2010 Hospitality Giants

2010 Hospitality Giants There are more than a few reasons for the top 75 Interior Design Giants in hospitality to be op­timistic as they slog out of the Great Recession. Although­ fees in the sector were down 21 percent compared to the previous reporting period, more projects were completed than were canceled or postponed. That added up to a net gain approaching $43 million. Currently, 69 percent of the firms are predicting that hospitality will soon stabilize or improve. That's especially good news, since more than half of these Giants reaped 90-plus percent of their fees from hospitality.

Growth may be less likely, however, to come from the category's mainstay, hotels. Merriam-Webster's Collegiate Dictionary added the word staycation in 2009, and the hospitality Giants have felt the effects of that trend. The travel business was down by 4 percent in fiscal year 2010, with luxury hotels taking the biggest hit. Casino operators also seem unwilling to roll the dice. Cruise lines appear more confident. Design fees for ships went up to 2 percent, a huge jump from 2006, when that segment barely made the list. Also on the bright side, res­taurant work is up—to 12 percent of income. Bars, lounges, and nightclubs are also on the rise.

No matter the project type, these Giants are doing more with less. Nearly a quarter of them report that at least 50 percent of their work is eco-friendly. Sustainable practices and materials have become an easier sell. As one firm's spokesman says, it's a reverse pitch: "Clients tell us how green they are willing to go." Two years ago, barely over 25 percent of hospitality projects were considered sustainable. And renovation, besides being environmentally friendly, is more consistent with the economic times than?new construction. For the first time since 2006, renovations beat out new construction in terms of the number of projects generated. Twice as many hospitality Giants worked exclusively in renovation than solely in new construction.

Other more-with-less areas are employees and salaries. With average fees per design staff member sliding down to 2007 levels, hospitality Giants are continuing to get leaner. Layoffs weren't as harsh as in the dark days of early 2009, but 7 percent of staffers got pink slips. Of those still on the payroll, principals and partners are feeling the most pain. Their salaries now average $140,000, which is $10,000 less than the year before. Only designer­-level employees are getting a little extra cash, with incomes­ ticking up $2,000.

Still, tumult has created opportunity. One Giant in the top 25 reports having leveraged the downturn by hiring from the larger talent pool: "We believe in the industry, so we are building the dream team during this time." Someone from a top-10 firm put it more bluntly: "We have recruited terrific new staff from competitors." In fact, it was a very good year for some. Of the top 75, 12 are new to the list—including Steelman Partners, which landed at number 14 with earnings of more than $6 million.

Overall, the hospitality Giants predicted that fees from the segment would be up 13 percent in the next reporting period, pushing combined income to $456 million. That's still a far cry from the $589 million two years ago. However, by exploring new areas of the business, building the brand, promoting green practices, and staying efficient, the hospitality Giants could be on the verge of climbing out of the hole that the credit crunch dug for them.

2010 Rank
Firm

HQ; Branch Offices; Website
Hospitality Fees
$ Value Installed
Sq. Ft. Installed
Design Staff
2009 Rank
1

HBA
Santa Monica, CA; Atlanta; Brisbane, Australia; Dubai; Hong Kong; Tokyo; London; Melbourne, Australia; Manila, Philippines; New Delhi; San Francisco; Shanghai; Singapore
HBA.com
$50.011

$2,950.65

28.10

461

1

2

Wilson Associates
Dallas ; New York; Los Angeles; Abu Dhabi; Cochin, India; Shanghai; Singapore
wilsonassoc.com
$47.025

$3,000.00

NR

286

2

3

Gensler
San Francisco; Abu Dhabi; Atlanta; Austin; Baltimore; Beijing; Boston; Charlotte, NC; Chicago; San Jose, Costa Rica; Dallas; Denver; Detroit; Dubai; Houston; La Crosse, WI; Las Vegas; London; Los Angeles; Minneapolis; Morristown, PA; Newport Beach, CA; New York; Phoenix; San Diego; San Francisco; San Jose, CA; San Ramon, CA; Seattle; Shanghai; Singapore; Tampa; Tokyo; Washington, DC
gensler.com
$32.383

