Trends in Asian Leisure and Hospitality Developments - Managing Construction Risks
By Patrick Daley & Colleen Galbraith
Summary: The Asian hospitality and leisure industry has seen significant growth in recent years resulting in new developments. As of June 2018, according to Lodging Economics, the region (without even accounting for China, itself a critical market) could boast a total of 1,673 current development projects providing for the creation of 349,081 guestrooms.
Hotel Developments in Asia The Asian hospitality and leisure industry has seen significant growth in recent years resulting in new developments. As of June 2018, according to Lodging Economics, the region (without even accounting for China, itself a critical market) could boast a total of 1,673 current development projects providing for the creation of 349,081 guestrooms. New Development Methods Alongside this development activity, the impact of new trends affecting the design specification of leisure and hospitality projects has intensified. There is a growing expectation that hotels and other leisure developments seamlessly integrate information technology and connectivity and prioritise environmental protection and sustainability. New construction and design methods are similarly changing the way in which leisure and hospitality projects are designed and completed, the use of prefabricated and modular construction techniques being a prime example. These exciting changes present the industry with new opportunities to differentiate their products and achieve cost savings. However, new practices in design and construction can create new legal risks or intensify existing ones. Whether you are a property owner, investor or developer, on new builds or redevelopment projects, care should be taken to ensure that change is implemented with an eye to mitigating the potential for legal entanglements. Innovative, sustainable… and clearly drafted documents Increasingly, people’s lives exist online, and guests want this to be reflected in their hotel experience. To meet this need, hotel developers are embedding technology and connectivity into their developments, enhancing and personalising guest experiences. From hotels in China which allow guests to check-in using facial recognition, to digital keys stored on guests’ phones and smart hotel rooms which automatically adapt to guests’ lighting, climate and entertainment preferences, increasingly hotels are incorporating cutting-edge and complex technological systems. Sustainability and carbon footprint issues are also growing in importance as the eco-conscious Millennial generation obtain more spending power. Leisure and hospitality developments across Asia are responding to this demand, integrating energy and water efficiency technologies, such as rainwater harvesting systems, LED lighting and photovoltaic panels into projects. While deploying new technologies may be