Hospitality Giants 2017 – Interior Design

 

If the latest data is any indication, the 75 firms that make up Interior Design’s list of Giants in the hospitality sector are busier than ever. We know this because, when business is good, a beautiful chain reaction of numbers happens.

Join the Interior Design Research Group to give us your feedback as well as get the first look at research, white papers and industry intelligence. If interested, send your contact information to Wing Leung at wleung@interiordesign.net

In partnership with Grohe at AF|NY

Title

1.Hirsch Bedner Associates
2.Gensler
3.Wilson Associates
4.Rockwell Group
5.Bilkey Llinas Design
6.HOK
7.HKS
8.Rebel Design+Group
9.LEO A DALY
10.YANG & Associates Group
11.Dalton Steelman Arias & Anderson (A Steelman Partners Affiliate)
12.Pierre-Yves Rochon
13.The Gettys Group
14.ForrestPerkins | Perkins Eastman
15.Populous
16.AvroKO
17.Daroff Design + DDI Architects
18.Wimberly Interiors
19.FRCH Design Worldwide
20.Baskervill
21.DiLeonardo International
22.EDG Design
23.HFS Concepts 4
24.Aria Group Architects
25.BAMO
26.Looney and Associates
27.Simeone Deary Design Group
28.ROSSETTI
29.CBT
30.BLVD International
31.Dawson Design Associates
32.Design Development Company
33.Flick Mars
34.HBG Design
35.Shea, Inc.
36.Parker-Torres Design
37.SOSH Architects
38.RDH Interests
39.C2 Limited
40.Hatch Design Group
41.Bar Napkin Productions
42.Studio 11 Design
43.JOI-Design
44.designONE studio
45.J/brice Design International
46.Cleo Design
47.Cole Martinez Curtis & Associates
48.indidesign
49.BraytonHughes Design Studios
50.DAS Architects
51.Kay Lang + Associates
52.CHIL Interior Design
53.J. Banks Design
54.K2M Design
55.CORE architecture + design
56.Rule Joy Trammell + Rubio
57.Smallwood, Reynolds, Stewart, Stewart & Associates
58.C+TC Design Studio
59.NELSON
60.HapstakDemetriou+
61.Judd brown Designs
62.Deniece Duscheone
63.HVS Design
64.R.D. Jones & Associates
65.Architecture, Incorporated
66.Group One Partners
67.Cuningham Group Architecture
68.Rodrigo Vargas Design
69.Thomas Hamilton & Associates
70.Gray Design Group
71.DLR Group
72.AECOM
73.P3 Design Collective
74.Areen Hospitality
75.Architectural Design Consultants

Fees

The hospitality Giants worked on more than 5,100 total jobs in the past reporting period. (A number that’s climbed steadily from 1,950 since 2009, when we started checking in on this group.) In so doing, the Giants completed 235 million square feet of space, a 22 percent jump from the previous report and by far the highest total ever. As a result, the firms hired a total of 640 full-time designers to employ 8,600. Those hires brought in the green, too—average fees per staffer leaped to $164,000 from $149,000.

Based on that data, it makes sense that fees would rise. That’s part of the chain reaction, too. And total fees from hospitality design did come in at $684 million, a blip of a rise from the previous $681 million but still short of the high of $700 million from the 2014 report. It’s difficult to call such a robust total a “shortfall.” Based on the work and staff numbers, however, shouldn’t that number be higher?

This speaks to the biggest business challenge that all our Giants, not just the hospitality group, face year in and year out: Getting clients to pay what the work is worth. Or as one staffer from SOSH Architects put it, the name of the game for clients is “smaller budgets, tighter timelines.” That shouldn’t detract, however, from what was overall a set of healthy numbers. The hospitality Giants drew 36 percent of their overall fees from hospitality work. For the 10 firms with the most growth, fees rose by an average of 7 percent.

Fees by project type 2017

(*in millions of dollars)
Click chart for more info

HospitalityCorporateHealthcareGovernmentRetailTransportationEducationalCulturalResidentialOther$0$200$400$600$800

TypeSalary
Hospitality684.2
Corporate537.1
Healthcare180.7
Government93.4
Retail90.5
Transportation81.4
Educational75.5
Cultural72.6
Residential52.1
Other57.3

Fees by project type 2018 forecast

(*in millions of dollars)
Click chart for more info

HospitalityCorporateHealthcareGovernmentRetailTransportationEducationalCulturalResidentialOther$0$200$400$600$800

TypeSalary
Hospitality739.8
Corporate539.9
Healthcare185.9
Government95.1
Retail97.1
Transportation82.9
Educational79.8
Cultural75
Residential57.1
Other60.1
Market Sector

Hotels remain the biggest segment of the business, 57 percent, with the luxury category being the strongest. Restaurants, bars, and nightclubs are next with 13 percent of the business, followed by resorts with 9 percent. The hospitality Giants expect these segments to remain growth areas while also listing gaming as a particular hot spot. Another sexy buzzword is boutique. Consumers want the boutique experience in everything from hotels to gyms, and design firms are happy to oblige.