$500.00

7.00

820

3

4

Bilkey Llinas Design Associates
Palm Beach Gardens , FL ; Hong Kong
bilkeyllinas.com
$22.438

NR

NR

122

5

5

Leo A Daly
Omaha, NE; Atlanta; Dallas; Denver; Honolulu; Houston; Las Vegas; Los Angeles; Miami; Minneapolis; Phoenix; Washington DC; West Palm Beach
leodaly.com
$15.795

NR

NR

90

6

6

Rockwell Group
New York ; Madrid; Dubai
rockwellgroup.com
$15.489

$70.50

0.93

89

4

7

Daroff Design Inc + DDI Architects P.C.
Philadelphia ; Baltimore; Shanghai
daroffdesign.com
$13.288

$175.00

NR

42

8

8

HOK
St. Louis; Chicago; Atlanta; Dallas; Denver; Houston; Los Angeles; Miami; New York; San Francisco; St. Louis; Tampa; Washington DC; Calgary, Canada; Ottawa, Canada; Toronto; Vancouver, Canada; Beijing; Hong Kong; Shanghai; Singapore; London; Mumbai; Dubai
hok.com
$12.504

$1,895.00

7.75

312

7

9

DiLeonardo International, Inc
Warwick , RI ; Hong Kong; Dubai; Makati City, Philippines
DiLeonardo.com
$9.347

NR

NR

81

13

10

BBG-BBGM
New York ; Washington DC; Scottsdale, AZ; Shanghai
bbg-bbgm.com
$9.025

NR

NR

40

9

11

Baskervill
Richmond , VA ; Beijing
baskervill.com
$7.579

$607.10

5.74

17

11

12

Pierre-Yves Rochon
Chicago; Paris
pyr-design.com
$7.050

$1,750.00

1.88

39

14

13

KNA Interior Design
Los Angeles ; Shanghai; Mexico
knadesign.com
$6.480

$551.60

2.83

27

25

14

Steelman Partners
Las Vegas ; Zhuhai, China; Macau; Vietnam
steelmanpartners.com
$6.093

$216.00

0.48

60

--

15

Stonehill & Taylor Architects
New York
stonehilltaylor.com
$5.492

$150.00

1.50

31

17

16

FRCH Design Worldwide
Cincinnati ; Brazil
frch.com
$5.340

NR

NR

95

10

17

ForrestPerkins
Dallas ; Washington DC; San Francisco
forrestperkins.com
$5.272

NR

NR

30

19

18

The H. Chambers Company
Baltimore
chambersusa.com
$5.129

$47.00

1.20

11

20

19

Callison
Seattle; Dallas; New York; Los Angeles; Dubai; London; Mexico City; Shanghai; Beijing; India
callison.com
$5.040

NR

NR

88

12

20

JOI-Design Interior Architects
Hamburg , Germany
JOI-design.com
$4.680

$65.00

NR

32

23

21

Gettys
Chicago ; Irvine, CA; Miami; New York; Dubai; Hong Kong
gettys.com
$4.665

$100.00

NR

49

16

22

sfa design
Santa Barbara
sfadesign.com
$4.656

$65.00

0.70

9

34

23

WATG
Irvine , CA ; Honolulu; Seattle; London; Orlando; Singapore
watg.com
$4.473

NR

NR

46

32

24

DESIGN Duncan Miller Ullmann
Dallas ; Shanghai
designDMU.com
$4.374

$350.00

4.50

55

15

25

HFS Concepts 4
Long Beach , CA ; Shanghai; Dubai
HFSc4.com
$4.100

$32.00

NR

26

31

26

Space Matrix Design Consultants
Phoenix Park, Singapore; Bangkok; Mumbai; Bagalore, India; Pune, India; New Delhi
spacematrix.com
$3.794

