PERSPECTIVE
THE RISE OF MIXED-USE LUXURY DEVELOPMENTS One of the biggest trends defining luxury hospitality right now is the shift toward mixed-use lifestyle developments , which integrate high-end condominiums into hotel properties . The trend is taking off particularly in urban areas , where skyrocketing costs of prime real estate demand strategic solutions . Blending condominiums with traditional hotel models , these mixed-use developments can help developers more quickly recoup a significant portion of their investments on an expensive property to reduce ongoing debt and enhance the potential for a substantial exit return .
Resort destinations , such as Orlando , Hawaii and parts of the Caribbean , are beginning to offer this kind of unit mix — from standard hotel rooms to multi-bedroom timeshare suites and condominiums — that can be rented out when not in use . Prime markets , such as Boston , may not be a first choice for five-star hoteliers looking for a new location , but adding in a mixed-use approach opens the potential to capture a larger share of end users , including both guests and residents . This approach optimizes land use in premium locations and creates diverse revenue streams through multiple product types .
ADAPTING TO THE DEMANDS OF AFFLUENT TRAVELERS Experiences are driving the latest expansion of high-end resort destinations . Affluent travelers are seeking more than accommodations ; they want singular , culturally rich experiences that are unique and memorable : rooftop martini lounges using locally sourced spirits , private pools with sweeping skyline views or resplendent club rooms offering exclusive restaurants , cooking classes and other special perks .
To achieve this , many successful hoteliers and developers are partnering with creative entrepreneurs to act as concierges offering one-of-a-kind experiences , rather than standardizing them under a single brand . In turn , these unique amenities can generate momentum on development and attract new buyers to fresh , exciting experiences within a hospitality property . Not only does this approach enrich the guest and resident experience , but it adds to the brand ’ s uniqueness and localization , as well as to the overall appeal of the property .
UNDERSTANDING THE CHALLENGES OF MIXED-USE DEVELOPMENT Mixed-use development can be tricky , especially when it comes to balancing the needs of condominium owners and hotel guests with the scale of the property . Oftentimes , the project scale on mixed-use developments can require the creation of separate infrastructure systems and amenities , such as different elevators and loading docks , that can be complicated and pricey . While shared amenities like spas are common , exclusive facilities like private lounges or pools are also necessary to cater to a high-end clientele . This separation is crucial to meeting the expectations of both condominium owners and hotel guests at once . The key : Understanding and responding to the specific demands and expectations of guests and residents , while effectively managing the shared resources .
AT YOUR SERVICE : TECHNOLOGY AND PERSONALIZED AMENITIES In 2024 , luxury properties no longer have the option to not make investments in technology a priority . After all , the point of differentiation in high-end hospitality is typically defined by the level of service and the integration of technology . This includes considering personalized services like 24-hour butlers for guests and unique amenities for residents that go beyond the norm . Contactless or self-check-in and check-out are now expected . This creates a more efficient operational experience for hotel guests and workers alike . Not only do these technologies enhance the guest experience , but they also distinguish the development from conventional hotels or condominiums , so long as there is an adequate staff-to-guest ratio and seamless technology to help with responsiveness . At the end of the day , hospitality is all about the human experience . When it comes to technology integration in hospitality properties , the biggest challenge is managing how to leverage technological solutions and create pathways to profitability while still giving guests and residents the human interactions that define the sector .
FUTURE OUTLOOK : OPPORTUNITIES AND INNOVATION Looking to the future , developers may shift their efforts toward exploring new markets and repurposing existing assets into mixeduse spaces , which offer potentially higher returns than new ground up construction . These developments will be driven by unique , memorable experiences facilitated by partnerships with creative entrepreneurs that can help build a brand that expands their brand standard in luxury travel and living .
The hospitality industry is at an exciting crossroads , where luxury meets innovation , and profitability aligns with exclusive experiential access . As the sector continues to evolve , we will undoubtably see the standards of luxury travel and living redefined for a new generation .
58 hotelsmag . com Mar / Apr 2024