The Rise of Modular Design in Hotel Construction—and the Factors That Make It Work

aloft hotel building exterior

Modular construction is becoming more common in hospitality projects across the country. For developers building in high-demand markets like Nashville, modular construction can offer significant advantages. At Crain Construction, we’ve been incorporating modular principles into our work for years. As the hospitality market continues to evolve, we’re seeing modular approaches play an even bigger role.

From our perspective, the idea of fully modular hotel projects isn’t brand new. Before 2020, entire guestrooms were built off-site and then shipped to the site for a “stacking event.” Crews then assembled the structure on-site, fitting the modules together like life-sized LEGO bricks. The COVID-19 pandemic initially disrupted the momentum of modular construction by forcing manufacturing facilities to temporarily close. However, in recent years, the industry has started to recover, and interest in modular methods has increased.

We believe in getting involved early in a project to help our clients make the smartest decisions for their long-term investment. Modular construction offers clear benefits, but it also comes with unique considerations. Here are a few insights to help you decide if modular construction is right for your next hospitality project:

The Big Payoffs: Benefits of Modular Construction in Hotels

  • Shorter Schedules

One of the biggest benefits of modular construction is time. When work can happen off-site while other crews are working on-site, it helps speed up the overall project timeline. That means owners can open their hotels faster and begin generating revenue sooner.

Project Example: For the TownePlace Suites on Charlotte, we panelized the structural stud walls. Instead of framing walls one stud at a time on-site, we installed full sections of walls that had been built off-site. This parallel process helped keep the project moving quickly and efficiently.

  • Fewer Weather Delays

In Middle Tennessee, the weather can be unpredictable. Rain or winter storms can slow down work on site. But modular components are built in climate-controlled warehouses, meaning progress isn’t affected by bad weather.

Project Example: At the BNA Hilton, we used a modular approach for the exterior facade. The glazing systems were installed directly at the architectural precast manufacturer, resulting in a high-quality product and a significant win for the schedule.

  • Cost Predictability

Modular construction can offer more price certainty than traditional methods. With units built off-site, contractors and owners can lock in fixed pricing earlier in the process. Tariffs and market changes continue to affect supply chains. In this environment, modular construction offers a more stable budgeting path for certain parts of the project.

Project Example: For the Element Hotel, we used prefabricated wood framing for the five-story structure above a concrete podium. By purchasing the wood early, we were able to avoid price hikes and save the client thousands of dollars.

  • Consistency and Quality Control

Because modular components are built in a controlled environment, they often meet higher and more consistent standards than those built on-site. For hospitality projects, that consistency can have a big impact on brand experience.

Project Example: For one of our upcoming dual-brand hotel projects, we plan to use modular components for every guestroom bathroom. This approach will ensure uniform quality across hundreds of rooms while helping the project stay on schedule.

Before You Build: Key Questions to Ask About Going Modular

While modular has many benefits, it also requires detailed planning and coordination between architects and contractors. That’s where Crain’s preconstruction team adds value. We work closely with developers and design teams to make sure every detail is accounted for before construction begins. Here are a few key factors to consider:

  • Logistics

Modular components are large. Your site needs to be able to handle deliveries, staging, and hoisting requirements. Urban sites with tight footprints may present challenges that need to be solved during preconstruction.

  • Financial Considerations

Modular elements are manufactured off-site, which means large investments are made before components arrive on location. That can impact construction loans and raise questions about ownership and risk transfer during transportation. These are details that need to be clarified early.

  • Design and Pre-Planning Capabilities

The choice to use modular has to be made early. The building’s design will be shaped by that decision. For example, walls between guestrooms are typically thicker when using modular units versus traditional metal stud assemblies. That affects everything from layouts to square footage to fire ratings.

All of these details must work together. That’s why early collaboration between contractors, architects, and owners is so important. Our preconstruction team can help navigate these decisions and identify the right path forward long before construction starts.

Your Partner in Hospitality Construction and Innovation

We believe modular construction will continue to play a role in hospitality projects across the Southeast. It won’t be the right fit for every project, but when it makes sense, the benefits are real.

We’re here to help developers weigh those options and make informed decisions. Explore our approach to hospitality construction, see examples of our work, or contact us to learn more about how we can support your next project.

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