In this day and age, it has become less complicated to open a hotel. We are living in a world where Airbnb exists, meaning that anyone can become a hotelier by uploading their property onto the platform. You could say that the hotel dream is alive and thriving. With that said, there are still plenty of requirements of a hotel building that one must follow to bring their hotel to life. This is especially true when it comes to boutique hotels.
What is a boutique hotel building?
You’re probably not acquainted with the term “boutique hotel.” However, there is a good chance that you’ve stayed in one.
Boutique hotels are the ideal compromise when you want your own space, staying in a dorm doesn’t interest you, or you can’t afford to stay at a 5-star hotel. These types of hotels exist in the middle by providing terrific amenities at a reasonable price. Technically speaking, there are no strict guidelines on what fits the “boutique hotel” mould. However, they do possess distinct characteristics one can easily spot.
Boutique hotels offer a comparatively more luxurious experience than regular hotels usually do. They are trendy and their focus is primarily on providing comfort and tranquillity. Oftentimes, traditional hotels rely on offering their guests extravagant amenities to create a unique experience. Boutique hotels, meanwhile, create a pleasurable experience for their guests through curating services and various offerings.
Location, location, location
One of the primary requirements of a boutique hotel building – and indeed any hotel – is a good location. Most can be found in popular areas, such as a city’s cultural hot spots. On the other hand, some reside along busy streets and others can be found in a back alley. Sometimes they are in residential areas.
At their core, the location of a boutique hotel needs to offer a key thing many guests come for: the sights. That is to say, easy access to them. These hotels make it a top priority to provide guests with an easy option to visit the best cultural and artistic spots. Additionally, their main goal regarding their location is to be the perfect starting point to explore the city.
Choosing the right location for your hotel could result in higher profits, as well as turn your establishment into another hot spot.
A lot of factors go into the budget of a boutique hotel building. This is because you obviously can’t officially open your hotel until you are beyond the construction stage. The process of opening a hotel has its own set of expenses.
Once you have chosen your prime location, you can start planning. Below is a summary of the procedure:
- Land acquisition. You can determine the land you are building on will account for roughly 14% of your budget.
- Accounting for hard costs. With an increase in construction costs, the price is rousing approximately 5.1% per year. In actuality, this is less than the growth rate a few years ago. Regardless, it’s still steep.
- Accounting for soft costs. This includes research, financing costs, permits, taxes, and legal fees. If your hotel is built somewhere that is famous for its wildlife, you will likely pay higher entitlement costs thanks to environmental concerns.
- Adding the costs of furniture, equipment, and fixtures. This is everything from each room’s carpet selection to the kitchen equipment and the dining room tables and chairs. The variety in these costs aids in accounting for the varying amounts for each room.
- Reserving expenses and working capital for opening. While not being direct construction costs, your hotel cannot open without them. Additionally, they are not a huge expenditure. Employing the right people and gathering supplies may account for only 1-4% of the budget. Put simply, they need to be in the budget upfront.
If you’re curious about the costs differences between construction and renovation, check out our article Cost of Renovation vs. New Construction Commercial.
Design requirements of a boutique hotel building
Much like how brick-and-mortar retail benefits from a good design and layout, hotels need an appealing environment. There are technically no rules declaring that a boutique hotel must be fashionable. However, being stylish is among their most distinctive characteristics, which is why they are designed to be unique. Their attention to detail and how they focus heavily on design derive from the need to make boutique hotels one-of-a-kind.
To achieve individuality, a majority of boutique hotels apply their knowledge into two components: design and culture. In doing so, they construct a unique personality for themselves. Their main goal is to provide luxury without pushing their prices too high. With that said, the rooms are, for the most part, individually decorated. Additionally, they incorporate trendy decor.
The requirements of a boutique hotel building can be boiled down to two: affordable luxury and trendy designs. To get a quote for your boutique hotel project or if you want to learn more, contact our Calgary construction location.