$227.26

3.40

260

--

27

BraytonHughes Design Studios
San Francisco ; London
bhdstudios.com
$3.710

NR

NR

31

21

28

S.K.I.N. Desig Studio
San Diego ; San Francisco; New York
skindesignstudio
$3.270

NR

NR

10

--

29

J/Brice Design International Inc
Boston ; Saudi Arabia
jbricedesign.com
$3.228

$275.00

3.15

17

33

30

Perkins Eastman
New York; Arlington, VA; Boston; Charlotte, NC; Chicago; Oakland; Pittsburgh; Stamford, CT; Toronto; Shanghai; Guayaquil, Ecuador; Mumbai; Dubai
perkinseastman.com
$3.168

$63.36

0.63

160

38

31

WESTAR Architects
Las Vegas ; Philadelphia; Phoenix
wagnarchitects.com
$3.150

$30.00

0.55

12

36

32

Smallwood, Reynolds, Stewart, Stewart & Associates
Atlanta ; Tampa; Singapore; Dubai; Abu Dhabi; Beijing; Shanghai
srssa.com
$3.062

NR

1.59

28

27

33

Looney & Associates
Dallas; Chicago
looney-associates.com
$2.850

$500.00

3.00

24

24

34

Design Development Company
Agoura Hills , CA
designdevelopment.com
$2.800

$30.00

0.50

8

--

35

HKS, Inc.
Dallas; Salt Lake City; Washington DC; Atlanta; Detroit; Ft. Worth, TX; London; Los Angeles; Irvine, CA; Orlando; Richmond, VA; Mexico City
hksinc.com
$2.769

NR

5.00

101

35

36

RTKL Associates Inc.
Baltimore ; Dallas; Los Angeles; Miami; Washington DC; London; Shanghai
RTKL.com
$2.634

$959.55

9.78

76

22

37

Heitz Parsons Sadek
West Palm Beach , FL ; Beijing
heitz-parsons-sadek.com
$2.632

$41.00

1.32

31

45

38

Design Continuum / TRIO-DCI
Atlanta ; Beijing; Seoul
designcontinuuminc.com
$2.514

NR

NR

35

--

39

EDG Interior Architecture and Design
San Rafael , CA ; Bangkok
edgdesign.com
$2.323

$40.87

0.34

22

39

40

ABA Design Studio
Las Vegas
abalv.com
$2.276

$70.00

NR

13

50

41

Kay Lang + Associates
Los Angeles
kaylangassocs.com
$2.250

$750.10

2.09

16

48

42

STUDIOS Architecture
Washington DC ; San Francisco; Los Angeles; New York; Paris
studiosarchitecture.com
$2.158

$38.60

0.43

140

--

43

Resort Interiors Inc.
Myrtle Beach , SC
resortinteriors.net
$2.100

$7.20

NR

5

--

44

Design Directions International
Marietta , GA
ddi.cc
$2.070

$74.00

1.75

6

43

45

Puccini Group
San Francisco ; Madrid; Moscow; Beijing
puccinigroup.com
$2.040

$28.00

0.11

19

53

46

Indidesign
Los Angeles
indidesign.com
$1.900

$380.00

1.00

12

51

47

J. Banks Design Group, Inc.
Hilton Head, SC
jbanksdesign.com
$1.830

$5.96

0.59

17

61

48

DAS Architects, Inc.
Philadelphia
dasarchitects.com
$1.826

$35.50

0.16

14

55

49

OPX
Washington DC
opxglobal.com
$1.809

NR

1.00

31

28

50

tvsdesign
Atlanta ; Chicago; Dubai
tvs-design.com
$1.740

$34.50

0.17

40

29

51

Simeone Deary Design Group
Chicago
simeonedeary.com
$1.710

$1.00

0.04

12

49

52

indesign
Studio City , CA
indesignla.com
$1.700

$90.00

0.60

13

60

53

Montgomery Roth Architecture & Interior Design
Houston ; New Orleans; Las Vegas
montgomeryroth.com
$1.610

