Managing risk amid uncertainty at Europe’s largest Holiday Inn Express

In partnership with UBM Development Deutschland, we project managed the construction of the largest Holiday Inn Express hotel in Europe. This project supported the city of Düsseldorf — a major European trade fair city hosting over 1.5 million delegates annually — to meet the increasing demand for accommodation.

The Holiday Inn Express Düsseldorf has set a benchmark in sustainable building standards, achieving the prestigious DGNB gold certification. Our proactive engagement in the certification process was pivotal, reflecting our client’s commitment to sustainability.

Overcoming volatility and unpredictability

This project ran from 2018 through 2021. During that time, the project faced significant challenges from the COVID-19 pandemic, including material and labour shortages and rising costs.

But by showing strong leadership, foresight, and effective communication we kept all stakeholders aligned and responsive.

It is also important for a project like this to use adaptive risk management strategies to continuously identify, analyse, and mitigate risks. This was crucial in navigating the uncertainties COVID-19 presented us with; ensuring that we could adjust our plans as new information and conditions emerged and helping us to avoid significant disruptions.

Keeping the project on track

Our proactive approach in identifying and addressing potential disruptions was key to keeping the project on track:

• Creating flexibility: We facilitated a move from general contracting to individual tendering, allowing more flexibility and detailed control over project costs and specifics.
• Cost Management: Our focus on cost targets and tightly monitored costs, especially during the shift from equity to debt funding, improved efficiencies in project handover and financial control.
• Mitigating the risk of labour and supply shortages: We developed and customised tendering processes to mitigate the impacts of labour and material shortages, ensuring competitive bidding even in challenging times.

Project overview

The Holiday Inn Express, part of the Intercontinental Hotel Group (IHG) hotel brand, the offers 455 guest rooms, a breakfast restaurant and diverse meeting spaces. There is also a dual-level underground parking for 122 vehicles. The building covers a total area of 22,000 sqm across six upper and two basement floors. Its modern metal façade and energy-efficient design have helped earn it a DGNB gold certification for sustainability.

Our role:

Our responsibilities spanned all areas of project management and bank reporting, including:

• Budget structuring: Provided clear oversight of expected costs.
• Surveying and monitoring: Ensured that all financial activities were performed ethically, efficiently, and in line with the project’s goals.
• Design and standards consultation: Advised on aligning Intercontinental Hotel Group (IHG) franchise standards with German construction law to ensure consistency and quality of the brand.
• Site management: Focused on sticking to the construction schedule and conducted rigorous technical reviews to pre-empt and resolve potential issues. We analysed, recorded, amended and controlled all activities to ensure that work finished on time.
• Bank reporting: We delivered detailed monthly financial reports and forecasts to investors, maintaining stakeholder confidence throughout the project.

A successful outcome

This project supports Düsseldorf's position as a leading European trade fair destination. It also shows our expertise in managing complex, large-scale hospitality projects under challenging conditions. Our innovative approaches and dedicated project management ensured that UBM Development Deutschland’s project objectives were met on time and on budget.