Hotel Capacity in İzmir Increases from 47 Rooms to 186: What Changes When Capacity Quadruples in the Same Building?
Hospitality and HORECA

Hotel Capacity in İzmir Increases from 47 Rooms to 186: What Changes When Capacity Quadruples in the Same Building?

S
StaffMag
September 02, 20268 min0

The existing 47-room accommodation facility in Bornova, İzmir, is planned to be expanded to 186 rooms and 372 beds through interior arrangements without constructing a new building. The project, with an estimated investment of approximately 61.5 million TL, includes converting meeting and conference areas into rooms and dividing some existing rooms. The increase in capacity could raise the revenue potential per square meter for investors; however, the management of a facility with 372 beds in terms of staff, water, wastewater, housekeeping, breakfast, and common area capacity must differ from that of a 47-room hotel.

Hotel Capacity in İzmir Increases from 47 Rooms to 186: What Changes When Capacity Quadruples in the Same Building?

A 47-room accommodation facility operating in Bornova, İzmir, is planned to be transformed into a 186-room city hotel without expanding the building's outer shell.

According to information from the project file, the facility will reach a capacity of 372 beds, with an investment cost of 61 million 480 thousand 450 TL. The increase in room numbers is planned to be achieved not by adding a new hotel block but by converting existing conference and meeting rooms into accommodation rooms and reducing some existing rooms by dividing them.

At first glance, this is news of a renovation and capacity increase.

However, it raises a more challenging question from an operational perspective:

What happens when the number of rooms in a hotel is increased by nearly four times, but the rest of the building's operations do not grow at the same scale?

The number of rooms will increase by approximately 296 percent

Increasing the existing 47 rooms to 186 means 139 new rooms.

In other words, room capacity increases by approximately 296 percent, reaching nearly four times the previous level.

However, a hotel’s capacity does not consist solely of rooms with doors and beds.

Each new room;

housekeeping,

laundry,

hot water,

electricity,

breakfast,

reception,

luggage,

elevator,

waste,

fire safety,

maintenance

and staff usage also increase.

Therefore, the feasibility of investments in renovations that increase room density cannot be assessed solely by the calculation of "how many new rooms can be sold?"

In addition to new room revenue, it must also be evaluated whether the building's common infrastructure can handle the new load.

Giving up conference rooms changes the revenue model

The project plans to convert conference and meeting rooms into rooms with beds.

This decision directly alters the hotel's revenue mix.

If a meeting room is not regularly used, converting the space into a room can generate higher and more consistent revenue.

However, completely eliminating meeting space in a city region like Bornova, which has university, health, industrial, and corporate mobility, may limit other revenue opportunities.

Therefore, the hotel must account not only for new room revenue but also for lost;

meeting room rentals,

corporate events,

coffee breaks,

lunch-dinner,

organization

revenue.

True feasibility requires a comparison of the additional RevPAR generated by the new rooms with the MICE and F&B revenue that is forfeited.

Smaller rooms can create a different product

Reducing the square footage of some rooms by dividing them is also one of the project's notable aspects.

The compact room model can work economically in city hotels.

Especially for guests who stay briefly, spend most of the day outside, and prioritize a central location in exchange for price advantages, smaller rooms may be accepted.

However, as the room size decreases, the quality of design becomes more critical.

Circulation around the bed.

Luggage space.

Work surface.

Bathroom ergonomics.

Closet capacity.

Sound insulation.

Housekeeping access.

A few square meters lost due to poor design can turn the increase in room numbers on paper into operational and guest satisfaction issues.

Therefore, the success of the "more rooms in the same area" strategy is tested more in usability than in the number of rooms.

Environmental assessment requires separate evaluation for new capacity

There is an important detail in the project's environmental assessment dimension.

According to the Ministry of Environment, Urbanization, and Climate Change's current sectoral guide regarding tourism accommodation facilities, tourism accommodation facilities with 200 beds or more fall under the scope of the Environmental Impact Assessment Regulation Annex-2. Since the planned capacity of the project is 372 beds, it is expected that the new capacity will be subject to the environmental assessment process.

Indeed, the news mentions that a Project Introduction File has been prepared for the capacity increase.

