Hospitality Design Trends of 2009

source: hotelsmag.com

http://www.hotelsmag.com/blog/380000638/post/1920039992.html?nid=3457&rid=1899835782

Hospitality Design Trend Forecast 2009  (by Roger Hill)

January 30, 2009

I spent this week at the ALIS conference in San Diego – enjoying the sun as well as some not-so-sunny industry forecasts. While waiting at O’Hare airport, I found inspiration at the magazine stand and decided to ask two of my esteemed colleagues to do some 2009 trend forecasting.
 
I have asked Julius van Heek and Meg Prendergast, two seasoned hospitality design professionals who are on the forefront of balancing design trends with clients’ needs, to share what they see on the design horizon this year.

1. What colors, fabrics and treatments do you expect to see a lot of in 2009, and what is standing out?

Prendergast: I still see the minimal use of patterns in interior design. Rich, lustrous fabrics are always a preferred direction since they add such depth to a room or space.

Technology is helping develop really cool treatments to standard products. I am particularly excited about micro-lasered leather for a new look.

van Heek: I expect a resurgence and spin on the muted tones that we experienced in the mid to late 80’s. Informally, I call these “Colorado colors” from the boom days of big ski residences. Look for muted tones of mushrooms, beiges, warmer/softer tones based on the browns, peaches to soft rusts/bronzes.

The evolution of “green/sustainability” will compound this color trend. The extrapolation and abstractions of pattern based upon nature’s influence will continue. Think sky (clouds), sand (color and texture) and flowers (gradation of one basic color).

I also expect that within this overall muted color/pattern palette, we will see a pop of vibrant color and/or pattern. Think of a beautiful, natural field with the pop of wildflowers coming through; or the calming effect of being underwater while being surprised by colorful tropical fish swimming by. Consider accents of Aubergine, deep purples, intense blues, hot reds.
 
2. What is catching your eye as a trend?

Prendergast: At every design meeting, I hear that modern and sleek is still top-of-mind, but with a softer edge.

3. Do you have a particular favorite trend of 2009?

Prendergast: Clients and, in turn, their guests, want spaces that work. Comfortable spaces that provide a lot of user-friendly flexibility seem to be key.

My personal favorite, however, is an art program that really adds character to a project. This is an investment that brings quality and value to any project and really sets the tone from a design standpoint. Moreover, beautiful art transforms mere spaces into places where we want to spend time. For the hotelier who wants to ensure that guests spend time in the lobby, an art program is the best way to go.

van Heek: I would say it is the gradation of color concept discussed previously. It is a good example of maintaining subtlety while still attracting attention to a wall, furniture piece or flooring material.

From a technological standpoint, I love what companies are able to do with laser cutting and/or etching. I’ve seen it in porcelain tiles, marbles/granites, leathers and glass and it seems to be an effective technique to add “subtle glam” to tried and true/basic material. Click here to see some examples of how etching can transform the basic to the extraordinary.

4. What are your clients asking for from a design standpoint?

Prendergast: It’s no surprise – ROI, ROI, ROI! Large or small, luxury or economy, this economic environment mandates solutions that will help provide long-term returns on investment for ownership.

5. What design trends do you predict will be dictated by the economy?

van Heek: If it is a high ticket concept/item, it better last and/or get better over time (think leather or beautiful wood flooring aging and getting more beautiful over time.) These pieces, however, provide amazing value and are worth the investment.

A good design team also always has their eye on ease of maintenance, which makes design cost-effective in the long term.

Finally, the line between work and play has been obliterated (not just blurred) in this economy and needs to be reflected in design. This trend started with the cell phone, migrated further by the Blackberry and has now been destroyed with the world economic situation. Business hotel and resort hotel design has meshed forever as a result of the times.

