A Project Lifecycle for New Hotels

  Business Case   Construction   Manufacturing   Risk Management   Strategy   Knowledge Shelf  

Abstract
This paper advocates that hotel owners adopt a complete and well-defined project lifecycle when developing their new hotels. Moreover, it recommends that owners should appoint an experienced and well-rounded project manager to plan all phases within this project lifecycle from day one of their projects.

To provide a context, the paper summarizes current approaches to opening new hotels and identifies their inherent problems. Then, the overall asset lifecycle for a hotel is proposed and the authors recommend that owners adopt the extended project lifecycle for their new hotel projects. The goals and deliverables for the key phases within this extended new hotel project lifecycle are identified and the main benefits of following this new approach are explained.

This new approach ensures that all interdependencies are identified and planned for, and reduces the risks of new hotel opening project failures (delays, cost overruns, etc.). It also helps optimize the return on investment for each new hotel and maximizes positive cash flows from operations.

Introduction
The current status quo for new hotel developments is one of interdependent, but non-integrated phases, whereby owner-appointed, but separate entities design, build, open, and operate each new hotel. There are inherent inefficiencies and crucial conflicts of interest in this approach that inevitably …

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