Good Habits: Interior Design 2008 Hospitality Giants 1-75

This business of huge increases is getting to be a welcome habit with Interior Design 's 75 Hospitality Giants. In fiscal 2008, total earnings were $588,809,269, up 24.6 percent, following a 24.4 percent increase the previous year. At six firms, hospitality earnings more than doubled—in two cases coming close to tripling—and catapulted those firms 15 to 25 places higher than their previous rankings. Hospitality is the sole source of income at 22 firms. With these kinds of numbers, it's no surprise that the First 100 and Second 100 Giants have increased the presence of hospitality in their repertoire from 16percent in 2000 to 25 percent this year.


The total value of furnishings, fixtures, and construction rose 11 percent to $18,052,293,455, while the aggregate size of Hospitality Giant projects rose 10 percent to 176,683,279 square feet. Hotels were responsible for a full 56 percent of earnings, up from 49 percent in last year's report. As usual, luxury hotels led boutique and moderate/economy venues by almost 20 points.


The contribution restaurant design makes to earnings slid from 20 percent to 7 percent over the past five years. The largest number of restaurants wasin hotels, followed by independent sites, resorts, casinos, retail venues, corporations, and clubs, the last three in a tie. Casinos and retail, however, accounted for more dining square footage than resorts, and corporations had almost twice as much dining space as clubs. The vast majority of Giant-designed restaurant space was in the U.S., followed at a great distance by Asia (with the Middle East accounting for almost two-thirds of that) and Europe, followed at another great distance by the Caribbean, Canada, Mexico, Australia/New Zealand, Africa, South America, and Central America.


Gaming held steady at 10 percent of earnings over the last two years, but is up 255 percent from five years ago. About a quarter of the Giants report using hospitality principles on health-care projects. Surprisingly, only a very slight majority of these projects are assisted-living and senior residences; the rest are hospitals, clinics, emergency rooms, and test laboratories.


The Hospitality Giants believe the best prospects are, in this order, the Middle East (with the United Arab Emirates accounting for almost two-thirds), China, the U.S. South and West, the Caribbean, and India. About 47 percent of this year's employees possess hospitality design expertise, and 45 percent of the firms claim all their employees do.


Median salaries across the board are up slightly over last year—not quite 1 percent for principals and partners, 5.8 percent for project managers, and 4 percent for designers. Strangely enough, the bosses received not only the smallest percentage raise, but also the smallest dollar amount raise: $1,250 compared with the project managers' $5,000 and the designers' $2,500. Is this democracy in action or what? Median fees produced per employee rose 43 percent over the past five years. This year, hourly rates charged by principals and partners increased 8 percent ($18); rates earned by project managers and designers both rose 3 percent ($5 and $3, respectively).


More than half the time, the Hospitality Giants and their clients have been equally interested in sustainability, and at least 26.6 percent of their projects were green during fiscal 2007-8. Four Hospitality Giants report that all their projects were green, six report that none were, and eight declined to answer the question. During the past year, 30 Hospitality Giants found client decisions to be most influenced by impressive green products that enhanced projects. What's needed now are the numbers: cost-benefit analyses, green/nongreen cost comparisons, maintenance and up-front costs, case histories, and proof that, given a choice, the public will spend its greenbacks on green venues. In other words, bringon the success stories.


See the 2007 Hospitality Giants .


See the full Interior Design Giants rankings.



