Futurescoping Hotel Construction in Ireland

A shortfall of at least 1,100 hotel rooms is expected in Dublin by 2020, according to a new report by Failte Ireland. The report, "Analysis of Tourist Accommodation in Dublin 2018-2020", has found that hotel occupancy in the last year has grown to unprecedented levels. Such high levels of occupancy place Ireland at the top of the occupancy scale compared to competitor cities and effectively mean full capacity and unmet demand in a range of specific contexts. The anticipated new supply pipeline is very strong. The report has found that there will be over 5,000 new hotel rooms on stream by the end of 2020. As the market looks to address this accommodation deficit, we consider some of the trends shaping today's hotel construction market.

Smart Hotels and BIM technology

Smart hotels using new technologies to cater for guests are increasingly expected and demanded by travellers. A report by Hotels.com, "Hotels of the Future", suggests that when travellers check into a hotel in 2060 they can expect it to feature augmented reality, artificial intelligence, morphing beds, robotics, touchscreen "everything", hyper-connectivity, and much more. Rooms inside smart hotels will include sensors attuned to guests, room keys that use facial recognition, smart toilets and mirrors, and wireless temperature controls. Most smart hotels will operate based on "unmanned" and "cashless" concepts.

The ever-changing demands of travellers and the emergence of new travel design science will revolutionise the design and construction of hotels. Building Information Modelling ("BIM") technology is at the core of this hotel construction revolution. BIM technology, when combined with virtual design and construction practices, means that increasingly accurate models are available to the design team at earlier stages of the procurement process. It is anticipated that this will have a positive impact on the hotel delivery programme as well as on the developer's bottom line.

Hotel Certification Standards

The focus on ethical and sustainable development in the construction sector is intensifying and is likely to become increasingly central to the design process. Hotels may well be judged on factors such as their energy efficiency, use of safe and clean products, use of the latest solar and geothermal technology, and their carbon footprint. This will necessitate scrutiny of construction methods to ensure that they are highly sustainable. Efficient operating models that comply with BREEAM, LEED and WELL standards will be a prerequisite of any eco-hotel.

BREEAM has dominated the environmental assessment of UK buildings for nearly 30 years. We are, however, seeing an uptake in LEED (Leadership in Energy and Environmental Design), the equivalent US assessment scheme. BREEAM, as a certification standard, will probably continue to predominate in the UK because of its entrenched position. Government departments require BREEAM ratings for all their buildings and most local authorities require BREEAM as part of planning approval for developments over a certain size. However, some multinational companies looking for consistency across their global portfolios may prefer LEED. In comparison to BREEAM, the WELL building standard is relatively new. It launched in 2013 and is the world's first building standard focused on human health and wellness. As wellness is increasingly factored into the sustainability of a building project, uptake of the WELL standard seems only set to grow in the years to come.

The role of Off-site Manufacturing

The significance of off-site, or modular, construction ("OSM") as an integral element of future construction methods is well recognised and, in the hotel sector, developers and designers are increasingly turning to OSM to deliver their hotel projects. Aside from the benefits it offers in terms of addressing labour and skills shortages in the construction industry, it is also seen as a means of ensuring a lower carbon footprint, less waste and greater efficiency. Marriott International, for example, is a big believer in its benefits, using it in most of its hotel brands. In May 2017, the company launched its "Marriott Modular Initiative" in which it plans to use prefabricated guestrooms or bathrooms in more than 10 percent of its select brand signings in North America, equating to 50 hotel deals in one year. Marriott has described this initiative as a "game changer for our valued development partners, especially during a time when labour shortages can be a challenge to timely openings".

One of the risks associated with OSM arises because the developer or investor does not have visibility over delivery and, as a result, we are seeing an increase in the number of monitoring consultants being appointed who can oversee off-site activities. Another significant challenge of OSM concerns the extent to which products can accommodate variations in design as a project progresses. OSM will often require product design to be  finalised at the outset of the project so that factory production can take place in time for the stock to be brought to site for installation. This does not lend itself to variations. It also requires developers to look differently at how cash flow is organised. Contractors will need more money upfront if OSM is to be used.

Final Thoughts

The future of hotel construction is all about smarter and faster ways of building - methods that will be welcomed by those operating in the Irish market where demand will outpace supply for at least a few years to come.