Business in furniture and fixtures looks healthy, too. Total installations of F&F and construction products rose 7 percent to $20 billion. If 7 percent sounds light, think of it another way: That’s an extra $1.2 billion. Next time? The hospitality Giants hope for $23 billion.

Fees by hospitality project type 2017

(*in millions of dollars)
Click chart for more info

Hotels (luxury)Hotels (boutique)Hotels (mid/economy)RestaurantsResortsCountry ClubsBars / Lounges / Night…GamingCondos / TimesharesCruise ShipsSpasOther$0$50$100$150$200

TypeSalary
Hotels (luxury)166.5
Hotels (boutique)124
Hotels (mid/economy)102.4
Restaurants90.7
Resorts64.4
Country Clubs27.4
Bars / Lounges / Night Clubs26.2
Gaming20.9
Condos / Timeshares13.3
Cruise Ships10.9
Spas9.3
Other28.1

Fees by hospitality project type 2018 forecast

(*in millions of dollars)
Click chart for more info

Hotels (luxury)Hotels (boutique)Hotels (mid/economy)RestaurantsResortsCountry ClubsBars / Lounges / Night…GamingCondos / TimesharesCruise ShipsSpasOther$0$50$100$150$200

TypeSalary
Hotels (luxury)191.4
Hotels (boutique)117.7
Hotels (mid/economy)117.4
Restaurants109.2
Resorts67.7
Country Clubs25.4
Bars / Lounges / Night Clubs28.6
Gaming33.7
Condos / Timeshares11.5
Cruise Ships1.3
Spas8.7
Other27.1
Hospitality project types worked on last year
Click chart for more info
Type$formatted
New Construction0.4343%
Renovation0.5151%
Refresh previous projects0.066%
Hospitality project locations last year
Click chart for more info
Type$formatted
Domestic Projects0.7878%
Overseas Projects0.2222%
Top U.S. firms with most foreign hospitality projects
Click chart for more info

50%60%70%80%90%

TypeSalary
Pierre-Yves Rochon0.9
Hirsch Bedner Associates0.85
Bilkey Llinas Design0.85
Dalton Steelman Arias & Anderson (A Steelman Partners Affiliate)0.85
Rebel Design+Group0.65
Wimberly Interiors0.6
DiLeonardo International0.6
Smallwood, Reynolds, Stewart, Stewart & Associates0.57
HKS0.55
AECOM0.55
Growth

The U.S. continues to trend upward as the place where work happens. On the average, 78 percent of each firm’s work was U.S.-based—compare that to 64 percent reported in 2013. Of the 75 hospitality Giants, 93 percent see their highest growth potential in the U.S., particularly on the West Coast and in the South.

That said, international work remains big for some of the hospitality Giants, with 16 firms, 11 of them U.S.-based, completing more than half their work outside the U.S. A quarter of firms see growth potential in Mexico, 32 percent like South America and the Caribbean, and 38 percent are looking to Asia.

As a group, the hospitality Giants predict that good business will get better in the coming reporting period: $740 million in fees, 5,200 projects totaling 260 million square feet, and 9,100 employees making it all happen. To be fair, these Giants have been forecasting the $740 to $750 million level for a while now, so here’s hoping this is their moment. That’s a chain reaction we’d like to see continue.

