A COSTLY BUSINESS

by MONITOR
WHY is it that no major project these days gets completed on time and within the cost estimate? Is it because when those two criteria are satisfied there's nothing for the media to write about and consequently it's only the horror stories that get attention? Even so, this week's news that the refurbishment of the Savoy Hotel in London is running almost a year behind schedule and that the cost has doubled does seem to point to a rather newsworthy situation. The hotel was closed in December 2007 for what was estimated to be a 16-month make-over with a cost of “100 million pounds-plus”. It was wise to add the “plus” warning but it surely could not have been intended to indicate a doubling-up. A company engaged in the work has said that the delays and cost increases are because of the buildings “atrocious state” following patching up improvements throughout more than one hundred years. Did no one know it was in that state before work began? September is now the date by which the Savoy expects to be able to take bookings for its 268 guest rooms which will cost from 350 pounds a night. The Royal Suite, which commands spectacular views of the River Thames from the fifth floor will set back its occupant 7'500 pounds a night -- not for British Royalty probably.