1. Introduction

The Hilton Sydney is a 5-star hotel positioned at the heart of Sydney CBD. The

hotel’s position near Town Hall station, Queen Victoria Building, and corporate offices

nearby attracts large amount of inbound tourism of both corporate and leisure

travelers as well as domestic visitors. The Hilton Sydney’s consumers are estimated

to be segmented at 65% corporate and 35% leisure guests. The hotel’s existing

furnishings in the lobby creates a mundane atmosphere. Despite its great

functionality for corporate guests, leisure guests would be discouraged to use the

facilities or to make reservations at the Hilton Sydney as the current furnishings

creates a professional scene, insinuating Hilton Sydney’s intended target market are

only corporate guests. This report proposes the establishment of a Concierge

Lounge within the lobby area to increase demand from both corporate and leisure

segments. The proposed Concierge Lounge will replace the existing Germani

Jewellery store within the Hilton Sydney. This report identifies the marketing and

branding strategies of the Hilton Sydney. The furniture, fixtures and equipment

schedule are also provided to transform the existing Germani store into a luxurious,

cutting-edge and comfortable lounging area with the utilisation of Hollywood Regency

inspired furniture and advanced technology. The report will also include a project

management plan and scope of work to provide a clear outline of the development

and labour work required for the completion of the project starting with the

destruction of the existing space, considering training required. Legal and regulatory

compliances; and risk management section outlines the rules and regulations Hilton

must abide by for damage minimisation and control, in accordance to the Australian

regulations. Human Resources of the project are explored in further detail as they

play significant roles in the project management plan and reassuring that the project

will be completed according to plan.

2. Marketing and Branding

2.1. Brand Positioning According to Yoopetch (2018), the brand of a firm is the image or face of the firm,

that helps consumers distinguish the said brand from its competitors. The brand

image of the different brand within the Hilton portfolio dictates the success of its

upcoming hotels and customer’s perceptions. Basu Monga and Liwa (2018) further

re-iterates that guest’s perception is affected by the positive or negative brand image

of different brands. The Hilton brand by Conrad Hilton has always stood out as one of

the most unique and innovating brands. Hilton has had success in many different

areas from luxury upper scale, full-service, a lifestyle brand and focused service

brands. This multi-billion-dollar hotel chain continues to innovate and continually

wants to optimise their existing technology to best suit guest comfort and increase

efficiency (Hilton, 2018). Hence Hilton Sydney would be the ideal place to do this and

will be the first property in Australasia to integrate new concierge technology into its

daily operations. This will reafirm Hilton’s brand promise and contribute significantly

to its differentiation strategy. Hilton Sydney competes with major brands, such as the

Westin, Four Points by Sheraton and the Grace Hotel, both in terms of proximity

within the geographic area and as they have a similar product offerings and target

market.

2.2. Market SegmentationZapara (2015) highlights that segmenting the market permits more suitable measures

to attract the targeted market and provides a competitive edge as it authorizes a

more focused brand. In the case of Hilton, this is Crucial due to the diversity of brand

offered by Hilton Worldwide, as explored in the positioning stage.

The Hilton Sydney is a high-end hotel. However, the brand’s focus is on the business

guests, due to its proximity to corporate offices. The proximity which shows the

balance between business guests on delegation in the CBD or simply to use the

conference rooms that the Hilton Sydney is very well known for as per Hilton Sydney

(2017). Hence, justifies the higher prices charged, the hotel also receives tourists

with higher disposable income due to short distance from the train station and

Sydney’s main attractions. The new concierge concept will be useful as it can better

assist attracting the segmented business guests, as the Concierge Lounge will be

very technologically advanced, utilizing smart glass systems, IPad’s for research and

most importantly harnessing hologram technology and showing new areas to the

guests in the most unique means conceivable. According to observatory research,

this hotel caters to the corporate business guests as a major aspect, estimated at

approximately 65 to 35 business to leisure guests.

Contrarily the Euclideon table and the interior design’s purpose (Hollywood Regency)

is to attract leisure groups and families to further expand in that sector and close the

gap between leisure and business guests in the Hilton Sydney.

