With a fast changing economic environment and society coming to terms with the 'new normal' in China, hotel developers are seeking for more carefully planned and executed projects, based on a sound economic footing to ensure operations.
Under such circumstances the modular building system might become one possible remedy to bring momentum to hotel development in China, particularly in remote areas. This publication provides a brief introduction of China’s modular building construction for the hotel industry.
Why modular building?
Modular building is a process in which a building is constructed off-site, under controlled conditions in a factory, delivering the consistent quality designed the same codes and standards as conventionally built hotel units.
The controlled environemnt and ‘massproduction’ allows for a significantly expedited construction timeline, saving as much as half the construction time. Companies like CIMC MBS and Deepblue Smart House are the trailbalzers for modular construction in China and has provided numerous modular building solutions for different projects around the world, including residences, student accommodation, camp accommodation, hotels, beach houses, overwater bungalow etc.
For hotel construction the modular building systems are often factory finished structures that form enclosed spaces within a completed building. Each module is fitted out before transported to deployment site for installation.
After a façade encapsules the individual modules the building will look generally the same as one built with traditional construction methods.
There are some key advantages of using the modular building for hotel industry:
Quality. Quality and consistency is the core factor for modular building systems. For each projects, modules are fully fitted out inside, in a controlled factory environment that allows for easy and frequent quality checks.
In addition, during the showroom or prototype construction phase, there will be an inspection and testing plan, which covers fit-out, plumbing, electrical, ventilation drainage and other relevant facility issues, to ensure the entire construction meet global, regional or local construction standards and building codes. Connection details and composition of the modules will also be tailored accordingly to allow the system to withstand the extreme natural conditions.
Timing. Varying from project to project, using the modular building system can cut down the total construction time by 30%-60% compared to traditional construction methods. Meanwhile on-site labor for modular building system is typically reduced by 70%, which leads to considerable benefits for access, storage of materials and Health & Safety issues in general. In addition, sourcing qualified labor in remote locations can be challenging and more time (and cost) intensive.
Flexibility. The modular building systems are based on very standardized units, yet the design and the layout can be adjusted to fulfill different project’s requirements. As a significant advancement the restrictions of designing with standard container sized units no longer apply; the production line can be adapted to different module sizes.
Cost. Modular building allows reductions in the overall capital costs by 10%-30%, through greater efficiencies of design, delivery and onsite management. For instance a standard hotel project using the modular building system, the construction costs for each module, including the FF&E, usually won’t exceed RMB 700,000.
Read the full article here.
About Daniel J Voellm
Daniel J Voellm, Managing Partner HVS Asia-Pacific, is based in Hong Kong is based in Hong Kong and has provided advice in all major markets across 18 countries in the region. Daniel Voellm started his career at HVS in the New York office; as Vice President at the global headquarters, he conducted a wide range of appraisals and market studies as well as underwriting due diligence services in 22 US states and in Canada. Daniel brings a strong understanding of the hospitality industry to HVS.
His experience in hotel and food and beverage operations in Germany, Switzerland, England and the USA is complemented by an Honours Bachelor of Science degree from Ecole Hôtelière de Lausanne in Switzerland. Daniel works closely with key institutional and private owners of hotel properties, financiers, developers and investors, and has gained a strong understanding of their investment requirements and approaches to assessing the market value of investment properties.
Daniel further advises on property and concept development and strategy. For more information please contact,dvoellm@hvs.com
About Wayne Wei
Wayne Wei is an Analyst with HVS’s Shenzhen office, specializing in hospitality consultancy. He joined HVS after completing a Bachelor of Science Degree at Ecole Hoteliere de Lausanne. Since then he has provided hotel investment advice and conducted valuations, feasibility studies, strategic advisories and other consultancy assignments in numerous cities across Greater China.
www.hvs.com
