Boutique Hotel Refurbishment, Edinburgh

A boutique hotel operator in Edinburgh’s Old Town required a phased refurbishment estimate for their 24-room hotel. The project covered bedrooms, reception areas, restaurant, bar and back-of-house facilities.

The hotel needed to remain operational throughout the works, requiring a carefully phased approach. First4Estimating was appointed to produce a comprehensive estimate that would allow the operator to manage costs phase by phase while maintaining their trading income.

The hotel could not close during refurbishment, so works had to be phased across three stages — bedrooms in two halves, then public areas during the quieter winter season. Listed building constraints in Edinburgh’s Old Town meant certain original features had to be retained or restored, adding specialist trades and heritage material costs.

Noise and dust control during works needed to be factored into the programme and cost. Guest experience had to be protected in the operational parts of the hotel while construction was underway in adjacent areas.

• Three-phase estimate with independent costings per phase, allowing the hotel to approve and fund each stage separately
• Listed building compliance costs including specialist joinery restoration for original timber features and heritage-grade plasterwork
• Noise and dust mitigation allowances for occupied hotel works, including temporary partitions, out-of-hours working premiums and dust suppression measures
• Provisional sums for FF&E (furniture, fittings and equipment) per room type, with allowances for standard, superior and suite categories
• Programme-linked cost flow forecast for cash flow management, aligning spend with projected room revenue across each phase

The phased estimate allowed the hotel to maintain an average 65% occupancy during the 8-month refurbishment programme. Each phase completed within budget, and the hotel reported a 22% increase in average room rates within six months of completion. The phased cost flow forecast proved essential in managing the operator’s cash position throughout the works.