Rank 2008 Firm (Headquarters | Website) Hospitality fees (millions) Value (millions) Sq. ft. (millions) Design staff Rank 2007
01 HBA/Hirsch Bedner Associates (Los Angeles | hbadesign.com ) $61.01 $3,599.826 34.284 440 1
02 Wilson Associates (Dallas | wilsonassoc.com ) $53.06 $1,000.000 NR 334 2
03 Gensler (San Francisco | gensler.com ) $46.93 $540.000 7.500 1,091 3
04 Rockwell Group (New York | rockwellgroup.com ) $22.61 $211.597 1.058 38 9
05 HOK (St. Louis | hok.com ) $21.28 $2,320.000 16.000 416 5
06 BBG-BBGM (New York | bbg-bbgm.com ) $20.63 NR NR 80 4
07 Daroff Design + DDI Architects (Philadelphia | daroffdesign.com ) $16.60 $170.000 3.000 43 8
08 FRCH Design Worldwide (Cincinnati | frch.com ) $16.07 $173.000 1.442 94 12
09 Bilkey Llinas Design (Palm Beach Gardens, Florida | bilkeyllinas.com ) $15.20 NR NR 117 15
10 Skidmore, Owings & Merrill (New York | som.com ) $14.45 NR NR 130 11
11 HFS Concepts 4 (Los Angeles | hfsc4.com ) $14.07 $330.000 NR 89 6
12 Leo A Daly (Omaha | leodaly.com ) $13.20 NR NR 212 7
13 DiLeonardo International (Warwick, Rhode Island | dileonardo.com ) $12.90 NR NR 89 10
14 Gettys (Chicago | gettys.com ) $11.39 $200.000 NR 83 16
15 Duncan & Miller Design (Dallas | duncanmillerdesign.com ) $9.97 $600.000 8.500 97 14
16 Wimberly Allison Tong & Goo (Honolulu | watg.com ) $9.13 NR NR 58 19
17 Stonehill & Taylor (New York | stonehilltaylor.com ) $8.91 $200.000 3.000 43 35
18 Pierre-Yves Rochon (Chicago | pyr-design.com ) $8.72 $1,215.000 1.350 36 33
19 Baskervill (Richmond, Virginia | baskervill.com ) $7.76 $126.424 5.353 20 30
20 RTKL Associates (Bbaltimore | rtkl.com ) $7.71 $330.000 8.200 137 13
21 Callison (Seattle | callison.com ) $7.50 $8.000 1.000 115 20
22 Forrest Perkins (Washington, D.C. | forrestperkins.com ) $7.48 $200.000 NR 80 17
23 BraytonHughes Design Studios (San Francisco | bhdstudios.com ) $7.37 NR NR 49 23
24 Resort Interiors (Myrtle Beach, South Carolina | resortinteriors.net ) $7.10 $25.629 NR 7 -
25 Looney & Associates (Dallas | looney-associates.com ) $6.80 NR 3.200 40 22
26 SFA Design (Santa Barbara, California | sfadesign.com ) $6.59 $120.000 0.850 22 50
27 Westar Architects (Las Vegas | wagnarchitects.com ) $6.18 $11.200 0.750 20 34
28 Chambers (Baltimore | chambersusa.com ) $6.10 $70.000 1.835 13 21
29 VOA Associates (Chicago | voa.com ) $5.89 $237.017 4.474 83 18
30 BAMO (San Francisco | bamo.com ) $5.58 NR NR 53 26
31 Zeff Design (New York | zeffdesign.com ) $5.39 $110.000 1.000 30 52
32 Cagley & Tanner (Las Vegas | cagleyandtanner.com ) $5.21 $73.707 1.277 26 -
33 Avery Brooks & Associates (Las Vegas | abalv.com ) $4.95 $725.000 NR 20 39
34 Smallwood, Reynolds, Stewart, Stewart & Associates (Atlanta | srssa.com ) $4.86 NR 3.591 49 27
35 CMMI (Atlanta | cmmi-redlines.com ) $4.59 NR MR 29 24
36 J/Brice Design International (Boston | jbricedesign.com ) $4.27 $200.000 4.000 20 -
37 JOI-Design Interior Architects (Hamburg, Germany | joi-design.com ) $4.20 $60.000 NR 36 47
38 Yates-Silverman (Las Vegas | yates-silverman.com ) $4.20 NR NR 27 28
