Motel build costs can be cut by half
Modular apartments assembled on site by an Italian manufacturer can halve motel construction costs says Ian Crooks, managing director of Resort Brokers Australia.
“Depending on specifications, the modular units will be priced from $50,000 – $60,000 per room whereas a motel room built in the traditional manner would cost $100,000 – $120,000 and the price includes a team of Italian supervisors who escort the unit to site and carry out the installation.
“Australia needs more than 100 new motels to meet demand and this concept, being built by the Italian firm of R I Spa Modular Building Systems and distributed in Australia by R I Kenco, is set to revolutionise the accommodation industry,” he said.
Mr Crooks said that while he had no connection with R I Kenco, as head of one of the country’s largest hotel and motel brokers, he had an interest in seeing the demand for motel rooms met by the construction of new properties. Built in Italy to purchaser specifications, the units are flat-packed, shipped to Australia and then deployed to site for installation.
Mr Crooks said the entire process took about two months – four weeks in the factory, 35 days shipping, a couple of days to get to site and one day for installation.
“They didn’t build Rome in a day but they can put these units up in 24 hours,” he said. “While the developer is laying foundations and creating head works for a new motel site, the units are being constructed in the factory. As a result, the time involved in building a new complex is drastically reduced. The frames are constructed of galvanized steel, they adhere to a number of Australian and international standards and are cyclone rated.
“They are supplied on the ‘turnkey’ principle, fully functional from the moment they are installed with all fittings, fixtures, furniture and electrics ready to go,” he said.
Mr Crooks claimed the mobility of the units also offered developers greater flexibility in obtaining finance for new projects. “Once they are installed, they can just as easily be uninstalled and taken to a new location. From a developer’s point of view, this is critical. Rather than lending the money to purchase the required amount of modules, most banks will simply arrange a lease. If the developer defaults, the bank can simply take back the units.
“No security is required. This means that a developer does not need to factor in the cost of building the units, drastically reducing the amount of capital required to get a project off the ground or increasing the number of rooms possible for an existing project.”
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