Mixed-use hospitality development has significantly evolved over the past decades, becoming increasingly essential in the current market as securing financing has become more challenging and diversifying a project makes it more economically viable.
Furthermore, the very nature of mixed-use developments means there’s a symbiotic relationship between the different elements of the asset as the variety in amenities means that visitors stay longer and therefore spend more money, benefiting the bottom line. But how should investors and developers navigate this goldmine to ensure bumper returns on investment?
Location, Location, Location
The first important consideration is location, experts say, spotlighting opportunities in gateway cities across the U.S. and globally.
Shafi Syed, global head, hotel developments and acquisitions at Equinox Hotels notes “Our markets are similar to what some of the top luxury brands are looking for and where they want to grow – so about 30 to 40 gateway cities globally and resort markets.”