Firms with largest increase in hospitality fees(*in millions of dollars)
Click chart for more info

0M3M6M9M12M

TypeSalary
Hirsch Bedner Associates11.5
Rebel Design+Group7.7
HKS5
AvroKO4.1
BAMO3.8
ForrestPerkins | Perkins Eastman2.8
Pierre-Yves Rochon2.3
Rockwell Group1.4
designONE studio1.2
RDH Interests1.1
Expected growth segments for next 2 Years
Click chart for more info

0%25%50%75%100%

TypeSalary
Hotels (boutique)0.8
Hotels (luxury)0.74
Restaurants / Bars / Lounges / Night clubs0.72
Resorts / Spas / Country Clubs0.6
Hotels (mid/economy)0.55
Gaming0.45
Condo-hotels / Timeshare0.28
Cruise ships0.16
Other0.48
Global growth potential for next 2 years
Click dots below for more info
#1 US South
68% growth
Written By: Mike Zimmerman
Research By: Wing Leung
Charts Designed By: Darlene Portades
Charts Built By: Joe Zeleny
Methodology

The annual business survey of Interior Design hospitality Giants ranks the largest design firms by hospitality design fees for the 12-month period from July 2016 through June 2017. Hospitality design fees include those attributed to:

  1. All hospitality interiors work.
  2. All aspects of a firm’s hospitality design practice, from strategic planning and programming to design and project management.
  3. Fees paid to a firm for work performed by employees and independent contractors who are full-time staff equivalent.

Hospitality design fees do not include revenues paid to a firm and remitted to subcontractors that are not considered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and retain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Additionally, where applicable, all percentages are based on responding hospitality Giants, not their total number. The data was compiled and analyzed by the Interior Design market research staff, led by Wing Leung, research director.

Branding Hardware : Sheehan Tile Works.

Your Brand Is Your Promise To Your Customers!

The effectiveness of a brand isn’t just before the purchase, but it is about the life of the brand & the experience it gives a consumer.

Did the product or service perform as expected? Was the quality as good as promised or better? How was the service experience? If you can get positive answers to these questions, you’ve created a loyal customer.  

A brand not only creates loyal customers, but it creates loyal employees, because your brand gives them something to believe in, something to stand behind.  It helps them understand the purpose of the organization or the business.  

Which is why we teamed up with Sheehan Tile Works out of Gilford, New Hampshire to help add a branding element to every project they finish. 

“Sheehan Tileworks has over 15 years experience with tile and stone ranging from a simple bathroom or kitchen floor to a one-of-a-kind custom steam shower. Sheehan Tileworks has the knowledge and experience to help you with your project for material selection through completion. With a full service showroom available featuring everything from basic porcelain tile to one of a kind custom projects.” 

 

From CONCEPT to REALITY.

Step 1 – We received their logo in illustrator file.

 

Step 2. Garret wanted to go without the name, and just the “S”

 

Step 3 : Garret sent us a prelim drawing.

 

Step 4. More detailed drawing.

 

Step 5. Rendering of concept drawing.

 

Step 6. Final product in Polished Brass.

 

Step 7. Side by side comparison of Sheehan branded drain cover vs Schluter stock cover.

 

When you partner with Designer Drains, you are fully supported every step of the way as we work together in developing the right design for you.

Upload your logo and let us take your business to the next level!

[wordpress_file_upload]

View their website at sheehantile.com or showroom at 43 Gilford East Drive Gilford, NH

Designer Feature : Phyllis Harbinger & DCI Studio

Bathroom & Bedroom Transformed | Ritz Carlton Residence

A comprehensive approach allows Design Concepts Interiors to work with clients at various stages of the process to align with project goals and aspirations. DCI Studio will be there to guide and collaborate with you from concept through completion. Below are a couple of some of the amazing transformation pictures from a private bathroom conversion and also the award winning interior at The Ritz Carlton Residence.

Private Bathroom

Our Client had an 1867 Victorian home overlooking the Hudson River. The client wanted to combine a vintage hall bathroom complete with yellow tiles and annex an adjacent small guest room to create a wonderful spa bathroom for her two daughters.

We incorporated a free standing tub with chroma therapy, a large shower with bench and new privacy window, allowing natural light to enter the space. A private WC with a frosted glass enclosure and a double vanity were in order, allowing both girls to get ready simultaneously and in style!

There are thee passage points in to the bath which we mainted including a terrace at the back of the home for private mediation.

Floor Plan Before

Floor Plan After

Ritz Carlton Residence – Model Apartment

We were hired by the developer to design a 3 bedroom/3 bath model apartment. Our design concept focused on attracting multiple buyers with a sophisticated palette of neutrals and a variety to textures. Grey, white, burnished silver and lucite juxtapose a dark walnut floor and a crisp white kitchen.

Shagreen sheaths a bar cabinet and silk dresses the windows while a Possini bubble chandelier illuminates the table for dining.The design was so successful that the model sold within the first month.  All of the furnishings and artwork were then moved to another model apartment which sold fully furnished, making this a double hit for the developer.We also won first place in the ASID Design Excellence Awards for our work on this project.

