It was unquestionably a good year. In 2003, the top 50 Interior Design
Giants in hospitality earned $176,352,201, 1.67 percent more than in 2002—and
an increase almost 50 percent larger than that reported by the top 100
Giants.
Those increases ranged from 6.72 percent all the way up 70 percent, with
nine firms experiencing gains of 25 percent or more. Two firms reported exactly
the same earnings for the second year in a row. Decreases ranged from 1.24
percent to 53.71 percent, with five firms experiencing decreases of 25 percent
or more. An educated guess says there's a good chance that, during the study
period, the firms with the largest decreases simply found themselves in the
position of having previous work paid off and new projects in the pipeline not
earning the bulk of their fees just yet. (Comparisons aren't possible for the
six firms that didn't make the list the year before.)
For almost a quarter of the current Giants, hospitality work was the
sole source of income. The category accounted for less than 10 percent of
earnings for four firms; two of these were in the top third of the rankings.
Projects overseas generated earnings for 26 firms, with three of them deriving
100 percent of their income from jobs abroad.
The Giants' projects accounted for 57,508,360 square feet installed,
down 2.7 percent from the previous year. The total cost of furnishings,
fixtures, and construction was $5,690,128,371, down 1.86 percent. The figures
also indicate Giant fees at 3.1 percent of project costs, up 3.33 percent from
2002.
During 2003, 15 Giants began working in areas new to them: three each in
hotels and country clubs; two each in casinos, resorts, and time shares; and
one each in restaurants and restaurant branding, cruise ships, gourmet fast
food, and fitness facilities.
Hotels accounted for 48 percent of Giants income, up 1.2 percentage
points. (The previous year's increase was also 1.2 percent—coincidence or the
beginning of a trend?) For the first time in several years, the resorts and
spas category accounted for a greater portion of earnings (17 percent) than did
restaurants (16 percent); five years ago, restaurants accounted for 2.27 times
more than resorts and spas did.
As usual, not all 50 Giants engaged in all the possible hospitality
project types—and not all report what they're up to. We do know, however,
that 29 firms designed 539 restaurants, up from 474. Although resort-spa income
beat restaurant income, and resort-spa square footage doubled, the actual
number of resorts and spas completed declined by 7 percent. In another switch,
casinos led country clubs 8 percent to 7 percent, respectively, for the first
time in three years—even though square footage for casinos was halved and
country-club square footage increased 45 percent.
For all the intriguing tidbits, the bottom line remains. The 50
hospitality Giants not only grew, but they also grew faster than the top 100
Giants.
Fastest-Growing Firms (by ranking)
Firm
2004 rank
2003 rank
Brennan Beer Gorman Monk/Interiors
6
13
RTKL Associates
9
19
Forrest Perkins
20
32
Duncan & Miller Design
23
37
Design Forum
33
44
FRCH Design Worldwide
35
40
Judd Brown Designs
40
45
Hotel Design Consultants
41
50
Firms With Largest Fee Increase (by value)
Firm
2004 rank
fee increase
Wilson & Associates
2
$3,420,000
Gettys Group
4
$1,900,000
RTKL Associates
9
$1,900,000
Brennan Beer Gorman Monk/Interiors
6
$1,595,000
Duncan & Miller Design
23
$815,991
Leo A Daly
13
$779,900
Forrest Perkins
20
$698,144
Wimberly Allison Tong & Goo
8
$483,000
Design Forum
33
$476,200
Yates-Silverman
15
$433,000
Hospitality Giants
2004 rank
Firm, headquarters
Hosp. fees (millions)
Installation value (millions)
Sq. ft. (millions)
2003 rank
01
Hirsch Bedner Associates Santa Monica, California
hbadesign.com
The first installment of the three-part annual business survey of
Interior Design Giants, January 2004, comprised the 100 largest firms ranked by
interior design fees for the 12-month period ending September 30, 2003. The
second 100 firm ranking was published in July. This is the the final
installment, listing the top 50 hospitality Giants.
Interior design fees include fees attributed to:
All types of interiors work, including commercial office,
hospitality, retail, medical, and residential.
All aspects of a firm's interior design practice, from strategic
planning and programming to design and project management.
Fees paid to a firm for work performed by employees and
independent contractors who are "full-time staff equivalent."
Interior design fees do not include revenues paid to a firm and
remitted to subcontractors that are not considered full-time staff equivalent.
For example, certain firms attract work that is subcontracted to a local firm.
The originating firm may collect all the fees and retain a management or
generation fee, paying the remainder to the performing firm. The amounts paid
to the latter are not included in the fees of the collecting firm in
determining its ranking.
The data was compiled and analyzed by the Interior Design
market-research staff in New York: Laura Girmscheid, tabulation supervisor, and
Wing Leung, research manager. Judith Davidsen is a frequent contributor to
Interior Design.