Five risks delaying openings

- Kiko Zhou outlined five risks that most delay hotel openings, saying about 70% stem from information-flow failures. - The thread offered procurement-focused tips to reduce delays at pre-opening stages. - The core point: better information and procurement coordination can cut opening delays and associated carrying costs. (x.com)

Hotel openings often slip for reasons that have little to do with pouring concrete. Kiko Zhou, writing on X, said roughly 70% of delays come from broken information flow before opening day. (x.com) In hotel development, the pre-opening phase is the stretch between construction handover and the first guest check-in. That period covers procurement, staffing, systems setup, training, and testing, while owners keep spending before room revenue starts. (jll.com) (hoteldevelopmentguide.com) Zhou framed the problem around five recurring risks that delay launches, with procurement and coordination at the center of the list. Her thread focused on decisions made before opening, when late approvals, missing specifications, and unclear ownership can push orders and installations off schedule. (x.com) Industry advisers describe the same pattern in broader terms. JLL says clear plans, early team formation, and close stakeholder coordination are core to a successful pre-opening, while Stirling Hospitality Advisors says delayed approvals and long-lead operating supplies and equipment can push back readiness across the property. (jll.com) (stirlinghospitality.com) Those delays are expensive even before a hotel misses its first booking. Hotel Development Guide says pre-opening is the stage when capital is still being deployed without matching revenue, and Global Asset Solutions says postponed openings hit cash flow, pre-opening costs, and brand positioning at the same time. (hoteldevelopmentguide.com) (globalassetsolutions.com) A 2019 research summary distributed by Zawya put numbers behind one part of Zhou’s argument. It said more than 67% of new hotel openings were delayed by poor communication, contractor time pressure, and late third-party deliverables during handover. (zawya.com) Procurement is one of the easiest places for an early miss to compound. Stirling Hospitality Advisors says operating supplies and equipment orders need clear timelines because long lead times and supply-chain disruptions can leave guest rooms, back-of-house areas, or public spaces physically unfinished for operations even after construction is largely done. (stirlinghospitality.com) That has shown up in public examples as well. The Points Guy reported in 2022 that furniture and equipment delays were pushing back openings at projects ranging from Nantucket inns to large urban luxury hotels, including Raffles Boston. (thepointsguy.com) Zhou’s thread turns that industry problem into a management one: define who approves what, lock specifications earlier, and keep one current version of the opening plan. The closer those decisions sit to purchasing and installation deadlines, the more likely a hotel is to keep paying carrying costs while waiting to open. (x.com)

Get your own daily briefing

Scout delivers personalized news, insights, and conversations tailored to your role and industry.

Download on the App Store

Shared from Scout - Be the smartest in the room.