Contact DCI Studio:

8 Devonshire Court
Cortlandt  Manor, NY 10567
914.734.1383
info@dcistudio.com

Luxury Living At Its Finest : San Juan Del Sur | Hospitality Design

LUXURY LIVING AT ITS BEST, THE MOST INTERESTING INVESTMENT OPPORTUNITY IN NICARAGUA

Between the Pacific Ocean and the Caribbean Sea lies a life of luxury that many only dream of living. Here in Nicaragua, amid the beauty of sand-covered beaches, soaring mountains and breathtaking scenery, lies a place unlike any other. It is upscale luxury at its best. The fishing village of San Juan del Sur isn’t just a small port on a horseshoe shaped blue-water bay. It’s the most visited beach town on Nicaragua’s Pacific coast and it’s easy to see why. Brimming with culture and tradition, it is home to a wide variety of shops, restaurants, bars and cafes along with a population of warm and welcoming people. Tucked away from the congestion of the big city, San Juan del Sur is just over an hour away from Managua, the capital of Nicaragua and it’s international airport. And with a temperate climate that ranges from tropical in the lowlands to cooler in the mountains, the weather is relatively pleasant all year long. 

That’s what draws vacationers, retirees, surfers and investors to this Central American country. What keeps many here is its unspoiled beauty and easy-going lifestyle. For tourists looking to settle in for some fishing, hiking, surfing or exploring, there’s no better place than La Santa Maria, the first Luxury Real Estate Development in San Juan del Sur, Nicaragua. 

This upscale gated community is a great investment opportunity for people looking for an amazing lifestyle in a safe, nurturing location with spectacular views of the village and ocean. Here you can own a rent-ready, fully-furnished two or three bedroom apartment, with two baths, a fully-equipped kitchen, an oceanfront terrace and even a private pool. If you prefer more exclusivity, you can get on the list to have the opportunity to buy one of eight 4 bedroom villas, or one of only five, 7 bedroom homes. And if that is not enough, there are also six extremely exclusive 5 bedroom Penthouses and limited 3 to 4 bedroom Junior Penthouses.

All residences have spectacular views and come equipped with high-end appliances, a washer and dryer, air conditioning, water heater and even a power generator, all included in the price of ownership.

Outside your new home, you will find 24-hour gated security, a property manager, a club house, gym and a gourmet plaza along with covered parking, a private storage area and a complete rental program that will help you maximize your investment in case you want to get rental income from this investment. 

It will be a full service community that will include the option to have daily cleaning services and if you prefer to go even more upscale, you can arrange for a butler or an in-house cook for an additional fee.

Such luxury accommodations and breathtaking surroundings may make you rethink your entire lifestyle once you get a look at this amazing gated community overlooking the azure waters of San Juan del Sur’s bay. Built on a high summit, La Santa Maria is located where the acclaimed Barlovento Hotel once stood more than 40 years ago. During it’s heyday, the hotel was host to a number of celebrities who visited Nicaragua for fishing tournaments, meetings and celebrations. Today, that same location pays tribute to its luxurious past with the upscale homes at La Santa Maria. 

So, if you’re thinking of retiring to Nicaragua or planning to buy a second home there, La Santa Maria is the place to be. Located within walking distance to town, this more than 200,000 square foot community offers residences with upscale interiors designed with the latest global trends and nature in mind. Its clean, modern and elegant architecture, built with a Mediterranean flair, giving owners everything they could ask for in a Real Luxury Real Estate Development. Find Your Perfect Getaway

As if all that isn’t enough to convince you that it’s time to invest in Nicaragua, La Santa Maria is offering pre-construction sale pricing and developer financing. Act soon because this deal won’t last forever. The first phase of the residences, which range from 2,000 square feet to over 6,000 square feet, are scheduled to be completed and ready to move in on November 2017. The entire development will be ready by 2019.

 

Find out how La Santa Maria is gaining a competitive edge in the hospitality industry. Read More

Branding In the Hospitality Industry

Gain A Competitive Edge In The Hospitality Design Industry

Luxury, as we know, is about selling a dream. That is why the truly successful luxury brands also focus on the story. The narrative, a magical fairy tale, creates the desire. What is your hotel’s story? It may be based on the location or on the founder, for example. But it must be authentic – based in truth – and then built upon to create the dream and aspiration upon which luxury brands are built.

