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    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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