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SIX STRATEGIES TO FACE HOTEL CONSTRUCTION COSTS.
Contributed by JAKE ZWAAGSTRA, CEO, TRICELTA DEVELOPMENT
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For anyone exploring a new hotel project this year, there is one primary concern that comes to mind: rising costs. Material prices are still increasing with inflation, contractors are citing higher bids and a tight labor market is driving an increase in cost for the work. Amid so much uncertainty, some are inclined to“ wait and see,” postponing projects for an elusive future when the path forward is clearer. However, even if costs are high now, the cost of inaction |
is higher. Construction costs rarely decrease, and waiting will only lead to a diminished project scope and vision. Instead, consider these strategies to tackle rising costs head-on and ultimately ensure the financial success of your project.
EARLY AND ACCURATE BUDGETING The most important thing you can do on day one is to work with your owner’ s representative and project team to develop a detailed
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plan that aligns with your budget while remaining flexible enough to account for anticipated fluctuations. A well-rounded approach to cost prediction is essential, and third-party validation helps ensure accuracy. Leveraging real-time cost modeling and multiple expert perspectives provides a comprehensive financial assessment. By incorporating insights from architects, contractors and market analysts, you gain a clearer picture of project costs, helping you make informed |
50 hotelsmag. com May / June 2025 |