6. What design trick is your favorite “bang-for-the-buck” application?

Prendergast: Layers of gypsum board for a good way to add detail without the cost of millwork. There is also a lot of mileage to be gotten out of grout patterns without the hassle or expense of too many different stone materials.

van Heek: I always employ what I call “experience designing,” which entails thinking of the person who may be using the space, how they might use the space (flexibility) and then accommodating as many varied needs with the physical parameters of the space. When a designer approaches a project with this philosophy, the opportunities for value-engineering are more easily exposed.

Posted by Roger Hill on January 30, 2009

Russia: Big Land Mass, Big Buildings

source: inhabitat.com

http://www.inhabitat.com/2007/12/26/tallest-skyscraper-in-the-world-coming-to-moscow/

 

World’s Biggest Building Coming to Moscow: Crystal Island

 

by Karim Yergaliyev (December 2007)

 

Moscow’s rapidly growing skyline will soon feature an eye-popping new addition: Crystal Island, which will be the world’s biggest building when completed. Sir Norman Foster’s mountainous 27 million square feet spiraling “city within a building” will cost $4 billion and it is scheduled to be built within next 5 years.

The Crystal Island will be Lord Foster’s second large scale project in the Russian capital, and his third new building design that resembles a volcano (we’re talking about his two mountainous buildings in Astana, Kazakstan). Although many people are calling this design the ‘Christmas Tree’ of Moscow – we can’t help but be reminded of the utopian and also rather volcanic X-Seed 4000 design for Tokyo. Unlike that pipe-dream project, however, Foster has a track record of getting buildings built, so the likelihood is high that we will see this striking structure towering over the Kremlin within 5 years time.

 

The statistics for the project are absolutely staggering; floor area alone will be four times the size of Pentagon in Washington DC. The incredible 1500 ft. tall multi use structure will feature 900 apartments, 3000 hotel rooms, an international school for 500 students, cinemas, a theater, sports complex and much more. There will also be a 16,500 space underground parking lot for all the visitors. The Crystal Island visitors will be able to enjoy panoramic views of Moscow on the viewing platforms located 980 ft. above ground.

And as we’d expect from Foster + Partners, this soon-to-be world’s biggest building will also incorporate a number of sustainable design features into the overall scheme. The exterior facade will be solar responsive and will include solar panels which, along with wind turbines, will generate electricity for the huge tower. Natural ventilation will be provided thanks to numerous strategically placed large atriums. The internal environment will also have dynamic enclosure panels slotted into the structural framing that will allow daylight to penetrate deep into the heart of the structure; the panels will also be controlled to modify temperature inside the building – closed in winter for extra warmth and opened in summer to allow natural ventilation. Energy management is at the heart of this structure, several on-site renewable and low-carbon energy generation projects are planned.

+ Crystal Island – by Norman Foster

+ X-Seed 400 — City Within a Building Proposal For Tokyo

+ Foster Green Tower in Siberia

Via Skyscrapernews.com via Times Online: Foster plans world’s biggest building

U.S. Spa Industry in 2009

source: Hotelsmag.com

http://www.hotelsmag.com/article/CA6626569.html?nid=3457&rid=1899835782

Will U.S. Spa Revenue,
Profit Growth Continue?

– Hotels, 1/6/2009 8:23:00 AM

LOS ANGELES, Ca., January 6, 2009 – Spas continued to contribute to the top and bottom lines of U.S. hotels in 2007.  Total spa department revenue increased 5.0 percent from 2006 to 2007, while spa department profits grew 5.8 percent.  These are among the findings reported in PKF Consulting’s (PKF-C) recently released 2008 edition of Trends in the Hotel Spa Industry, a report that examines the revenue, expenses, and profits of hotel-operated spas in the United States.

“Lodging industry owners and operators fully realize that a well-run spa operation can benefit a hotel in many ways,” said Bruce Baltin, senior vice president in the Los Angeles office of PKF Consulting.  “In addition to the monetary contribution, a spa can help define the market position of a hotel, provide a competitive asset that is attractive to multiple demand segments, and diversify a hotel’s revenue stream.  It is this type of product differentiation that managers hope will provide a competitive advantage in 2009.”

