The Global Consultant is Hotel Management’s contributed column featuring insights from members of the International Society of Hospitality Consultants (ISHC). Each installment explores the trends, challenges and opportunities shaping the hospitality industry.
The hotel landscape is changing. While new construction remains a cornerstone of growth strategies, a growing number of operators are discovering that older buildings can outperform their newly built counterparts—both financially and experientially. Adaptive reuse is no longer a niche alternative; it's becoming a competitive advantage.
The economics are compelling. Rising construction costs, lengthy entitlement processes, and extended timelines to market have shifted the calculus for developers and operators alike. But beyond the spreadsheet advantages, historic properties offer something that modern construction rarely delivers: Guest loyalty rooted in authenticity and place.
The Guest Experience Advantage
Today's travelers don't want cookie-cutter rooms. They want stories. A vintage hotel with original architectural details, exposed brick, and restored period finishes creates an emotional connection that sleek new construction struggles to replicate. These spaces feel rooted in reality rather than designed by committee.
Consider the competitive angle: While a new build offers uniform floor plans and predictable layouts, an adaptive reuse property offers character. The irregularities and unexpected spatial conditions that might have seemed problematic during design become the very features guests photograph and post on social media. Operators who lean into this narrative create properties that command premium rates and inspire repeat visits.
Operational Realities: Constraints as Opportunities
Let's be direct: Adaptive reuse projects come with real challenges. Non-standard floor plates, ceiling height limitations, irregular column placement and complex circulation patterns require creative problem-solving from architects and designers. Historical designations can restrict what modifications are permitted.
But here's the operational insight: These constraints often yield better long-term results. A property forced to think creatively about room layouts, lighting, and spatial flow often ends up with more memorable spaces. What appears as a limitation in the planning stages frequently becomes a distinctive feature during operations. Hotels with unique room configurations, specialty suites adapted from historical spaces, and character-driven public spaces develop passionate guest followings.
The Sustainability Narrative That Drives Value
Sustainability increasingly influences guest choice and corporate partnerships. Adaptive reuse delivers measurable environmental benefits: preserving embodied carbon in existing structures, eliminating demolition waste, and reducing overall material consumption. But beyond the environmental metrics, there's a cultural sustainability argument that resonates with modern travelers and community stakeholders.
Buildings that retain historical character stay valued and occupied longer. A property with genuine roots in its community attracts not just tourists passing through, but travelers seeking authentic local experiences. This translates directly to stronger demand and occupancy rates.
Revitalization as a Business Strategy
Some of the most successful hotel adaptive reuse projects have catalyzed neighborhood transformation. In Detroit, a historic firehouse was reimagined with thoughtful design that honors its legacy to create the Detroit Foundation Hotel. In La Crosse, Wis., a candy factory has become the Charmant hotel, a destination drawing visitors to its riverside location. In Kansas City, Mo., a former members only social club was converted to the Hotel Kansas City where its gothic detailing and vintage charm were preserved.
These aren't peripheral projects—they're community anchors that attract additional investment, draw new visitors, and strengthen a destination's identity. For operators, this means first-mover advantage in emerging neighborhoods and stronger community partnerships that support long-term occupancy.
Design Decisions That Maximize Value
The difference between a failed adaptive reuse and a thriving one often comes down to strategic choices about what to preserve, what to evolve, and what to reimagine entirely. Successful operators work with designers who understand the building's "architectural DNA"—its structural grid, ceiling heights, window patterns, and natural circulation flow. Rather than fighting these elements, designs should amplify them.
This means celebrating original materials. Expose the brick. Highlight restored masonry. Integrate industrial details alongside contemporary elements. Create contrast that tells the building's story while delivering modern comfort and service. Guestrooms that showcase original architectural features command higher rates than generic spaces.
The Bottom Line for Operators
Adaptive reuse projects require patience, creative problem-solving, and capital. But the payoff extends beyond construction savings to revenue potential and brand differentiation. In a market saturated with similar new builds, historic properties with distinctive character create sustainable competitive advantages.
The next generation of hospitality growth won't be defined solely by new construction. Forward-thinking operators who see older buildings not as legacy problems but as untapped potential—stories waiting to be told and experiences waiting to be curated—will build the most profitable and beloved properties.
Constraints aren't obstacles. They're the raw material for innovation. The question isn't whether your market has old buildings. It's whether you have the vision to unlock their potential.
Adam Lara, a licensed architect and LEED accredited professional, is a principal at KTGY.