39 Perkins Eastman (New York | perkinseastman.com ) $4.16 $216.700 2.167 180 36
40 TVS Interiors (Atlanta | tvsinteriors.com ) $4.16 $55.000 0.912 69 65
41 KNA Interior Design (Los Angeles | knadesign.com ) $3.99 $268.300 2.355 20 -
42 Puccini Group (San Francisco | puccinigroup.com ) $3.99 $58.000 - 31 42
43 Design Development (Agoura Hills, California | designdevelopment-group.com ) $3.75 $50.000 0.600 16 40
44 Heitz Parsons Sadek (West Palm Beach, Florida | heitz-parsons-sadek.com ) $3.57 $61.000 1.430 29 37
45 Barry Design Associates (Los Angeles | barrydesign.com ) $3.56 NR 4.000 15 -
46 Design Directions International (Marietta, Georgia | ddi.cc ) $3.41 $158.850 3.350 16 46
47 Graham Downes Architecture (San Diego | grahamdownes.com ) $3.38 $48.000 1.200 24 45
48 Oz Architecture (Boulder, Colorado | ozarch.com ) $3.32 NR NR 32 48
49 Cheryl Rowley Design (Los Angeles | cherylrowleydesign.com ) $3.16 NR 2.000 34 29
50 EDG (San Rafael, California | edgdesign.com ) $3.16 $67.000 0.450 32 41
51 R.D. Jones & Associates (Baltimore | rdjones.com ) $3.10 NR NR 22 72
52 Cleo Design (Las Vegas | cleo-design.com ) $2.60 NR 0.437 18 56
53 DAS Architects (Philadelphia | dasarchitects.com ) $2.57 $43.350 0.163 18 -
54 Adache Group Architects (Fort Lauderdale, Florida | adache.com ) $2.47 $11.000 0.950 16 49
55 RDH & Associates (Addison, Texas | rdhassociates.net ) $2.42 NR NR 15 38
56 Carl Ross Design (Los Angeles | carlrossdesign.com ) $2.35 NR NR 19 57
57 Morrison Seifert Murphy (Dallas | msmgroup.com ) $2.29 NR NR 23 55
58 Cuningham Group (Minneapolis | cuningham.com ) $2.10 NR 1.105 145 -
59 Montgomery Roth Architecture & Interior Design (Houston | montgomeryroth.com ) $2.07 NR NR 14 58
60 Shea (Minneapolis | shealink.com ) $1.97 $28.000 0.298 17 69
61 OPX (Washington, D.C. | opxglobal.com ) $1.86 NR NR 46 74
62 Thomas Hamilton & Associates (Richmond, Virginia | thomashamiltonassociates.com ) $1.83 $48.000 0.760 7 -
63 Cole Martinez Curtis and Associates (Marina del Rey, California | cmcadesign.com ) $1.81 $150.000 1.000 11 66
64 Stephen B. Jacobs Group (New York | sbjgroup.com ) $1.80 $500.000 0.300 15 60
65 Tag Studio (Lewisburg, West Virginia | tagstudio.com ) $1.78 $20.000 0.250 9 67
66 Gwathmey Siegel & Associates Architects (New York | gwathmey-siegel.com ) $1.76 NR 0.800 51 63
67 Core (Washington, D.C. | coredc.com ) $1.76 $26.000 0.180 20 -
68 Indesign (Los Angeles | indesignla.com ) $1.70 $100.000 0.500 16 75
69 Ricca Newmark Design (Greenwood Village, Colorado | riccanewmark.com ) $1.66 $55.623 1.011 17 59
70 Vivian/Nichols Associates (Dallas | vivian-nichols.com ) $1.64 $66.080 1.100 15 -
71 Paradigm Design Group (Cypress, Texas | paradigm-design.com ) $1.63 NR NR 9 68
72 Creative Design Concepts (Simi Valley, California | cdcsv.com ) $1.59 $7.649 0.286 8 -
73 Group One Partners (Boston | grouponeinc.com ) $1.57 $230.000 NR 10 62
74 HVScompass Interior Design (Rockville, Maryland | hvscompass.com ) $1.56 $48.100 1.942 17 -
75 J Banks Design Group (Hilton Head Island, South Carolina | jbanksdesign.com ) $1.48 $4.241 2.029 23 64

