The answer to this question is obvious, but also not…
Continue reading: Hotel Opening Delays: Why Are They So Common?
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Well, just look at the BER airport fiasco - such happens with residential and commercial properties as well. Construction chugs along and its looking like the project will be complete. Then it is inspected for occupancy and some issue with the life safety design is identified. Sometimes entire elements have to be ripped out, redesigned and rebuilt.
Then the lawyers get involved.
@ jfhscott -- Obviously that's the prime example of a construction mess, heh. But the difference is that new flights were never planned from the new airport (or terminal, really) until it was actually ready. It's not surprising to me when hotel openings are delayed by a long time, but what surprises me is when they start accepting reservations.
Seems pretty simple and obvious. Hotels provide perishable goods and there costs of producing those goods are by and large fixed. So opening and having an underutilized hotel for weeks/months is a big lossmaker. It's usually not feasible to find sufficiently many guests last minute, so you want to allow bookings ideally for a few months before opening .
So what can delay opening? Well, you need all sorts of permits, licenses, and so on to run a hotel. Food service and liquor license, health department permit, fire permit, licenses to run spa and swimming pool, personnel with certain qualifications/degrees (especially in Europe), cable TV registration/plan, broadcast licensing (e.g., to play music in restaurants and bars), etc.
Obviously, what's needed is gonna vary from jurisdiction to jurisdiction (e.g., in Germany, some very large hotels may require a staff council).
Any of the things mentioned can be a holdup.. and it's not a complete list (elevator inspections....)
And, of course, hold-ups aren't limited to licenses and permits. Could also be that a part penciled into the building's plan isn't available and unique enough that you can't replace it with something else.
Hold-ups coupled with strong financial incentives to be aggressive about opening due to hotels' cost structures then explain the phenomenon.
I thought this article was written due to delayed Waldorf Astoria Cacique opening which I booked for February 2025. Add this one to the list too. I wonder what compensation I'll get.
Ben, do you have any additional info on the delayed opening of the St Regis Belgrade? I have a reservation for mid October and the reservation is still active…
Officially it opens on March 15 now. My reservation didn't get canceled yet. Do I get a compensation from the hotel or from Hilton Honors? I booked with points.
I’m booked at the Thompson Palm Springs in less than two weeks and it looks like the opening date has yet again been pushed out. This will be the second time my reservation won’t be honored. The last time, FWIW, I was not offered points, just a “matching rate” at the Hyatt Palm Springs (which if you’ve been would know it’s one of the most outdated and poorly managed Hyatt properties) where the rack rate was less than half of the rate at the Thompson. Gee, thanks!
Obviously there are some properties that are way too overly optimistic, but to give hotels in general some benefit of the doubt; it's an extremely fine line between thinking you're ready to open (or at least more or less ready), and then finding out something isn't right and needing to delay. To jfhscott's point, it's especially true with a commercial project due to liability issues, and there are countless number of things to consider/that can go wrong.
Owners lose more money on a complete but empty hotel over compensating guests but have rooms filled.
I also am booked February 2025 for one week. I have not heard anything regarding cancellation. In fact last week I contact Hilton Diamond desk as I was considering adding additional night and noticed on line it appeared availability was significantly curtailed until June. Was told only information they had was property was accepting reservations Feb 1 2025 and continue to watch or call back if needed help securing additional night . Plan to just watch.
“Heck, you could probably make a business of just booking new hotels when the openings are first announced, and then seeing what you’re offered when they’re canceled.”
That sounds like an excellent business plan and raison d’etre for a new travel blog! 😉
Ben are you going to check out the REGENT hotel in Santa Monica? Its opening October 1st. Was planning to go myself, but still put off by the high resort fee being $90 even with points. Would like a through review from you or someone.
Okay, curiosity but me and I looked - it at least includes a $50 dining/spa credit per day, electric bike rentals and a waived pet fee but that’s still outrageous. At least electric bikes are somewhat useful in Santa Monica. Considering the near-limitless dining choices in the area, the hotel’s food would need to be spectacular to make it worthwhile and I’m sure $50 doesn’t cover much.
I think its just normal for humans. Money pressures on all sides. Miscalculations.
The only constructions that I have witnessd at blazing speeds either ontime or early was in Hong Kong.
In my time there, they built two additional cross harbour tunnels, a large airport way out there, which need a cross suspension bridge, not only a highway, but also the city train right to the airport.
Yes its corrupt as any where else in the world, govt, constructions, lack of human rights for workers, but they complete it.
The same for the buildings. Make it and make money. Late, lose money.
Meanwhile they were building a huge sanitation project on the HK Island from back to front under the mountain. Move over Switzerland.
What is strange in this specific hotel San Regis Belgrade is the date for new year's eve are not bookable ... like they are sure they will have some more delays
Actually, @Ben, I had a flight booked in to BER in December the year the airport was initially planned to open - 2012 if I recall correctly. I received a rebooking notice telling me that my flight would be landing at the old airport. Obviously, it wasn't a particularly big issue other than having to change my plan for getting into the city.