2.3. LocationThe Hilton Sydney is located at the heart of the city, boasting one of the most

accessible and central locations in the CBD just 50 meters away from Townhall

station and 30 mins drive from the airport. The concierge itself is in Hilton’s new re-

developed hotel. It is the most expensive single-property venture by Hilton and has

reinvented the form of a traditional hotel (Hilton, 2010). The re-modeled architecture

of this property was made to be with a prominent street presence that permeates the

class of Hilton, as well as displaying Sydney as one of the most progressive and

developed cities globally. The architect hired was Johnson Pilton Walker (JPW) who

has accomplished projects such as the Art Gallery of NSW, the Opera House, and

the Macquarie Towers.

Figure 2.1: Hilton Sydney’s location.

2.4. Hilton’s Existing UtilitiesHilton Hotel has 577 rooms and the interior is well equipped with LCD TVs, wireless

network connection, recliner chairs and it offers the latest entertainment options.

Hilton Sydney also offers 23 event spaces which total approximately 4000 square

meters as per the official website (Hilton, 2010). As a 5-star hotel, it has a spa and a

gym, as a corporate 5-star hotel, it has all the amenities needed. Nevertheless, the

purpose of this assignment is to analyze the existing facilities, which in this case is

the Germani Jewellers in Hilton near the lobby. As Figure 2.2 shows, space although

beautifully decorated is now outdated and is not being utilized to its full potential.

Space should be better utilized and can be optimized to be more efficient with

Hilton’s line of goal as deduced by the brand’s vision which is to be the leaders in

innovation, they are currently doing this by introducing the world’s first concierge

robot (Newsroom Hilton, 2016). Hilton wants to be the innovator in technology, hence

being efficient and leading the market. Hilton Sydney will aim to do that, by

transferring their concierge to the jewelry shop and utilizing the latest hologram

technology to take guests on an interactive experience through Sydney.

Through further consideration and Hiltons direction of heading to enhancing the

guest experience and customer engagement through personalized experience

augmented through innovated technology. As it is now an open space (As per figure

2.3) the proposal will be made to convert the current space into a concierge lounge.

3. FF&E ScheduleVarious on-site inspections executed by our team has shown Hilton Sydney’s design

concept, of the lobby area, to be reflective of its principal clientele group, which are

corporate travellers. The existing furnishings promises comfortability, convenience

and practicality for corporate guests, however, its colour scheme is monotonous

which varies from different shades of brown, black and white. Employment of

lounging sofas and armchairs are optimised throughout the lobby area due to the

large capacity of the hotel. This includes enclosed booths and comfortable sofas in

the lobby for conversations, consultations and casual meetings of business guests.

Hilton Sydney’s current furnishings demonstrates the brand’s preference to satisfy

the needs of corporate travellers over leisure travellers. Existing furniture in the lobby

creates a mundane atmosphere as well as an uninviting environment for leisure

guests and the passer-by. This is due to the lack of texture, variety and colour in

furnishings. Hilton Sydney has a lease contract with Germani jewellery brand for the

rental of an internal room located within the lobby area. The positioning of this room

is ideal for an exclusive Concierge Lounge with leading edge amenities. The purpose

of the Concierge Lounge is to satisfy the demand of both leisure and corporate

guests by engaging advance technology and luxurious furniture to establish a warm,

comfortable and welcoming environment for all in-house guests.

Germani jewellery store is a sizable room located within the lobby area of the Hilton

Sydney. This occupied space provides external access from George St with raised

stairs to meet the ground level of the hotel, as well as an internal access point from

the lobby area. The room is structured with 2 foundational marble pillars and a small

internal room within. Rectangular display tables for jewellery pieces are placed along

the wall of the room with limited chairs for consultations. A removable circular

jewellery stand is also placed in the centre of the room for statement jewellery.

Please refer to the existing floor plan.

The Concierge Lounge area will act as a statement room within the Hilton Sydney

and consolidates the brand’s commitment to its global renown vision of filling the

earth with light and warmth of hospitality (Hilton, 2018). Meaning, the proposed

Concierge Lounge aims to satisfy the needs of both leisure and corporate guests of

the hotel. This lounge will also act as an informational centre where the use of

technology is maximised by proving guests access to IPads and the Euclideon table.

