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The Advantages of Mixed-Use Hotel Development

If you’re a hotelier looking for a new location with a promising return on investment, a mixed-use development could be the best option.
Mixed-use development generally includes at least three uses in one development, including residential, office, event space, restaurants and/or hotel rooms. The benefits to this type of development include an increase in usage, more tax incentives, and design flexibility.
The concept of mixed-use development is not new.
Starting in the mid-2000s throughout the country, mixed-use became a buzzword in development. The projects provided solutions to urban areas looking to maximize on limited land space, revitalization efforts, and the desire for large-scale developments.
Now mixed-use has evolved beyond just combining building uses to create a sense of community and space. The mixed-use developments of today often include outdoor spaces for things like farmers markets and concerts.
Hotels are a viable anchor for these types of projects. For investors, the security of a hotel being included in a mixed-use development not only limits risks but also increases the price of adjoining private residential significantly.
In the last few years, mixed-use hotel development has moved beyond the luxury market and downtown core to include emerging markets and more select-service hotels.
Other advantages of mixed-use development for hotels include:

Support from Municipalities

Increasingly, cities and counties across the U.S. have updated their comprehensive plans, making mixed-use development easier in their communities and in some cases offered incentives for it. The Sarasota 2050 Plan is a perfect example. The initiative provided incentives for landowners east of Interstate 75 who opted for developments that prompted more “village” like developments combining many uses and preserving open spaces. El Paso Texas, Miami-Dade and Orange County have initiated similar plans.

Community Shaping

When guests check into a hotel property, they’re not likely to just stay in their room. By creating a seamless transition from hotel room to coffee shop and shared gym space in a mixed-use development, guests get the sense they are in a community - not just a hotel. Attention to brand details through design, customer service and decor provide a comforting consistency to guests, residents, and shoppers.

Reducing Carbon Footprint

Mixed-use development can provide benefits from an environmental standpoint. With restaurant or entertainment options within close proximity, hotel guests don’t have to depend on transportation as much. And since many mixed-use developments utilize existing buildings or under-utilized areas they reduce the need to take up more green space resulting in a much smaller carbon footprint than stand-alone projects.

View our Hotel Management Company's development portfolio to see how we can be of assistance for your next project.