Modular construction is revolutionizing building construction, especially in the hotel industry. Instead of having to build the entire hotel from the ground up, modular construction pushes most of the construction to happen off site. This type of construction is incredibly appealing, especially to first-time hotel investors looking for a smart real estate investment.
Historically, the construction for a hotel development occurs on-site. All your raw materials are delivered to the site, where they are assembled by various tradesman and sub-contractors. The foundation is poured and the framework is built. Each floor is set up, and individual rooms are then constructed and finished as mechanical, electrical, and plumbing systems are established.
So what does modular construction offer? Modular construction refers to the modules that are constructed off site and then delivered to the construction site to be connected together. In the case of hotels, this often means that each room is built as a module off site. The rooms are shipped to your construction site and then the rooms are hoisted and stacked and sealed together, very much like legos. Instead of building your entire building from scratch on-site, you are able to construct your hotel into smaller sections that are later placed together. There are numerous benefits to modular construction, including:
Hotels benefit disproportionately from modular construction because most of the guest rooms are essentially the same and easy to replicate. By having most of the construction take place off-site, hotel developers often save time and money in the actual on-site construction, since the rooms are already built. In addition, because of reduced construction time, there are potential savings associated with construction financing being a shorter term. There are also actual material savings using prefabricated modular construction. The repetitious nature of modular assembly allows carpenters and tradesman to bring material wastage down to a bare minimum. Additionally, construction traffic delays are shorter, and your development timeline is shorter, allowing you to make it to opening day and realize a return sooner. There is probably a good chance that a prefabricated construction company is able to buy lumber, steel, plumbing, and electrical equipment at better prices than most local builders, simply because of their volume and purchasing power.
Mass production allows you to speed up not only construction but also allows developers to have better quality. Modular construction reduces a lot of the variable guesswork in on-site construction from room to room, ensuring that each room’s construction will be consistent and predictable. Even the tiny details like screws and nails go into the exact same place, for each room module. It might also be important to note that indoor factory building doesn’t expose the materials or tradesman to natural elements, especially if you’re thinking about building in a cold or rainy climate. Naturally, the materials stay dry and worker productivity remains high when you’re inside controlled environments.
We predict that modular construction will only get more popular, and will allow hotel developers to speed up their rate of development without sacrificing quality. Moving ahead, modular construction companies are now even offering to build rooms with your FF&E (furniture, fixtures, and equipment) already built in, so hotel developers have even less to worry about when preparing to open doors and getting to revenue.