizing guest experience and comfort during their stay as well asstreamlining the operation for all employees.

The architect must work closely with the hospitality managementconsultant during the design phase, in order to avoid costly mistakesthat will lead to difficulties in operation or a poor experience for theguest.

Recreation Areas | Some Examples of What Should Have Occurred

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Contact

HTM Management Consultancy

Head Office HanoiNo. 2, Alley 236/ 7, Au Co StreetTay Ho District, Hanoi, Vietnam

E-mail: [email protected]: www.ht-management.com

Telephone: +84-4-3719 1850/1Facsimile: +84-4-3719 1849

Branch Office Ho Chi Minh CitySITC Building, 2nd Floor, Room 209-210

311-319 Gia Phu Street, Ward 1District 6, Ho Chi Minh City, Vietnam

E-mail: [email protected]: www.ht-management.com

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