The exclusivity of the room means lower noise level and disturbance for guests who

wish to relax in the lounge. This is important for Hilton Sydney due to the high level of

noise generated from guest’s interactions and the busy atmosphere of the city.

The Concierge Lounge’s adoption of Hollywood Regency interior style brings about

warmth, comfort and luxury. Refined velvet and turfed furniture pieces paired with

polished gold linings and white marble transform the existing Germani jewellery store

into a charismatic lounge to lure in leisure travellers. The use of IPad, smart

television and Euclideon table will attract the attention of both corporate and leisure

travellers. Evidently, the utilisation of technology within hotels is imperative as it

creates a sustainable competitive advantage for the hotel against its competitors

(Bulent Ozturk & Hancer, 2014). The leading-edge, multi-user holographic table of

Euclideon enables the real-time interactions where Concierge can demonstrate a

real-life digital model of the city for directions or to show guests of Hilton Sydney’s

facilities. This newly developed technology will generate positive publicity for the

brand and align itself with the leadership value of Hilton of being the leader of the

industry (Hilton, 2018). Guests can also use IPads to search for information while in

the lounge.

The room’s public entrance from George Street will be removed followed by the

raising of the ground floor to evenly match the ground level of the hotel. Carpets will

be removed in place of light timber flooring. However, the current wallpaper of cream

pattern will be maintained. The external wallpaper of the internal room will be

changed into a textured 3D printed blocks to create curiosity for the Euclideon table

inside the room. Lightings for the internal room will be removed and a glow light strip

will be attached around the Euclideon table to enable sufficient lighting to reduce

tripping hazard, yet not affect the holographic light for users.

Upholstery has been strategically placed within the room to maximise seating

capacity. Diversified furniture structures unify the concept of Hollywood luxury in the

room by selected grey, blue, gold, silver and white colour scheme. Armchairs, sofas

and ottoman vary from shapes, size, length and colour to create more dimensions to

the room. Smart screen televisions are placed in the room to showcase informational

or promotional materials, otherwise displays digital wall art. A mobile phone charging

station is placed at the centre of the room to allow easy access phone-charging.

Domestic newspaper, magazine and tourist guides can be accessed by guests from

the counter in front of the entrance door. Due to the small space between the 2

marble pillars, a contemporary statue has been placed to create humour and

enlightenment. The Concierge counter will be placed towards the end of the room for

the attendant to observe the area and exchange encounters with guests. Please refer

to the proposed floor plan and furniture placement plan.

Hilton Sydney is a 5-star property and the furniture selected to furnish the Concierge

Lounge are of high standard and made from quality materials. Many of the lounge’s

furniture is sourced from Kathy Kou Home’s furniture brand, with hand-curated

furniture pieces, which has been featured in the media such as Marie Claire, Elle

Decorations and The New York Times. Technology amenities in the lounge are

produced by popular brands such as Apple and SamSung. It is important for Hilton

Sydney to select high-quality materials to match or even succeed customer’s

expectations of the service and amenities provided, otherwise the brand’s image of

providing quality service will be compromised (Strombeck & Shu, 2014).

Exceptionally appointed and high-quality furnishings requires high costs (refer to the

furniture costings). However, Hilton’s investment on the Concierge Lounge will

generate more interests from the Media and the public as well as cater to both 65%

corporate travellers and 35% leisure guests altogether.

4. Scope of WorkThis section of the proposal will look upon the stages of refurbishment of the existing

facility inside the premises of Hilton Sydney into the new Concierge Lounge. The key

component of the entire refurbishment is the removal and replacement of the existing

Furniture, Fixture and Equipment (FF&E). Scope of work is an important module of

any refurbishment because it lays out a foundation plan for the project that helps

keep the facility managers in touch with the goals and deadline (Schamel, 2003). In

doing so, managers are given a certain direction to look upon for desirable results.

For the purpose of this report, this section has been divided into two segments that

will outline the scope of work in terms of interior design components and building

works.