Your brand is more than a logo, tagline, product or service. Branding is about the promise of a distinct memorable experience, what differentiates you in the marketplace. When customers recognize and back your brand, it helps lend a competitive edge to your company. A strong brand identity creates customer loyalty which is an investment that will continue to pay back on itself, for years to come. Of course branding alone cannot replace good quality.

With so much attention to detail placed on the bathroom, the shower drain is the most overlooked item, but one that guests interact with daily. A valuable missed piece of design, the shower drain is no longer an afterthought, but instead now a crucial piece of design that pulls all the décor elements together. We will help achieve this cooperatively by weaving together a bold design with striking detail, influenced by your projects surrounding area or logo. Together we will create a piece of art that will leave a long lasting impact to the guest long after their stay.

Brand Your Next Project | Click Here

Download Hospitality Brand Awareness PDF

CEO of Accor Hotels On Competing in the Hospitality Industry

AccorHotels CEO Discussion : What It Takes to Succeed in the Competitive Hospitality Industry

Sébastien detailed his thoughts about the importance of being able to anticipate change in an increasingly competitive hospitality industry

TopHotel News

During the second day of the SAHIC South America event Thursday in Buenos Aires, AccorHotels CEO Sébastien Bazin detailed his thoughts about the importance of being able to anticipate change in an increasingly competitive hospitality industry and about what he sees for the future of the business.

Bazin, one of the most prominent figures in global hospitality, has headed Accor since 2013, guiding a company with more than 4,000 properties in nearly 100 countries spread throughout the planet. Under his leadership, Accor is one of the largest hotel operators on the planet. In a wide-spanning conversation rich with ideas and valuable insights, Bazin shared his thoughts with Stephanie Ricca, editor-in-chief of HotelNewsNow.

“In today’s world, either you change or you will be change,” Bazin said.

Throughout his years as leader of Accor, Bazin has placed a heavy focus creating a company that stands out and is first to move on new ideas, thinking with an eye towards being successful in the future. He described this as key to thriving in the hotel industry, which has been growing at a steady 4 to 5 percent clip in recent decades, which is great but also challenging because it draws so much competition to the space.

A major challenge facing large-scale hotel brands such as Accor in the modern industry is upstart concepts like AirBnB, a sharing economy web platform with a vast and increasingly number of listings across the globe. Bazin emphasized that AirBnB is not the enemy, but rather a company that provides valuable insight because they have understood something about consumers that traditional hospitality stakeholders have not.

Bazin said that the hotel industry needs to learn from AirBnB as well as from the customers themselves. The modern hotel guest does not want to be seen as a number, they want to be a unique individual and their hotel experiences should reflect this desire. On the whole, price is a less important element than it once was, with customers that are now willing to pay more if it means being transformed by experiences they want to remember, learn from and share with others.

When asked about what he sees as the future of the business, Bazin said that the hotel industry must prepare for the advent of artificial intelligence, describing a scenario in which computers make organic suggestions to would-be guests. He also said evolving online payment methods is something for brands to monitor.

In terms of Accor’s immediate future, Bazin said the company has about 100 hotels in its project pipelines, 99 percent of which are not in the United States and 85 percent of which are not in Europe. Accor’s focus is instead on developing markets such as India, APAC and LATAM.

“Anybody that is driven by size makes a mistake,” Bazin said. “I prefer to be driven by local market share.”

In terms of Argentina, the host country for this event, Bazin praised it as a hospitality destination for having a rich history and wonderful cities, but said the macroeconomy is a problem because land and labor are expensive while the price per room remains low. Another challenge facing the country in terms of attracting tourists is that it has a need for more visiting flights and airlines.

Overall, his advice for people who aspire to join the hospitality industry is change and learn, not staying with the same company for 20 years as people were once likely to do.

The following projects by AccorHotels are currently underway in Latin America:

Sofitel So La Habana

The hotel will be located on the corner of the Malecón and Paseo del Prado [READ MORE…]

Fairmont Costa Canuva

The new Fairmont Costa Canuva will reside within the new master-planned seaside community, ‘COSTA CANUVA’, on the Riviera Nayarit [READ MORE…]

Mercure Itajaí

The Mercure hotel is part of the “Absolute Hotel & Business” development in Itajai [READ MORE…]

More information about AccorHotels can be found onTOPHOTELPROJECTS, the specialized service provider in the exchange of cutting-edge information of hotel construction in the international hospitality industry.

Contact
Jule Grass
Marketing Manager
Phone: +49 4261 4140 309
Send Email

Read More About Hospitality. 