Some publications criticized that the facility previously received an exemption from the EIA scope based on 47 rooms and that the capacity was later increased. However, the existing public information alone is not sufficient to conclude that the legislation is being consciously circumvented.

A healthier assessment will involve monitoring how the current 372-bed project is concluded by the Ministry under what decisions and conditions.

When capacity grows, the environmental burden is not limited to the number of rooms

According to the information conveyed from the project file, the facility is expected to reach a daily user load of 472 people, with 372 guests and approximately 100 staff at full capacity. The same source document states that daily water consumption is approximately 109 cubic meters and 99.12 cubic meters of domestic wastewater is generated.

These figures are not direct independent measurements but projections in the project file.

However, they show why capacity increase is not solely about room planning.

Water tank.

Hot water production.

Wastewater line.

Elevator.

Ventilation.

Waste storage.

Staff areas.

Fire evacuation.

Each of these needs to be re-evaluated according to the 186-room scenario.

186 rooms cannot be operated with the staff of 47 rooms

Staff planning will also be one of the unseen costs of the investment.

More rooms mean directly more housekeeping work.

For instance, even if it is assumed that the cleaning time per room is only 25–30 minutes, hundreds of hours of total workload can accumulate on high turnover days.

The reception's check-in/check-out volume will increase.

The preventive maintenance list for technical service will grow.

The breakfast operation will have to accommodate a higher number of simultaneous guests.

The need for security and operations during the night shift may change.

Therefore, the renovation budget must include not only furniture, equipment, and physical transformation but also new organizational structure and payroll budget.

The breakfast area could be a critical bottleneck

One of the areas that can often be overlooked when increasing the number of rooms in city hotels is breakfast.

If the restaurant area of a 47-room hotel remains the same for 186 rooms, the turnover of tables during the morning rush can significantly increase.

When the 372 beds are fully occupied, considering that a significant portion of guests will come to breakfast at similar times;

seating capacity,

buffet length,

coffee machine capacity,

dishes turnover,

kitchen production

and service staff

must be recalculated.

Otherwise, the revenue generated from the new rooms may lead to a loss of quality in one of the most visible points of the guest experience.

How to interpret the investment cost of 61.5 million TL?

The investment amount stated as 61 million 480 thousand 450 TL is related to the project cost for restoration and capacity increase rather than the construction of a new building.

If we simply divide this figure by 139 additional rooms, we get a theoretical value of approximately 442 thousand TL/additional room.

However, this calculation cannot be used as the real "key cost".

Because the budget's;

mechanical-electrical infrastructure,

furniture,

common area,

fire system,

kitchen,

technical equipment,

projecting

and other renovation items are not detailed in public sources.

Similarly, the financing structure of the investment and the planned ADR, occupancy, RevPAR, or payback period after opening have not been disclosed.

Therefore, it would not be correct to use the figure of 61.5 million TL as a sole criterion for determining whether the investment is cheap or expensive.

Who the product will be sold to is decisive for Bornova

Bornova is a different accommodation market than a classic holiday hotel destination.

University.

Hospital.

Industry and commerce.

Corporate visits.

Intra-city connections.

These demand sources can support a city hotel product that is short-stay, price-sensitive, and values transportation access.

However, increasing from 47 rooms to 186 also significantly raises the annual room night quantity that the business must sell.

Therefore, the success of the investment will depend not only on the physical completion of the hotel but also on;

corporate agreements,

OTA performance,

direct sales,

group demand,

pricing

and low season strategy.

In our opinion, the most interesting aspect of the Bornova project is not the acquisition of 139 new rooms but the radical attempt to increase room productivity within the same structure.

This model can be efficient from a real estate perspective.

No new land is being purchased.

No new building shell is being constructed.

The existing space is producing more sellable rooms.

However, in hotel management, square meter efficiency and operational efficiency are not the same thing.

It is possible to fit all 186 rooms into the plan; the real issue is establishing a system where hundreds of guests can check in simultaneously, have breakfast, use hot water, take the elevator, and access their clean room on time.

Therefore, the success of the investment should be measured not by the question "how many rooms were added?" but rather by:

Will the additional revenue generated per room be able to cover the additional staff, infrastructure, and service costs brought by the capacity increase?

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