4.1. Interior Design ComponentsThe proposed site’s current layout is that of the Jewellery Store, Germani. The

existing design of the facility with hints of

white, grey and cream give it a very classic

but dull 20th Century look. As the facility

managers, we have decided to incorporate

Hilton’s aforementioned mission statement of

being the “Leaders in Innovation” and have derived the use of technology in order to

do so. To complement our concept of the new tech concierge System, we have used

an intensive Hollywood Regency styled interior design. This philosophy balances our

technological concept in a way, that sticks out and shouts Hilton, connecting it to the

roots of the brand. The whole idea is to set the vicinity to represent a lounge fused

with an in-house concierge. The functionality of the holographic table design is

increased by placing it inside the “Visual Box”. The inside of the box itself is lined with

insulated wall panels. The lighting inside the box is kept to a minimum so it does not

hinder with the holographic table. A concealed stirp of LED lights will be attached to

the bottom of the table as shown in figure 1. This gives the table a very futuristic look

by making it appear as if its floating in the air. In terms of the lightings outside, no

changes were made, as the combination of the LED lights in the vicinity and natural

light would help highlight the furniture, and the stunning 3D designed wallpaper used

for the “Visual Box”.

(Figure 1)

The addition of high-tech televisions showcasing art pieces and different other

functions, is yet another example of the balance between innovation and heritage.

4.2. Building WorksThis section refers to the construction bit of the proposal. The construction aspect of

the refurbishment is the closing down the second exit to George Street and replacing

it with a tempered tinted glass wall and; ($1599 for 31x18 ft2) removal and levelling of

the staircase (at the second exit) with the floor, by addition of wooden planks

(supplied by Bunnings Australia at $659 for 187 f2) supported with metal pillars,

drilled a foot beneath the floor (supervised and completed by Hilton’s Maintenance

staff). Doing so would give us additional space and eliminate the staircase no longer

needed due to the elimination of the second exit. The exit door will be demolished

completely and will be replaced with a durable tempered security glass panel. The

tempered glass wall will have a sturdy aluminium frame that helps with waterproofing

and sound proofing from the outside as well. To procure full disclosure and privacy of

the guests present inside the lounge, the glass wall will be tinted with an opaque

durable glass sticker.

4.2.1. Proposed Scope of Work ScheduleThis section is outlined in such a sequence that leads to the execution of the

renovation as effectively and efficiently as possible in terms of the interior design

components and building works.

Pre-Refurbishment Phase outline

Site inspection and confirmation of the proposed design

Designing budget cost schedule for the concept

Finalisation of concept design, materials, suppliers for FF&E

Collaborating and signing an agreement contract with Bunnings for

construction methods regarding extension of floor and installation of the

wooden floor panels

Finalisation of the FF&E, conformation of all quotations (extension) and

ordering the finalised items

Compiling work plan, obtaining construction permits and building regulatory

compliances

Operational Health & Safety requirements alongside adequate steps taken for

risk management

Deconstruction Phase outline

Removal of the entire current FF&E

Removal of existing carpet, including picking off the glue and thorough

cleaning of the surface upon carpet elimination

Uninstalling the second exit to George Street

Stripping the “Visual Box” off of its existing wallpaper

Knocking down all “GERMANI” logos off the walls and pillars.

Construction Phase Outline

Bunnings Australia can recommend and partner with labour suppliers they trust,

along with the hotel’s Maintenance staff in order to offer effectiveness and efficiency.

Installation of wiring and various electricity outlets throughout the vicinity

Installation and tinting of tempered glass wall with extension of the floor and

demolition of the existing hollow wood staircase

Installation of new wooden floor panels, 3D wallpaper on the “Visual Box” and

covering the top of the box (Bunnings Australia)

Revamping of the existing room wallpaper upon finishing the final

construction stages

Post-Construction Phase

Delivery and organisation of the new FF&E

Installation of the Euclideon Table, sound proof layering inside the “Visual

Box” and fitting of dim-lit LED lighting inside the box

Final inspections for functionality of FF&E with thorough cleaning throughout

5. Project Management TimelineA project management plan/timeline can be used as a precise guide for the team that

puts emphasis on the refurbishment process guidelines and can help guide the

team’s path to the desired success (Egbu, 1999).

5.1. Proposal Refurbishment TimelineAs you can see from the figure below, the refurbishment plan commence before

Winter on the 1st of May 2018 and is estimated to finish at the start of Spring,

approximately the first week of October, 2018. This includes approximately 3 months

for the pre-refurbishment stage, 3 for the refurbishment stage (including the

construction) and lastly approximately a month and a half for finalising the

refurbishment.

