Page 7 - Hotel Cost Estimating Guide 2021
P. 7

 GUIDE TO THE COST GUIDE
by Warren G. Feldman, AIA, ISHC CEO of Nehmer | Principal of HVS Design
Additional Renovation / Full Renovation
The Guide provides an additional level of renovation costs in the event you want to do a full renovation or even additional elements of a full renovation. Armed with your softgoods renovation cost, you decide you also want to replace the beds, add a tile foyer to the entry, and get new televisions. Under the Upper Upscale Guestroom – Add for a Full Renovation category (page 64), you should highlight the three additions to your scope. Add the average costs associated with each line item.
    Guestroom - Add for a Full Renovation
RANGE AVERAGE
   Bedsets (Box Spring, Mattress, and Frame)
Entry Area Hard Surface Flooring
TV and Mount (HD LCD, including Programming Allowance)
$878.53 to
$790.02 to $1,336.16 to
$1,134.45 $1,127.00 $1,502.66
$1,006.49 $994.32 $1,414.06
 Guestroom Full Renovation Additional Cost Per Key $3,004.71 to $3,764.10 $3,414.86
   Take the additional renovation costs and add them to your total softgoods number (before you multiply by the number of keys). Take the combined total of the softgoods and additional renovation item total and multiply that number by the number of keys to get the total construction and FF&E cost for your proposed renovation.
Total Guestroom Renovation Cost
Guestrooms Softgoods Renovation Cost Per Key Guestroom Full Renovation Additional Cost Per Key
Total Construction and FF&E Cost Per Key
Adjustments
Once you have the construction and FF&E costs for your project, you also need to account for things not included in the costs above. As stated in the Guide, these costs do not include Professional Fees, Contingency, Operating Supplies + Equipment, Attic Stock, Freight or Sales Tax, the Contractor’s General Conditions, Overhead and Profit, etc. Typically, the design cost of a project including the Architecture, Interior Design, Project Management, and Procurement make up about 10% of the overall budget. The freight and tax vary greatly by location and should be adjusted based upon your specific location. For the freight and tax calculation, assume that the FF&E costs are 50% of the costs of the construction and FF&E. For our sample project, we will assume it is a Midwestern location with 6% state and local tax. You also need to apply a contingency to the budget. If you are doing a quick budget, you might apply 15%. If you are doing a detailed version, it might be 10%.
 RANGE
$9,181.83 to $3,004.71 to
$12,186.54 to
$12,551.25 $3,764.10
$16,315.36
AVERAGE
$10,773.01 $3,414.86
$14,187.87
    Adjustments for Preliminary Budget
Costs for Guestroom Renovation from the Summary Page Construction Markups (18% of Construction)
Freight and T ax (6%-8%)
Professional Fees
RANGE
$9,181.83 to $826.36 to $275.45 to
$1,028.36 to
$1,696.80 to
$13,008.82 to
RANGE
$12,186.54 to $1,096.79 to $365.60 to $1,364.89 to $1,501.38 to $16,515.20 to
$12,551.25 $1,129.61 $502.05 $1,418.29 $2,340.18 $17,941.39
$16,315.36 $1,468.38 $489.46 $1,827.32 $2,010.05 $22,110.57
AVERAGE
$10,773.01 $969.57 $377.06 $1,211.96 $1,999.74 $15,331.34
AVERAGE
$14,187.87 $1,276.91 $425.64 $1,589.04 $1,747.95 $19,227.41
  Contingency (15%)
Adjustments for Detailed Budget
Total Construction and FF&E Cost Per Key
    Costs for Guestroom Renovation from the Detail Pages Construction Markups (18% of Construction)
Freight and T ax (6%-8%)
Professional Fees
 Contingency (10%)
Total Construction and FF&E Cost Per Key
    About the Author
   Mr. Feldman has expertise in all facets of Project Management, Architecture, Interior Design, Design Management, and Construction Administration. His experience includes work as Architect and Owner’s Representative in the direction and management of commercial, institutional, educational, residential, and hospitality projects. Complementing his education in Architecture, Mr. Feldman completed his Juris Doctorate from Georgetown University in December 1998 and is a member of the Maryland Bar.
  NEHMER and HVS DESIGN | HOTEL COST ESTIMATING GUIDE 2021
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