During challenging times like these, the spa industry has the potential to be buoyant.  However, it is not invincible.  “The dynamics of the spa industry enable it to persevere longer than other industries for several reasons,” Baltin noted.  “A large portion of its consumers are affluent, an increase in stress can further emphasize the importance of staying healthy, and in difficult times people tend to seek out experiences rather than material objects.  All that being said, hotel spa usage will likely decrease due to expected declines in occupancy rates and guest counts for the lodging industry in general.”  In its December 2008 Hotel HorizonsSM report, PKF Hospitality Research (PKF-HR) is forecasting that the typical U.S. hotel will experience a 5.3 percent drop in occupancy in 2009.

The 2008 Trends in the Hotel Spa Industry report analyzes the 2007 financial performance of 116 spas operated by hotels located throughout the United States.  In aggregate, the 116 hotels that voluntarily submitted their data for the survey averaged 405 guest rooms in size and achieved an occupancy of 70.8 percent and average daily room rate of $257.14 in 2007.  Both urban and resort hotel spas were included in the research, while day spas, medical spas, destination spas, and hotel spas that independently lease space were excluded.  For the purposes of this research, departmental profits are calculated before deductions for undistributed expenses and fixed charges.

Spa Revenues
Since the number of occupied rooms for the survey sample remained relatively flat (0.2 percent decline), the 5.0 percent rise in spa revenue was likely due to an increase in the price for spa services, increase in number of services utilized per hotel guest, or a stronger mix of local patronage.  “Recent research has shown that although consumers are tightening their belts, they are still traveling albeit with a different mindset and expectation of services.  People increasingly are requiring greater value and a heightened level of experience.  Hotels with spas can meet those needs by providing promotional packages, special offers, and discounts,” observed Gabrielle Lerner, associate in the Los Angeles office of PKF-C.

For the hotel spas that participated in the survey, department sales represented 3.9 percent of total hotel revenue in 2007.  Within the spa department, massage continued to be the greatest source of revenue (55.6 percent), followed by skin care and body work (18.8 percent) and salon services (10.7 percent).

Spa Expenses
Overall, spa department expenses increased 4.7 percent from 2006 to 2007, driven mainly by a 6.6 percent increase in labor costs.  Like all departments within a hotel, labor-related costs are the biggest operating expense for spas, representing 57.2 percent of department revenue.  “Labor costs in urban hotel spas tend to be somewhat higher than in resort spas.  Urban hotel spas have lower revenues and inconsistent demand for services making scheduling more complicated,” Lerner said.

Spa Profits
The average departmental profit margin for the spas in the survey sample was 24.1 percent.  For comparison purposes, the average profit margin for all other operated departments in PKF’s Trends in the Hotel Industry survey was 29.4 percent.

From 2006 to 2007, hotel spa department profits grew 5.8 percent.  Profit growth was greater for urban spas (12.3 percent) versus resort spas (4.6 percent).  “While 5.8 percent is a healthy rise over the previous year, it was less than the 6.7 growth rate for total hotel operated department income, which demonstrates the evolving spa industry still has room to improve,” Baltin noted.

Hotel Spas In 2009
“As U.S. hotels are forecast to struggle with declines in occupancy, ADR, and revenue, we believe there is an opportunity for spa operators to capitalize on operational and competitive advantages,” Baltin said.  “Hotel spas are an important amenity to all market segments and should be leveraged with regards to meetings, conventions, and other special events.  Innovative marketing can also be created to promote the spa as a ‘staycation,’ thereby providing a refuge for local residents.”

To purchase the 53-page 2008 edition of Trends in the Hotel Spa Industry, please visit the firm’s online store at www.pkfc.com/store, or call (866) 842-8754.  In addition to multiple data tables that display revenue, expense, and profitability benchmarks, the report includes editorial content from the following guest authors: Lynne McNees – ISPA, John Korpi – ISPA Foundation, Mary Tabacchi – Cornell University, Jennifer DiFrancesco – Miramonte Resort and Spa, and Judith Singer – Health Fitness Dynamics, Inc.  In addition Brett Blumenthal – Gensler, Jeanie Klueter – WATC, Julia Monk – BBG-BBGM, and Chris White – WTS International participated in a roundtable discussion on spa design trends.