5.2. Closing and Opening DatesThe refurbishment of Germani Jewellers to Hilton Sydney’s concierge lounge will set

back the hotel for a good 6-month time period, during which several measures will be

made by the hotel staff. Guests will already be informed about the construction phase

upon check-ins or even newsletters sent by the hotel to their subscribers. The brand

new, one of its kind high tech concierge will set to be open late October this year

(2018).

6. Human ResourceHuman Resources is another major factor that will determine the success of the

concierge lounge. The refurbishment will give more depth to the jobs of in-house

staff; however, they will need to be retrained to utilize the table’s full potential.

6.1. Kathy KuoThe supplier for the interior design’s FFE is crucial as the chosen company will reflect

and add their own personalized touches. Kathy Kuo was chosen for most of the

furniture, as she reflected the Hollywood Regency style that the concierge lounge

aims to achieve, Kathy Kuo Furniture is relatively new in the furniture industry who

has distinctive furniture offerings. Kathy Kuo offered a brand that filled the gap of

middle- upscale furniture as well as custom-made furniture to suit customer

requirements. It is also made from some of the best material which ensures the

quality is better than its counterparts (Rue Daily, 2016)

The biggest competitive advantage that Kathy Kuo’s brand has over its similar online

counterparts, is Kathy Kuo’s online presence, in terms of customer service feedback,

through social media and mailing systems, Kathy’s service team is remarkable at

solving problems and taking appropriate measures. It shows that they have had clear

training in conflict management and problem resolution.

Kathy Kuo, herself is also a social media influencer. She has over 100,000 followers

on her Instagram, which she uses to showcase her new furniture pieces. Hence the

promotion and publicity are usually done by her as an influencer which can attract

their target market such as Hilton’s new Concierge lounge. The above points show

Kathy Kuo develop into a trustworthy and new emerging brand that Hilton could

support.

6.2. Co-operation of internal and external staffBunnings has been chosen for the wooden floor installations, it is to be noted that

they offer installation with the price package, hence HR is only involved with possibly

supplying security during the installation process. The maintenance team of Hilton

will also need to be involved to utilize the steel beams as shown in the scope of work

and use the steel beams to stabilize and raise the flooring.

Promes (2015) highlights that in-house staff are the backbone of the organization

and are inexplicably linked with the success of the hotel. The information about the

refurbishment also needs to be communicated throughout the organization in the

form of emails or notice boards (Dostie, B. 2018). So that the employees know where

to direct people and the purpose of this refurbishment.

The concierge will need to be retrained to operate the Euclideon table as members of

the concierge team will use their concierge skills. As the timeline suggests during the

installation and programming of the Euclideon table, the IT team will need to be

trained by the programmers on basic operations as well as the concierge staff on

how to operate the table.

Due to the Euclideon table being versatile, the holograms of respective locations can

zoom in and out from one blade of grass to an overview of a city. The concierge will

need to be effective in promoting and utilizing this technology to its full potential and

routine this to achieve the mission and vision statement (Euclideon Holographic,

2018).

7. Legal and Regulatory

7.1. Compliance

Compliances that would need to be followed for the refurbishment:

• 2015 version of the Building Code of Australia (ABCB, 2018).

• The Environment Regulations 2005 (Legislature of NSW, 2018).

• Occupational Health and Safety Regulations (Safework NSW, 2018).

• Protection of the Environment Operations (Noise Control) Regulation

2008 (NSW Legislation (Noise Control, 2008).

All construction would follow the building code of Australia to comply with all

the legal and regulatory requirements. In order adhere with Hilton’s vision of

sustainability, construction will use the least amount of non-sustainable

material and construction will cause minimal environmental impact. This will

also follow the rules set by Hilton’s corporate social responsibility. (Hilton

Sydney, 2018). Safety will be enforced by management and follow the

Occupational Health and Safety Regulations. All workers will be required to

wear protective equipment at all times during construction. Due to noise

pollution, construction would only occur between 7am and 8pm.

7.2. Australia Building CodesCode DescriptionAS 1428 Designed for access and mobility. Doors are wide enough that it

complies with the disability accessibility. The room and furniture is designed and arranged spacious enough so that a wheelchair can move around easily.