NR

NR

9

67

54

Loebl Schlossman & Hackl
Chicago
Ishdesign.com
$1.598

$3.00

0.01

9

--

55

VOA Associates Incorporated
Chicago; Highland, IN; Orlando; Seattle; Washington DC; Sao Paolo, Brazil; Shanghai; Beijing
voa.com
$1.592

NR

6.55

101

18

56

SmartDesign Group
Vancouver , Canada ; Culver City, CA; London; Hong Kong
smartdesigngroup.com
$1.575

$52.00

1.35

22

68

57

AvroKO
New York ; Hong Kong
avroko.com
$1.470

$1.47

0.01

14

--

58

Hatch Design Group
Costa Mesa , CA
hatchdesign.com
$1.426

$26.79

0.09

11

56

59

George Conte Design Consultants, Inc.
Greensburg , PA
georgecontedesign.com
$1.373

$25.00

3.00

6

58

60

Graham Downes Architecture, Inc.
San Diego ; Las Vegas
grahamdownes.com
$1.254

NR

NR

9

42

61

Design Group Carl Ross Inc
El Segundo , CA
designgroupcarlross.com
$1.249

NR

NR

3

57

62

BAMO
San Francisco ; Madrid
bamo.com
$1.229

NR

NR

27

26

63

Cole Martinez Curtis and Associates
Marina Del Rey , CA ; Napa Valley, CA; London
cmcadesign.com
$1.200

$35.00

NR

5

71

64

RD Jones & Associates
Baltimore
rdjones.com
$1.140

NR

NR

11

62

65

Cheryl Rowley Design
Beverly Hills
cherylrowleydesign.com
$1.135

NR

NR

12

47

66

Rottet Studio
Houston; Miami; New York; Los Angeles; Washington DC; San Francisco; Scottsdale; Shanghai
rottetstudio
$1.132

NR

NR

24

--

67

Cuningham Group Architecture
Minneapolis; Marina Del Ray, CA; Las Vegas; Biloxi, MS; Bakersfield, CA
cuningham.com
$1.112

NR

1.65

112

54

68

BG Studio International, Inc.
New York
bgstudio.com
$1.080

$20.00

0.05

4

72

69

Shea, Inc.
Minneapolis
shealink.com
$1.071

$12.90

0.14

15

74

70

RDH & Associates, Inc.
Addison , TX
rdhassociates.net
$1.035

NR

NR

2

52

71

Philpotts and Associates
Honolulu ; San Francisco
philpotts.net
$1.033

$3.69

NR

20

--

72

Stephen B. Jacobs Group/PC Andi Pepper Interior Design
New York
sbjgroup.com
$1.000

$175.00

0.40

15

37

73

Vivian/Nichols Associates, Inc.
Dallas
vivian-nichols.com
$0.996

$3.47

0.35

11

63

74

Judd Brown Designs, Inc
Pawtucket , RI
jbd.cc
$0.992

$31.00

0.20

12

66

75

C 2 Limited Design Associates
Fairfield , CT
c2limited.com
$0.960

$65.00

NR

7

--



Fees, $ value, and square feet are in million

NR - not reported





Work by Project Type (7/'09 to 6/'10 Actual)




% of Total Hospitality Fees
Hospitality Fees
Hotels (total)

55%

$223,177,570

Hotels (luxury)

30%

$119,950,039

Hotels (boutique)

12%

$48,803,289

Hotels (mid/economy)

13%

$54,424,242

Restaurants

12%

$48,826,412

Resorts

10%

$41,874,563

Condo-hotels/Timeshares

5%

$19,765,018

Gaming

4%

$17,099,999

Spas

3%

$10,190,094

Country Clubs

3%

$11,572,075

Bars/Lounges/Night Clubs

3%

$10,647,169

Cruise ships

2%

$8,103,679

Other

3%

$12,045,282

Total:

