There's no End in Sight to BC'S BUILD-IT BOOM
by Chris McBeath

While there’ll always be a market for no-surprises, cookie-cutter style lodging, new properties are far more likely to be inspired from the pages of high fashion, home and garden magazines. At least, that’s the consensus of some of the top hotel architectural design firms. The challenge for hoteliers, however, is managing the creative tension - and balance - between design aesthetics, cost, and operational efficiency so that the end product will still earn its value in high occupancy rates.

The other challenge is simply getting a property finished. These are heady days in the west where construction trades are sizzling hot commodities, and materials are at a premium. “When the construction boom took hold three years ago, I don’t think we realized how it would impact every move,” says Bob Rennie, real estate marketing expert. “Back then, we over-promised and assumed a 26-month build out. Now, we tend to under-promise and a 33-month build out is much more realistic.”

Three of the most prominent new hotel developments currently underway in Vancouver include the Loden, opening this fall, the Shangri-La (slated to open mid-2008) and the Fairmont Pacific Rim (2009). 

A Waterfront Legacy
Without doubt, 2010 was a key motivator for developer Ian Gillespie, President of Westbank Projects, to pursue the concept of a five-star, five diamond hotel next to the new convention centre expansion. Gillespie, who is emerging as one of Canada’s most significant developers, has over 30 real estate ventures in his portfolio. This includes the most striking 489-foot-high Shaw Tower, a mixed-use office and residential tower atop a newly constructed concrete deck that extends Vancouver’s traditional waterfront.

“Fairmont was the right brand for the very high end user we are trying to attract,” says Bob, who has worked with Ian Gillespie on several Westbank developments. “The reality today is that many new hotels can’t be built without the condominium asset,” he explains, “and it requires a huge master plan to combine the experiences. For example, although residents will want to be associated with the luxuries of Fairmont, there must be a degree of isolation from the transient nature of the hotel. They will want the luxury of 24-hour room service, car drop-off and a doorman without being bombarded with hotel activity and bellmen. In essence,” Bob surmises, “this type of project has functionality crashing into elegance.”

For Westbank, the solution has been to engage two separate design teams, which work under the guidance of Gillespie himself. “Unlike many projects, Ian will continue to own the completed site. Consequently, as a long term ‘legacy’ asset, he is intimately involved in choosing its furnishings, style, and how it is to be marketed,” notes Bob. “Ian even goes to Italy on scouting trips and is concerned with the selection of virtually every table lamp.”

Key Markets Develop Key Players
For the new Shangri-La property opening next year, selecting Vancouver as a flagship location is part of an aggressive plan to expand the Shangri-La name worldwide. Responsible for developing 12 “jewel” properties in 12 top North American destination cities, long-time hotelier Stephen Darling is already overseeing locations in Toronto, Las Vegas, Chicago, Miami, and New York, among others, while his European counterpart is developing sites in London, Vienna, Berlin, Moscow, St. Petersberg, and Prague. “Shangri-La has a crystal clear strategy for site development and product standards,” says Stephen. “Every one of these hotels is a next generation property and purpose built from the ground up as a five-star, five diamond facility. It’s a real point of differentiation for Shangri-La as we enter the North American and European markets. Hotels are built very differently than they were ten, and especially twenty years ago.” Stephen adds that the street address is a key criteria for Shangri-La inasmuch as the chain develops only the very best (and consequently the most expensive) real estate. Consequently, many developers choose to offset costs with fractional residences, retail, or in the case of Miami, a mega-yacht marina. 

While all properties will have what Stephen refers to as the “red thread”, an Asian-inspired, softer style of hospitality, every hotel is being built to reflect the nature of its marketplace. Chicago will likely be the most formal hotel in the group; Miami - with its intriguing blend of European, South American, and North American influences - has a clean, white Mediterranean look; and Vancouver will have a warm, West Coast elegance. Another Shangri-La thread comes as minimum property standards - every hotel ranges between 150-250 guestrooms, each at least 500 sq. ft. with bathrooms that are no less than 150 sq. ft. Every property will also showcase a luxurious CHI spa (debuting with the Vancouver opening), a floor plan that encourages a particular style of guest arrival and flow as well as a long list of amenities from custom-made Simmons mattresses, to same-height bedside tables, and desks with similar cable organizers.

Operational Finesse
With the construction of The Loden by local developers Amacon, Kor is another hotel group that’s about to make its mark in Vancouver’s hot marketplace. Like the Westbank project, costs of the hotel have been offset with an adjacent 45-storey residential tower and although now operated as a totally separate entity, both tower and hotel have a similar feel in design and décor.

“Choosing Vancouver is part of Kor’s strategy for becoming a major player in the hotel industry,” says General Manager Edel Forristal, who is no stranger to the headaches of opening upscale properties (she was on the opening team of the Whistler Four Seasons). With the Loden scheduled to open soon, Edel has been as much a spokesperson for the development as she has been mediating liaison between the developer and designer, not to mention the key advocate and strategist in delivering a product that will satiate both operational and market-driven guest needs. 

“The major tensions in developing this type of multi-use property is cost and durability since they can be diametrically opposed,” says Edel. “The home-residential feel of the design impacts furnishings significantly because what may work for the residences will not stand up to commercial use. For example, more guests have luggage on wheels, so how does that impact floor covering? From an end-use viewpoint, experience dictates that we have a keen eye for storage and heart-of-house access, let alone the myriad of questions that need to be asked, say, on the quality and style of millwork.” Edel goes on to cite the sliding panel that opens the bathroom to the guestroom, and, therefore, to natural light. “Will there be mechanical problems? Are the rollers resilient enough for extended use? How does the handle protrude? What are the risk management issues associated with a sliding door? These are the questions to be asked for every single decision.”

The Green Factor
Green, of course, is a growing consideration in any development and like most trends, is following three distinct evolutionary phases: phase one - being opportunistic with green; phase two - being realistic with green; and phase three - doing green because there’s no alternative!

For the most part, those developments already out of the ground have limited options to redesign their infrastructure to be more eco-friendly, but for any new project on the drawing boards, being green is what Bob Rennie calls future proofing. “There was a time when condos included microwaves not because the consumer wanted it, but because they would be needed for resale. This same precept now applies to green technology.”
But green technology isn’t only about less glazing on south and west facing windows, geothermal heat, or rooftop gardens. Being socially green is coming of age too. Age-diversity living is as important as placing social housing beside multi-million dollar homes. “Consumers want to find an intrinsic value beyond bricks and mortar,” notes Bob. “Whether it’s in lifestyle options where location means ‘you may never have to see your car again’ or more tangible eco-consciousness practices such as a rooftop garden, these are all elements that are fast becoming ‘musts’ in design and development.”