AS 1288 The glass wall that leads to George Street will be replaced with a tinted glass to provide privacy. The glass used would be durable enough to withstand the elements and pressure. The type of glass used will be one that will not cause major injury to any passer-by should it break.

AS 1657 As we will be covering up and levelling the stairs that lead to George Street, we will be constructing supports for the flooring. Standards will be held to take sure that the floor could withstand the pressure of the furniture that will be placed on it and also the weight of the people.

AS/NZS 1680 As the box used to house the Euclideon Holographics Table would be dark so that it could project light properly, lighting will be installed under the table so that it people would still have visibility to move around the room.

AS/NZS 3010 The contracted electricians will be verified of their licence to ensure that all the electronic devices and wiring is installed properly.

8. Risk Management Risk Description MitigationNoise Pollution (During extension of floor)

Loud noise due to construction will cause disturbance to guest and surrounding businesses

Inform all guest and surrounding businesses prior to their reservation that a refurbishment will occur where there might be noise

Only work during the allowable time according to the Noise Control regulation

The building has been constructed taking noise insulation into consideration and implementing this in walls.

Fire Hazard In case of a fire caused due to the refurbishment or operations

The room will be equipped with fire extinguishers and sprinklers.

All staff will be trained on how to prevent fires and how to handle them (Rubio-Romero, Máarquez-

Sierra, & Suárez-Cebador, 2016).

Budget Going overbudget might cause a loss from what was originally projected

Budget set will be adjusted so that it is realistic and not an underestimated amount.

Budget will be set in mind with how much ROI (Return on Investment) Hilton will receive from Guest engagement and loyalty

Security Hotel security is essential to reassure the guest and employees that they are safe (Rushmore & Malone, 2005)

The security team will patrol the hotel and check up on the hotel’s facilities

Theft With ipads being available in the room, there is a chance of it being stolen

A retractable cable will be attached to the ipads to avoid theft (Scope of work)

City of Sydney Council Council enforces laws and regulations

All precautions will be taken to ensure that the law is abided to and that it follows all the regulations

Project deadline The project has a timeline that if delayed would affect not only the planning but also the budget

Managers will closely monitor construction so that everything goes to plan and is finished on time

Damage to current infrastructure

As major construction will occur on the glass wall and the box the is a chance that the current facility might be damaged

All contractors will take all the precautions needed to ensure a safe working environment and protection will be placed over the infrastructure to

avoid any damages.

The Occupational Health and Safety is essential during and after the

construction of this facility. Firstly, a set of Occupational Health and Safety

procedures will be set to ensure that everyone knows what is to be expected.

(Mearns & Ivar Håvold, 2003). All employees will familiarise themselves with

the procedures followed by training. Training will include how to safely operate

their job and training on how to operate the Euclideon table. Protection as

glasses for the Euclideon table will be provided. Employees will also be

trained to make an incident report should something happen. (Bhattacharya,

2011). Training will be conducted by the supervisors and management team.

Managers will do a routine inspection to ensure that all procedures are

followed and to make a report to track the health & safety performance.

9. ConclusionThroughout this business proposal, we have discussed why Hilton’s success

as a brand and their positioning is perfect for the refurbishment of ideal vicinity

in the lobby that is currently occupied by the Germani Jewellery store. We

have deliberated that going in line with Hilton’s direction of enhancing guest

engagement and loyalty, the room will be turned into a concierge lounge. This

will be done so by the refurbishment process that has been discussed in the

proposal. In light of the discussions in the marketing and branding, it could be

said that the new implementation of technology could give Hilton a

competitive edge during segmentation of its target market. The design of the

Hilton Sydney was made so that people could go through the lobby from

George Street to Pitt Street. This project will attract new customers as it would

pique their interest when passing through the lobby. The Euclideon table is a

new and interesting technology which could be used as a conversation starter

by employees and it would certainly spread by word of mouth once guest

have seen it. The report has critically looked at the scope of work, a

Hollywood regency style of interior design, the legal and regulatory

compliances which showcased the prospective from start to finish, all the

parties that would be involved and the risk that is to be expected with this

refurbishment.