The hotel project life cycle is the length of time that a hotel development project is intended to take until its termination, which begins with the idea for the project and ends with project exit or disposition of the hotel. It is a predictive property development model that defines the interrelated phases of the project, the managing the hotel development process and the delivery of the new hotel.
The extended life cycle of a hotel can broadly be broadly split into the pre-construction, project implementation and post-construction, encompassing the hotel’s operation – from its opening to the transfer, sale or other disposition. Alternatively, the life cycle of a hotel development project can be distinguished in more granular and sequential phases that parallel each developer’s own value chain.
|The Extended Project Life Cycle|
The value chain follows the phases of a project and describes the activities that are needed to deliver a product and where in the process value is created. The developer’s risk decreases as the project proceeds along the hotel project life cycle.
The activities in the hotel project life cycle is different from phase to phase. To perform the various project activities, the roles and responsibilities are assumed or assigned to the various stakeholders in each phase. The appropriate level of integration depends on the stakeholder’s position and function in the value chain.
A project stakeholder is a party that is involved in, subjected to or has decision-making power over the project. The different stakeholders have different levels and types of investments, interests and risks in the projects. They include the project’s owner or client, consultants, contractor/subcontractors, the funding source, land owners, surrounding communities, municipalities, politicians, and government authorities.