100%

$403,301,859







Work by Project Type (7/'10 to 6/'11 Forecast)



% of Total Hospitality Fees
Hospitality Fees
Hotels (total)

55%

$251,784,113

Hotels (luxury)

31%

$139,395,598

Hotels (boutique)

13%

$57,268,033

Hotels (mid/economy)

12%

$55,120,482

Restaurants

13%

$57,137,878

Resorts

11%

$51,996,771

Condo-hotels/Timeshares

4%

$18,547,033

Gaming

4%

$16,985,178

Spas

3%

$14,447,163

Country Clubs

3%

$15,488,400

Bars/Lounges/Night Clubs

2%

$10,672,679

Cruise ships

2%

$8,525,128

Other

2%

$9,956,828

Total:

100%

$455,541,171







Top 10 Firms with Most Foreign Hospitality Projects

Firm
% Abroad
Rank
Pierre-Yves Rochon

100%

12

JOI-Design Interior Architects

100%

20

Space Matrix Design Consultants

100%

26

Heitz Parsons Sadek

100%

37

indesign

100%

52

DiLeonardo International, Inc

98%

9

Bilkey Llinas Design Associates

97%

4

HBA

95%

1

WATG

91%

23

Wilson Associates

88%

2



% of Fees by Market Segment



Actual (7/'09 - 6/'10)
Forecast (7/'10 - 6/'11)
Hospitality

43%

$403,301,859

47%

$455,541,171

Offices

26%

$246,645,281

25%

$239,324,826

Retail

7%

$61,796,783

5%

$45,849,554

Healthcare/Assisted Living

7%

$65,457,729

7%

$64,062,651

Government

5%

$47,979,980

4%

$42,760,100

Educational

3%

$30,684,171

3%

$33,090,747

Residential

3%

$26,176,878

3%

$28,438,532

Transportation

2%

$21,621,519

2%

$22,419,300

Cultural

1%

$10,779,748

1%

$8,254,260

Technology

1%

$8,735,697

1%

$6,069,000

Other

2%

$22,778,971

2%

$16,649,500

Total:

100%

$945,958,617

100%

$962,459,641











Median Annual Salary
Median Hourly Rate
Principals/Partners

$140,000

$225

Project Managers

$90,000

$168

Designers

$65,000

$125

Other Billable

$43,617

$90









Firms New to the 2010 Hospitality Giants

Firm

Hospitality Fees

Rank

Steelman Partners

$6,093,360

14

Space Matrix Design Consultants

$3,794,294

26

S.K.I.N. Design Studio

$3,270,324

28

Design Development

$2,800,000

34

Design Continuum/TRIO-DCI

$2,514,311

38

STUDIOS Architecture

$2,157,600

42

Resort Interiors Inc.

$2,100,000

43

Loebl Schlossman & Hackl

$1,598,400

54

AvroKO

$1,470,000

57

Rottet Studio

$1,132,250

66

Philpotts and Associates

$1,033,298

71

C 2 Limited Design Associates

$960,000

75







Firms with Largest Increase in Hospitality Fees

Firm
2009 Fees
2010 Fees
Change In Fees
Rank
KNA Interior Design

$4,892,500

$6,480,000

$1,587,500

13

Bilkey Llinas Design Associates

$21,200,000

$22,438,000

$1,238,000

4

sfa design

$3,861,322

$4,655,960

$794,638

22

WATG

$4,094,350

$4,473,100

$378,750

23

J. Banks Design Group, Inc.

$1,565,840

$1,829,850

$264,010

47

SmartDesign Group

$1,312,500

$1,575,000

$262,500

56

Montgomery Roth Architecture & Interior Design

$1,350,000

$1,610,000

$260,000

53

indesign

$1,600,000

$1,700,000

$100,000

52

Heitz Parsons Sadek

$2,543,150

$2,631,500

$88,350

37

Puccini Group

$1,960,000

$2,040,000

$80,000

45







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