Jones Lang LaSalle Hotels: Avoiding Common Pitfalls in Hotel Project Development

In its most recent FocusOn report, FocusOn Hotel Project & Development Services, Jones Lang LaSalle Hotels provides a how-to guide to avoid development pitfalls from pre-construction through post-construction for hospitality projects. The report is co-authored with Jones Lang LaSalle`s Project and Development Services (PDS) team—a group of 400 professionals that undertakes over 5000 projects annually. Examples of projects include The Four Seasons Hotel in New York, The Diplomat Resort and Spa in Florida and The Residences at the Ritz Carlton Grand Cayman.

“Cost overruns and construction delays can easily turn a profitable project into a development nightmare, often losing millions of dollars in the process,” stated co-author Gregory Rumpel, Senior Vice President, of Jones Lang LaSalle Hotels. “Construction delays are one aspect of the equation. The other side is the lack of understanding and knowledge of the process for obtaining the necessary permits, licenses and certificates to open a hotel. This can lead to costly delays.”


The report examines how to “future-proof” a design so that the property remains competitive, how to get financial and other support from local governments, how to manage a comprehensive quality control program and how to supervise the procurement process. Also highlighted is the importance of ensuring the owner`s best interests during a project.

“We have been hired for projects where parties other than the owner had been making the decisions and spending money without regard for budgetary considerations,” included Christian Charre, Vice President of Jones Lang LaSalle Hotels, who also authored the report. “An objective third party with a proactive accounting structure allows the owner to anticipate financial exposure rather than react to situations as they arise.”

In 2000, Jones Lang LaSalle was retained by a government approved fiduciary to assist in the completion of the development and pre-opening activities for The Diplomat Resort and Spa mega-resort in South Florida. Originally scheduled to open in mid-2000, the much-delayed project experienced construction cost overruns and was under scrutiny from the U.S. Department of Labor. Jones Lang LaSalle`s PDS team and Jones Lang LaSalle Hotels implemented an action plan, budget and schedule for project completion as well as management operator selection. The hotel successfully opened in January 2002.

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Jones Lang LaSalle`s Project and Development Services brings a bottom-line business focus to a client`s project and property challenges on all project types and industries. With more than 400 professionals based throughout the United States, PDS services include development management, advisory, build-to-suit, interior project management, renovation and rehabilitation, move management, furniture project management, multi-site program management and strategic occupancy planning.

Combined with the hospitality expertise of Jones Lang LaSalle Hotels, Jones Lang LaSalle offers extensive hotel project and development services.

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