Hospitality Fees & Percentage of Work by Category (Actual, 7/07–6/08)

Project types % of total hospitality fee income Hospitality fee income
Hotels (in total) 56% $327,629,054
Hotels (luxury) 37% $220,324,295
Hotels (boutique) 9% $52,115,143
Hotels (mid/economy) 9% $55,189,617
Resorts 13% $78,862,866
Gaming 10% $56,280,759
Restaurants 7% $40,808,426
Condo-hotels/time-shares 6% $35,506,556
Spas 3% $17,631,310
Country clubs 2% $10,054,939
Bars/lounges/nightclubs 2% $10,408,595
Cruise ships 1% $4,847,341
Other 1% $6,779,422
TOTAL 100% $588,809,269

Hospitality Fees & Percentage of Work by Category (Forecast, 7/08–6/09)

Project types % of total hospitality fee income Hospitality fee income
Hotels (in total) 57% $362,915,592
Hotels (luxury) 39% $245,648,305
Hotels (boutique) 10% $66,375,171
Hotels (mid/economy) 8% $50,892,116
Resorts 14% $91,878,205
Gaming 8% $53,079,778
Restaurants 7% $42,433,705
Condo-hotels/time-shares 6% $36,859,531
Spas 3% $20,059,071
Country clubs 2% $10,991,598
Bars/lounges/nightclubs 2% $10,355,849
Cruise ships 1% $4,427,504
Other 0.1% $776,627
TOTAL 100% $633,777,460

Percentage of Fees by Project Types

Actual (7/07-6/08) Forecast (7/08-6/09)
Hospitality 50% %588,822,174 51% $627,742,618
Office 23% $274,230,839 23% $286,411,141
Retail 10% $123,028,145 12% $143,243,717
Residential 4% $46,509,015 3% $43,040,553
Health care/Assisted Living 3% $39,259,668 3% $39,279,999
Government 3% $35,017,140 3% $35,816,113
Educational 2% $24,181,232 1% $16,614,446
Museum/Cultural 1% $12,708,822 1% $11,998,046
Transportation 1% $12,142,000 1% $11,956,372
Technology 0.4% $4,844,220 0.4% $5,381,896
Other 2% $18,243,511 2% $20,685,264
TOTAL 100% $1,178,986,766 100% $1,242,170,164

Fee Scales

Fee Scales (median) Annual salaries Hourly rates
Principals/partners $150,000 $243
Project managers $90,000 $155
Designers $65,000 $118
Other billable $50,000 $85

New to the 2008 Hospitality Giants

Firm Hospitality fees Rank
Resort Interiors $7,100,000 24
Cagley & Tanner $5,214,030 32
J/Brice Design International $4,270,000 36
KNA interior Design $3,990,000 41
Barry Design Associates $3,560,000 45
DAS Architects $2,574,500 53
Cuningham Group $2,096,972 58
Thomas Hamilton & Associates $1,832,843 62
CORE $1,755,000 67
Vivian/Nichols Associates $1,637,360 70
Creative Design Concepts $1,590,670 72
HVScompass Interior Design $1,560,000 74

Firms with Largest Hospitality Fee Increase

Firm 2008 fees 2007 fees Change in fees Rank
Gensler $46,930,000 $30,800,000 $16,130,000 3
HBA/Hirsch Bedner Associates $61,014,000 $47,594,000 $13,420,000 1
Rockwell group $22,614,190 $13,120,000 $9,494,190 4
Wilson Associates $53,064,000 $43,904,000 $9,160,000 2
Bilkey Llinas Design $15,200,000 $8,100,000 $7,100,000 9
FRCH Design Worldwide $16,066,700 $10,626,532 $5,440,168 8
Stonehill & Taylor $8,910,504 $3,885,511 $5,024,993 17
Pierre-Yves Rochon $8,720,550 $3,969,000 $4,751,550 18
sfa design $6,591,464 $2,511,600 $4,079,864 26
Baskervill $7,756,140 $4,057,680 $3,698,460 19

Firms with Most Hospitality Projects Outside the U.S.

Firm % abroad Rank
JOI-Design Interior Architects 100 37
Heitz Parsons Sadek 100 44
Bilkey Llinas Design 97 9
Wilson Associates 85 2
HBA/Hirsch Bedner Associates 81 1
HOK 80 5
indesign 75 68
Duncan & Miller Design 70 15
Pierre-Yves Rochon 60 18
DiLeonardo International 60 13
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