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Strategies for Applying Modular Construction to a Concept Hotel

*Below is a brief summary of our research conducted on this subject. If you would like the full package, please feel free to reach out to us at

As we evaluate the current hotel industry, what are the benefits to applying modular construction to the development of new hotel concepts?

The Hotel Industry as We Know it​

Due to rapid changes of our social environment, the contemporary customer’s needs and activities are elusive and fleeting. The development of the current hotels has shown similar trends. A new generation of hotels should be able to move away from merely reacting to the various changes in the society.

The lack of diverse hotel concepts has polarized the hotel industry in Korea.  It is top-heavy with luxury hotels that provide full services, but also inundated with low-tier motels. The mid-scale hotel segment is suffering from the absence of innovative business strategies, proper marketing, and quality service, which has failed to appeal to land owners and developers. Only the mid-scale hotels associated with upscale brands are growing in the industry. 

The necessity of a new hotel type is imminent. It should be able to provide consistent services and demonstrate creative marketing based on flexibility and scalability.


"Modern methods of construction" is a collective term used to describe both a number off-site and on-site technologies. 

  • Typical modular. Three-dimensional units produced in a factory that are fully fitted out before being transported to the site and stacked onto prepared foundations to form the dwellings.

  • Panelized. Flat panel units produced in a factory and transported to site for assembly into a three-dimensional structure or to fit within an existing structure

  • Typical and partial modular. Volumetric units integrated with panelized systems

  • Sub-assemblies and components. Larger components tare incorporated into either conventionally built or MMC dwellings

  • Non off-site manufactured modern methods of construction. Innovative methods of construction used on-site and the use of conventional components in an innovative way

Case Studies

We looked at a series of modular hotel concepts around the world to better understand the full hotel experiences that they provide along with the trade-offs from applying modular construction. Most developers experienced cost and time savings, but some also noted that they had to invest more initially than in a conventionally constructed project due to lack of information and experience. Ultimately careful planning in scheduling and processes are integral to seeing the benefits from modular methods in the hospitality industry. 

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