Expect less new construction and more renovation, repositioning and conversion projects. Due to new work patterns and less conventional demand for office tenants, many cities have a huge surplus of well-located Class B and Class C space ready for conversion, either under owned existing, or after changing hands to informed investors.
This aligns with the now non-negotiable emphasis on ESG – we should never again tear down an existing structure unless it is truly unavoidable. The greenest building is the one that already exists.
In the same way that we see hybrid work, we see more hybrid hospitality projects that mix hotels with serviced apartments and co-living. This reflects the growing trend for travelers to take fewer but longer trips combining business and leisure – what we now call “bleisure”.
We are also seeing a much greater focus on the premium offering. Post-pandemic, attitudes towards travel have changed, with many choosing to enhance their experience.
Successful lifestyle hotels now generate 50% of their revenue from food and beverage, meaning they can be a catalyst for hotel recovery and should be factored into the mix to future success.
Technology will also play a role. This doesn’t mean I, robot-style AI staff, but more invisible and transparent technology designed to improve the customer experience by freeing up staff to provide more personal and improved service, informed and organized by data capture sophisticated and customer profiling.
The conclusion? Reinvent and adapt what we have to deliver authentic, premium guest-centric experiences and destinations with environmental and ethical awareness. This is the recipe for long-term success.
Todd Lundgren, Director, CRTKL