New Home Owners Outspend Existing Non-Moving Owners

New Home Buyers Invest in Home Projects

WASHINGTON, DC — A new consumer spending

Analysis has revealed that, in their first year of ownership, new home buyers spend an average of more than $10,000 on new appliances, furnishings and home improvement projects – 2.6 times as much in a typical year as homeowners who do not move. The analysis, released last month by the National
Association of Home Builders, is based on the U.S. Bureau of Labor Statistics’ “Consumer Expenditure Survey,” which helped quantify the money spent to make improvements as new owners personalize their homes. The findings are significant in that they reinforce the commonly held belief that first-year new- and existing-home buyers represent a key client cohort – and prospect base – for residential remodelers, including kitchen and bath designers. Of equal significance is the impact that home buying has on renovation, as well as on the overall U.S. economy (see related graphic, below). “While construction jobs are the most obvious impact

of new homes on the economy, it’s important to realize that it doesn’t stop there,” said NAHB Chairman Granger MacDonald. “It’s the architects, heating technicians, lumber suppliers and the mom-and-pop owners at the local furniture or appliance store who are helping these buyers make their house a home.” According to the Washington, DC-based NAHB, during the first two years after closing, a typical buyer of a newly built single-family home tends to spend on average $4,500 more than a similar non-moving homeowner. Likewise, a buyer of an existing single-family detached home tends to spend over $4,000 more than a similar non-moving home

owner, including close to $3,700 during the first year. Buyers of existing homes spend $4,085 on property alterations and repairs, compared to $3,729 spent by new-home buyers and $2,232 spent by non-moving owners, the NAHB said. They also outspend new-home buyers on kitchen and bathroom additions or renovations, and purchasing and installing items such as HVAC, plumbing, electrical and security systems, paneling, flooring, siding, windows and doors, the association added.

In contrast, average spending of new-home buyers on most of these items is negligible, suggesting that new-home buyers rarely spend on these items during the first year after moving. However, when it comes to outside additions and alterations, including a new driveway, walk or fence, newhome buyers significantly outspend existing-home buyers and non-moving owners. At the same time, non-moving owners outspend home buyers on most replacements, as well as on repairs of doors, windows and skylights. Other conclusions of the NAHB analysis were that:

• The most expensive appliances in the budget of existing-home
buyers are refrigerators/home freezers,
followed by clothes washers/dryers, televisions,
computer hardware/systems and lawnmowers.
New and existing home buyers spend even more
on furnishings than appliances. During the first
year after buying a home, new home buyers spend
$3,778 on furnishings, outspending old home buyers
by 70% and non-moving owners by 530%.

• Over the two years after a move, the “typical” buyer of an
existing home tends to increase their spending on remodeling,
furnishings and appliances by more than $4,100,
compared to otherwise identical homeowners who do
not move. Remodeling projects account for half of this
extra spending and mostly occur during the first year
after closing on the house. Only the additional spending
on furnishings tends to persist beyond the first year.

• There are significant demographic differences between
home buyers and non-moving owners. Home
buyers tend to be larger households with children
– and on average wealthier, better educated and concentrated
in urban areas. “Any of these factors could
potentially contribute to higher spending on appliances,
furnishings and remodeling,” the NAHB said.

• The purchase of either a new or existing home does
not have a significant effect on spending on entertainment,
apparel, transportation and restaurant meals.

Source : Kitchen & Bath Design News September 2017 Issue

U.S. Hotel Revenue Grows

U.S. Hotel Revenue Growth Driven by Overlooked Sources in Lower Chain Scales and Secondary Markets

CBRE Hotels’ Americas Research Forecasts 2.2 Percent RevPAR Compound Annual Growth Rate Through 2021

U.S. hotels enjoyed another year of life at the performance peak in 2016 and are forecast to continue to live the high life in 2017. According to the recently released March 2017 Hotel Horizons®forecast report from CBRE Hotels’ Americas Research, rooms revenue (RevPAR) grew for a seventh consecutive year in 2016, and the prospects for RevPAR growth are projected to be solid for the foreseeable future. Whilst many have felt the reward of this sustained growth, there remains a high number of hotels that are struggling to turn a profit. Hotels in that position may benefit from cutting expenses and using an energy comparison site like Simply Switch to avoid paying excessively on bills. What is surprising, however, is the impetus for sustained revenue expansion comes from some unexpected sources.