PKF Hospitality Research (PKF-HR), headquartered in Atlanta, is the research affiliate of PKF Consulting, a consulting and real estate firm specializing in the hospitality industry.  PKF Consulting has offices in Boston, New York, Philadelphia, Washington DC, Atlanta, Indianapolis, Houston, Dallas, Bozeman, Sacramento, Seattle, Los Angeles, and San Francisco.

Commercial Real Estate – Emerging Trends

source: RealtyTimes.com

http://realtytimes.com/rtpages/20090107_combottom.htm

Commercial Real Estate Market to Hit Bottom Next Year, Urban Land Institute

by Peter L. Mosca

No matter the market, capitalizing on industry knowledge has always been a major ingredient to overall business success. For builders looking to better understand the real estate market, they should take note of a new report by the Urban Land Institute. According to the “Emerging Trends in Real Estate® 2009″ report, released by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP, real estate industry experts expect financial and real estate markets in the United States to bottom in 2009 and then flounder for much of 2010, with ongoing drops in property values, more foreclosures and delinquencies, and a limping economy that will continue to crimp property cash flows,

“Commercial real estate faces its worst year since the wrenching 1991-1992 industry depression,” conclude industry experts interviewed for the report, which projects losses of 15 percent to 20 percent in real estate values from the mid-2007 peak. “Only when property financing gets restructured will pricing recorrect so we can find the floor; and this transition could wipe out companies and people,” said one respondent interviewed for the report.

In general, interviewees believe that financial institutions will continue to be pressured into moving bad loans off balance sheets, using auctions to speed up the process. Investors will be discouraged until the “bloodletting’ is over, states the report. When that occurs, cash and low-leverage buyers will be “king;” surviving banks will impose strict lending guidelines; commercial mortgage-backed securities will revive, but in a more regulated form; and opportunity funds will need new investment models.

“The industry is facing multiple disconnects,” said ULI Senior Resident Fellow for Real Estate Finance Stephen Blank. “Many property owners are drowning in debt, lenders are not lending, and for many (industry professionals), property income flows are declining. There is an unprecedented avoidance of risk. Only when financing gets restructured will pricing reconcile, giving the industry a point from which to start digging out of this hole.”

“The cyclical real estate markets always comes back, and they will this time too, but not anytime soon,” said Tim Conlon, partner and U.S. real estate sector leader for PricewaterhouseCoopers. “Commercial real estate was the last to leave the party, will feel the pain in 2009, and may be the last to recover. In the meantime, smart investors are going to hunker down and manage through these tough times. We expect to see patient, disciplined, long-term investors rewarded, and return to a back to basics approach to property management, underwriting and deal structure.”

Distress in the housing market is benefiting the apartment market, which the report lists as the number-one “buy.” Moderate-income apartments in core urban markets near mass transit offer the best buy, a trend that carried over from the previous year.

The report acknowledges that commercial markets will recover more quickly than most housing markets, and homebuilders may have to sell land tracts for “cents on the dollar” or face foreclosure on their holdings, adding to the already high rate of mortgage defaults and foreclosures.

One silver lining: Interviewees agreed that eventually, savvy investors will be able to cash in on the inevitable recovery, which some see occurring as early as 2010. “Money will be made on riding markets back to recovery and releasing properties, not on…financing structures,” finds the report.

Before a rebound, Emerging Trends says the following needs to happen:

   
• Private real estate markets need to correct – lenders must force distressed owners to become motivated sellers. 
• Debt capital needs to flow – lenders will need to learn to deal in a more stringent regulatory landscape. The commercial mortgage-backed securities (CMBS) market must “reformulate.”  Regulators need to restore confidence in the securities market. The government will insert itself into overseeing mortgage securitization markets. Systemic overhaul promises more measured debt flow. 
• The economy needs to improve. Falling demand for space won’t affect real estate markets severely until 2009.

