HONG KONGREPORTDECEMBER 2010Material CostTrendsAverage Wholesale Prices of SelectedBuilding Materials5,0008,3004,5007,8004,0007,3003,5006,800Costs of Materials (HK$)3,0002,5002,0006,3005,8005,3001,5004,8001,0004,3005003,80003,3001 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 809 10Month / YearAverage Wholesale Prices of Selected Building MaterialsBuilding Materials2009 20101 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8Sand ($/10 t) 750 740 740 730 730 730 730 730 730 730 790 750 730 740 730 730 730 720 720 720Bitumen ($/t) 6,880 6,620 6,620 6,440 6,440 6,540 6,740 6,807 6,973 7,040 7,093 7,240 7,380 7,500 7,500 7,500 7,500 7,433 7,400 7,440Portland Cement ($/t) 579 578 580 580 580 580 588 588 588 588 588 592 604 606 606 606 606 606 619 619Sawn Hardwood 50x75 ($/m3) 3,786 3,786 3,762 3,734 3,734 3,728 3,725 3,729 3,731 3,731 3,731 3,731 3,731 3,731 3,736 3,748 3,760 3,760 3,760 3,760Mild Steel Round Bars ($/t) 6,688 6,005 5,819 5,652 5,652 5,510 5,699 5,819 5,897 5,779 5,691 5,687 5,812 5,890 6,234 6,885 6,587 6,158 6,064 6,116High Tensile Steel Bars ($/t) 5,536 5,194 4,911 4,483 4,494 4,531 4,788 5,063 5,136 4,899 4,667 4,581 4,877 5,010 5,314 6,263 6,081 5,828 5,758 5,877(Source: Census and Statistics Department, HKSAR Government)7
HONG KONGREPORTDECEMBER 2010cost modelHOTELIn our cost model for Hotels in Hong Kong at 3 rd Quarter 2010 price level, theunit cost ranges are from HK$18,200 to HK$21,000 per m 2 and HK$22,500 toHK$27,200 per m 2 of construction floor area (CFA) for 3-star Hotels and 5-starHotels respectively. The variance in unit costs is mainly due to variations in areaproportions amongst BOH areas, F&B areas, recreational areas and guestrooms;the sophistication of external facade and hotel interiors.The cost model is based on a building solely for hotel purpose with theassociated supporting facilities. The following items are excluded:1. Site formation.2. Operating equipment such as hair dryers, trolleys, kitchen utensils, crockery,cutlery, uniform, etc.3. Room amenities and expendables such as shower curtains, soap, shampoo,etc.4. Bed linen including cushions, pillows, bedspreads and blankets, etc.5. External work and landscaping outside the building (recreational facilities onpodium roof and / or main roof are however included)6. Consultancy fees, legal, financial and marketing expenses.Cost Range (at 3 rd Quarter 2010 price level)3-star5-starRange (HK$/m 2 ) Range (HK$/m 2 )1. Foundation and substructure 1,150 ~ 1,800 1,150 ~ 2,1502. Structural frame and slabs 1,850 ~ 2,300 2,000 ~ 2,7503. External facade 1,750 ~ 2,200 3,000 ~ 3,9004. Architectural and builder’s work 2,650 ~ 3,000 2,750 ~ 3,2005. Building services installations 4,900 ~ 5,300 5,600 ~ 6,4006. Fitting-out and FF&E 5,900 ~ 6,400 8,000 ~ 8,800Total : 18,200 ~ 21,000 22,500 ~ 27,200Cost Model - 3-star HotelHK$ per m 2 Construction Floor AreaCost Model - 5-star HotelHK$ per m 2 Construction Floor Area1. Foundation and substructure1. Foundation and substructure6. Fitting-outand FF&E700060005000400030002000100002. Structuralframeand slabs6. Fitting-outand FF&E90008000700060005000400030002000100002. Structuralframeand slabs5. BuildingServicesInstallations3. Externalfacade5. BuildingServicesInstallations3. Externalfacade4. Architectural and builders’ work4. Architectural and builders’ workUpper LimitLower LimitRemarks:The cost model should be regarded as guidelines to indicate the likely range of hotel costs for earlystage cost planning. Actual costs will depend, among others, on the final design and the eventualselection of materials.8