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Building a new Hotel

  • architecturaldesig59
  • May 5
  • 2 min read
New budget hotels are in an oversaturated market. They’re also a cutthroat, low profit margin operation. Yet why do hotel developers continue to build them? Suppose for instance, you could construct a new hotel that was built faster than normal, more durable with lower maintenance costs, more operationally efficient, and with additional revenue sources. Interested?
New budget hotels are in an oversaturated market. They’re also a cutthroat, low profit margin operation. Yet why do hotel developers continue to build them? Suppose for instance, you could construct a new hotel that was built faster than normal, more durable with lower maintenance costs, more operationally efficient, and with additional revenue sources. Interested?

A myth continues to persists that all guests want a cheap “budget” hotels to stay in. The reality is very different. Most guests would prefer to stray in an upscale hotel. They understand it will cost more and are continually surprised to find so called ‘budget  hotels” costing almost the same. They’re looking for an alternative.

We know that budget hotels are already in an oversaturated market and face several additional difficulties. First the competition is so fierce profit margins are very slim. Second, with so many competing hotels, everyone frequently operates with barely enough filled guest rooms to pay for expenses. More often, there are many days when there are not enough occupied guest rooms to pay expenses so forget profits. Third, because the hotel was built on such a tight budget the quality of construction is typically low. There’s  constant and increasing maintenance and upkeep costs. Fourth, many architectural firm designing hotel properties only care about what the building looks like and have little real knowledge of hotel operations or how to enhance them. Lastly there is little thought, if any, to additional revenue sources or local community needs and thus the hotel must rely solely on room revenues.

There must be an alternative and there is. The upscale market of 4- and 5-star hotels has a limited supply in many highly desirable locations. We’ve discovered  12 sites where highly desired hotels could be built in previously unknown locations. What’s even more desirable is our operational and profitability approach. See our hotel concepts portfolios for 12 hotels highly desired by the local communities and in locations with little or no competition.

Architectural Design Partners, Inc is different. We bring 50 years of hospitality operational knowledge to each project. We know how hotels operate and focus on maximizing operational efficiency to maximize profits and reduce operational and maintenance costs. We are not involved in the oversaturated budget property market. Our focus is on designing and building upscale hotels. We build them faster and at lower costs than conventional construction. Are modern construction methodology creates more durable buildings with lower maintenance costs and more operational efficiency. We also research local community needs to determine additional revenue source to be included in the new hotel. We don’t just design and walk away, we build, furnish, and supervise the project from start to finish. We have access to hundreds of  thousands of suppliers, most of which clients are unaware of. 

Building in the marginally profitable, oversaturated budget hotel market is no longer realistic. It’s time to consider an alternative approach. Let’s talk.

I’m Harry, managing director of Architectural Design Partners. See unique customizable new construction concepts in our 2 hotel portfolios on our web site: https://www.architectdesignpartners.com

For a free enlightening consultation fill out the request on our website or email me at architecturaldesign.partners@gmail.com


 
 
 

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