The Report also offered these tips for what to do in 2009:

  
• Recap distressed borrowers – invest in maturity defaults, construction loans/bridge loans, or take mezzanine positions and equity stakes in properties. 
• Focus on global pathway markets – 24-hour coastal cities. 
• Staff up asset managers, leasing pros and workout specialists. Separate good assets from bad. 
• Retrench on development and reorient to mixed-use and infill. Higher-density residential with retail will gain favor in next round of building.  Go green – cutting energy expenses is likely to be a priority. 
• Buy or hold multi-family; hold office; hold hotels; buy residential building lots, but be prepared to hold. 
• Purchase distressed condos in urban areas near transit.

Lastly, the Report listed a number of markets to watch in 2009. Here’s a look at the Report’s Top 5 Markets:

   
• Seattle boasts its “corporate giants,” but the market braces for rising downtown office vacancies; now at 10 percent. Tepid job growth will flatten rental rates. Housing demand drops and prices will slip, but stay above national averages. Interviewees rate the market a strong “buy” for apartments, and the “number-one buy” among industrials is the Puget Sound ports. 
• San Francisco offers a Pacific gateway and a high quality of life with a well-diversified economy. The city ranks first for development and homebuilding, and is a leading “buy” city for apartments and office. Even though housing prices are expected to decline, foreclosures should remain in check, the report notes. 
• Washington is the “ultimate hold market when the economy struggles.” Downtown office vacancies should remain below 10 percent, and apartments lease “no matter what.” The above-average employment outlook offers promise for the retail sector, the report says. Still, office vacancies continue to soar in northern Virginia, and further declines in condominium and home prices can be expected. 
• New York takes a beating with the Wall Street “implosion” creating job losses and office vacancies. Hotels should continue to draw tourists with the weak dollar. Retail frenzy ends, but the wealthy keep Madison Avenue boutiques alive. With the condo/coop market at a “crest,” developers “should worry about flagging buyer demand,” the report notes. 
• Los Angeles downtown benefits from condo/apartment projects. “It’s almost impossible to lose money on apartment investments if you have a five- or 10-year investment horizon,” notes one respondent. Hotels benefit from global pathway location. One downside — homebuilders in San Bernardino and Riverside continue to grapple with the housing collapse.

Rounding out the top ten markets to watch:

   
• Houston. Stays relatively strong as long as energy stays hot. It makes the top ten for the first time since 1995. Office vacancies drop to 10 percent, “a good buy opportunity,” but apartments soften. Cheap land results in cheap housing, and prices have not gone up dramatically. 
• Boston. Job outlook is more favorable than most cities, with office space “tight” in the Financial District and the Back Bay area. New “harborside hotels threaten older product.” 
• Denver. The state capital has a major federal government presence, which should buffer job losses. Steady population growth and broadening diversification of the industry keeps the housing market stable. Mass transit should pay future dividends. 
• Dallas. Compares favorably to other “hot-growth” markets. Although office vacancies downtown are 20 percent or higher, apartments do well and developers keep building single-family homes. 
• Chicago. Apartments do well, but condos weaken as speculators leave the market. Office vacancies are in the low teens, and O’Hare International Airport keeps industrial space in the “global pathway.”

While most of the findings in the ULI Report were unfavorable, there were ’silver linings’ mentioned. For builders looking to seek competitive advantages, possessing the best knowledge available about the industry should help the process lead to greater success.

[Note: Now in its 30th year, Emerging Trends is a highly regarded annual industry outlook for the real estate and land use industry and includes interviews and survey responses from more than 600 leading real estate experts, including investors, developers, property company representatives, lenders, brokers and consultants.]

Published: January 7, 2009

Dutch Plan To Build A New Island

source: International Herald Tribune

http://www.iht.com/articles/2007/12/10/asia/testrtrisland11.php

By Emma Thomasson Reuters

Published: December 10, 2007

Tulip island in the Netherlands as it would appear in a satellite image. (Innovation Platform)

AMSTERDAM: The Netherlands wants to redraw the map of Europe – literally.