“The hotel business is cyclical. The upper-priced properties led the U.S. lodging industry out of the recession and have continued to achieve occupancy levels in excess of 70 percent. However, recently it has been the lower-priced properties that have shown the greatest gains in RevPAR,” said R. Mark Woodworth, senior managing director of CBRE Hotels’ Americas Research. “In the past five years, RevPAR for U.S. hotels increased at compound annual rate (CAGR) of 5.7 percent. The only chain-scale close to achieving this pace of revenue growth was the economy segment whose average annual RevPAR increase was 5.6 percent during this period. That means independent and economy chain-affiliated properties have been the primary drivers of the industry’s recent strong performance.”

Looking forward, this trend is expected to continue. From 2017 through 2021, CBRE Hotels’ Americas Research is projecting that the U.S. lodging industry will achieve a RevPAR compound annual growth rate (CAGR) of 2.2 percent. During this period, the RevPAR CAGR is projected to be 2.8 percent for the economy chain-scale. “We recognize that economy properties still achieve the lowest levels of occupancy and ADR, but investors looking for a ‘growth story’ shouldn’t overlook this segment of the industry while some of the other chain-scale categories begin to stall out,” said Woodworth.

Small Markets
In addition to lower-priced hotels, small markets also are enjoying significant RevPAR increases. In 2016, RevPAR growth for the 60 markets covered by CBRE’s Hotel Horizons® forecast reports averaged 2.8 percent. This is below the aggregate 3.6 percent RevPAR growth achieved by hotels located outside of the 60 markets. The gap in performance is expected to widen in 2017 when Horizons® universe is forecast to see RevPAR increase by 2.0 percent. Concurrently, the remaining markets are projected to achieve a 3.8 percent increase in RevPAR during the year.

“So much attention is being paid to the major urban and gateway markets,” said John B. (Jack) Corgel, Ph.D., professor of real estate at the Cornell University School of Hotel Administration and senior advisor to CBRE Hotels’ Americas Research. “Over three quarters of the new hotel rooms forecast by CBRE to enter the U.S. lodging industry in 2017 will be located in the 60 major markets we track, even though these markets represent just 48 percent of the overall national hotel inventory. The increased competition in major markets certainly helps explain why these markets have recently lagged in RevPAR growth and are expected to continue to suffer in the near term.”

Not Top of Mind
“When you read the hotel trade journals there is a growing sense of skepticism among industry analysts and attendees at the major industry conferences. I attribute this to the large sums of public company money that have been invested in upper-priced properties located in major markets,” Corgel noted. “Economy and independent hotels, as well as the secondary markets, are left off the agenda, so they are they are not top-of-mind.”

“The fact is that U.S. hotels are achieving all-time record occupancy levels and near record profit margins. A lot of money is being made from hotel operations these days. While the prospects for growth in revenues and profits are moderating, opportunities still exist. Companies should be investing in search engine optimization for hotels in order to beat their competition. Investors just need to investigate some of the historically overlooked chain-scale and geographical segments to find better returns,” Woodworth concluded.

To purchase copies of the March 2017 editions of Hotel Horizons®for the U.S. lodging industry and 60 major markets, please visit: https://pip.cbrehotels.com

CBRE Hotels is a specialized advisory group within CBRE providing capital markets, consulting, investment sales, research and valuation services to companies in the hotel sector. CBRE Hotels is comprised of more than 385 dedicated hospitality professionals located in 60 offices across the globe.

Source: U.S. Hotel Revenue Grows

National Tile Contractors Association Features Designer Drains in Tech Issue

This years technological products and trends report from National Tile Contractors Association (NTCA) featured our Designer Drains under the “Shower Systems Products” read the article below.

Designer Drains are “Jewelry For Your Shower” unique decorative replacement shower drains made in the USA from reclaimed 304 stainless steel. They will never rust, fade or tarnish and each drain supports the environment, one shower at a time. There are over 50 designs to chose from – and they also come in bronze, aluminum, steel, brass, copper, chrome nickel, weathered finishes and stone, perfectly styled to bring a final touch of beautiful decor to the bathroom. These decorative replacements support the theme of the bathroom and range from .06″ to 1.00″ thick or can be custom sized to fit any brand and size. Also available is the patented oval style drain, which is made of nickel-plated bronze and then polished for a brilliant finish.

 

Billion Dollar Buyer : Features Designer Drains

                                             What a memorable night!

Billion Dollar Buyer : Designer Drains Thinks Outside of the Box, Accepts $90,000 offer from Tilman Fertitta

Erica Abbott – November 23, 2016

Plumbing Supply

“In the season two premiere of “Billion Dollar Buyer,” Tilman Fertitta meets with Peter of Designer Drains, which is described as “jewelry for your shower.” They have more than 100 designs and are always coming up with new ideas. He hopes to take the business to the next level with their unique drains.

