A hotel consists of two major components, the business operations and the physical property. These two components although distinctively different, are very much interdependent and affect the hotel’s ability to succeed. An understanding of this important duality is evident in the increasingly market driven nature of hotel design. More diverse and innovative new hotel concepts are constantly being developed based on the identification of gaps in hotel markets, or the creation of new market segments. However, the common perception of the hotel property as being a static and permanent entity remains the same. Despite the volatile and ever‐changing nature of hotel markets, shortterm demand fluctuations have always been one of the biggest concerns and topics of discussion for hotel management and marketing.While there has been plenty of research into the problems and implications that short‐term demand fluctuations have on hotel performance and profitability, common approaches to dealing with demand changes are very much restricted by the physical hotel design, and limited to strategic management and marketing tactics that are often inadequate to deal with the problem.This thesis identifies a gap in the knowledge between hotel design and short‐term demand fluctuations. Through research and design, it aims to bridge the gap by directing a design response targeted specifically at the nature of shortterm demand fluctuations. The outcome of this thesis is the design of a new hotel proposed for Wellington, New Zealand. The design demonstrates how particular flexible design interventions can allow the hotel property to be more responsive to short‐term demand fluctuations, and its potential to improve business performance and operating efficiency.
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