Dubai built Palm Island. Now the world leaders in land reclamation are considering an island in the shape of a tulip to fight overcrowding and shield the coastline from the rising sea.

Supporters of the scheme say it will give Dutch companies a chance to showcase water management skills that are increasingly in demand due to global warming, but critics say the plan will be prohibitively expensive and harm delicate ecosystems.

While a poll in October by the research company TNS NIPO with the Red Cross showed that the Dutch were more afraid of flooding than a terrorist attack, many have a strong faith in Dutch expertise and technology to protect them from the water.

The Dutch Parliament has asked a commission on coastal development to look into the idea of building islands in the North Sea that could be used for housing, farming or a nature reserve, while at the same time helping to protect the coast.

“People live on top of each other in the Netherlands,” said Joop Atsma, the Chritian Democrat politician who sponsored a parliamentary motion on building in the North Sea. “We are hungry for land. A huge area is needed for building.”

Atsma says high land prices threaten the country’s position as one of the world’s exporter of agricultural products, and make a 100,000 hectare, or 247,000 acre, island potentially worth €10 billion, or $14.69 billion – enough of a return to fund the project.

A government body set up to promote innovation has drawn up proposals for an island about 50 kilometers, or 31 miles, long, sparking fierce debate which inspired one blogger to joke that a cannabis leaf may be a more suitable shape than the tulip on the formal plans.

“The Netherlands has a lot of know-how in terms of water,” said Maria Henneman of Innovation Platform. “It exports this knowledge but it is missing out on innovation. More experiments are needed in the fields of alternative energy, tides and wind.”

“Of course it is an expensive investment but with current technology a lot is possible.”

The Netherlands, literally the Low Countries, has a long history of pioneering technology to help it claw back land from the sea and fight recurrent flooding.

U.S. officials sought advice from Dutch experts after floods devastated New Orleans in 2005, and Dutch companies have been involved in coastal developments worldwide.

The Dutch company Boskalis developed techniques during the Zuiderzee and Delta projects to become the world’s largest dredger, helping reclaim land for Hong Kong’s airport and now working on Oman’s “Wave” project, a huge resort added to the coast.

Dubai’s island, which juts into the shallow waters of the Gulf in the shape of a palm tree, was built by the Dutch marine contractor Van Oord using more than 100 million cubic meters, or 3,500 cubic feet, of sand.

“I live far below sea level and I have never had wet feet at home,” Atsma said. “So much can be done with water management.”

One of the world’s most densely populated countries, with 16 million people living in an area about half the size of Scotland, a quarter of the Netherlands is below sea level and lies on the floodplains of three big rivers.

In 1932, work was completed on a mammoth 32-kilometer dike that closed the Zuiderzee off from the North Sea and allowed 1,650 square kilometers, or 640 square miles, of land to be drained.

After devastating floods in 1953 killed more than 1,800 people, the Dutch started one of the world’s largest construction schemes, the Delta project, to raise dikes, close sea estuaries and build a huge storm-surge barrier.

“Funny shapes like tulips, clogs and windmills are a good way to start a debate, but they should not be considered as realistic,” said Bert Groothuizen, spokesman for Van Oord, the builder of the Dubai palm island.

While Dubai’s Gulf rarely sees waves above 2 meters, or 6.5 feet, high, the North Sea is much stormier with waves of up to 10 meters.

“The seaward protection must be stronger than in the Arabian Gulf which means that construction costs are greater,” he said, adding it might be more realistic to extend Dutch beaches into the sea or move the main airport.

That idea was already floated after a plane crashed into an apartment block in Amsterdam in 1992, but it was shelved due to cost and environmental concerns. Nature-lovers have also scuttled plans to drain more land onshore.

Given rising sea levels, Van der Veen said it made more sense to protect existing land than build a new island.