He found that there was a niche that needed to be explored and Fertitta agrees with the need for custom drains. They buy recycled materials for a lower price, however, they only did $200,000 in revenue last year. Meeting the team, Fertitta worries that not every employee is involved in sales and thinks they don’t take things seriously enough.

Fertitta challenges them to find new leads at the Interior Design Expo by meeting with as many people as possible and handing out their business card. Two of the employees struggle with selling and Fertitta worries about Peter’s involvement. The top two employees gave out 18-20 business cards, while the two who struggled only gave out seven cards and got a handful of emails. Fertitta tells them they need to hustle more in order to sell more drains. He also challenges Peter to design a linear drain.

Aiming to impress, they tell Fertitta that one employee is no longer working with them and they have grown more than 20 percent based on that and other changes. The linear drain costs more than $500, which surprises Fertitta given the relatively low price of their other designs. He sees it as an added expense but offers to buy 275 drains at $325 each, which totals nearly $90,000. Peter views the offer as low but after discussing with the team, decides to accept.”

Social Media Reacts to Designer Drains’ Appearance on “Billion Dollar Buyer”

twitter1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

twitter2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Curated from Business2Community 

 

Designer Drains on CNBC’s BILLION DOLLAR BUYER Season 2 Premieres 11/22

Catch us on Tuesdays premier episode for season 2 of Billion Dollar Buyer on CNBC

VIDEO: Sneak Peek – CNBC’s BILLION DOLLAR BUYER Season 2 Premieres 11/22

November 17
1:562016

VIDEO: Sneak Peek - CNBC's BILLION DOLLAR BUYER Season 2 Premieres 11/22

Season Two of CNBC’s BILLION DOLLAR BUYERpremieres on Tuesday, November 22 at 10 PM ET. Check out a sneak peek below!

In the season two premiere, billionaire Tilman Fertitta is back and ready to make big purchases from small businesses looking to grow. First up is Nicolita, a swimwear designer who hopes her Cuban style bikini bottoms are the right fit for Tilman’s business. Next up is Designer Drains, a customized shower drain company, whose owner faces a choice: buddy up with his employees or scale up his business. If they make a splash, they could get a deal of a lifetime. But if they fail, their deals could go down the drain. Will the BILLION DOLLAR BUYER take the plunge with one, both or neither?

On the show, restaurant mogul Tilman Fertitta works to change the lives of small business owners by giving them the opportunity to lock in a deal with his multi-billion-dollar EMPIREof hotels and restaurants (Mastro’s, Bubba Gump Shrimp Co., Golden Nugget Casino, and Morton’s Steakhouse to name a few!). If the small business owners impress, they could earn an order that will transform their business and their lives.

Photo Credit: Erika Goldring/CNBC

Grohe Brothers To Step Down – Hansgrohe & Axor – Industry News

 Major Shakeup With Industry Leader Hansgrohe!

ritual-david-adjaye-waterdream-axor-design-product-faucets-taps_dezeen_hero
|

Philippe and Richard are to leave their management roles at Hansgrohe SE, the company their grandfather founded 115 years ago.

Richard, who is deputy chairman of the executive board, and his brother Philippe, vice-president of design management, will hand over their duties at the German bathroom company at the end of October.

The two will remain shareholders, allowing them to remain “closely connected” to Hansgrohe and to Axor, the company’s designer brand.

“After more than 24 years in various positions at Hansgrohe SE, the time has come for me to withdraw from the operative side of business and to support the brands and Hansgrohe exclusively from a shareholder position,” said Philippe Grohe.

“Both my brother Richard and I will stay closely connected with Axor and Hansgrohe, and obviously my interest for design and culture will keep me close to the community.”

In a statement, the company said that the overall ownership structure of Hansgrohe SE will not change.

Thirty-two per cent of the shares will still be held by the family of the founder’s son Klaus Grohe – including Phillipe and Richard. American majority shareholder Masco Corporation retains 68 per cent of the shares.

Hansgrohe SE was founded by Hans Grohe in 1901, in Schiltach, Germany. It releases products under two brands: Hansgrohe and Axor, which collaborates with leading designers to develop innovative bathroom products.

Nendo has previously created a surreal furniture installation combining showers with a series of lamps for the brand, while Philippe Starck designed its Organic Tap, which uses half as much water as regular taps.

Curated From DeZeen