Coworking to keep hotels steady during slow real estate market
While global hotel transaction volumes totaled almost $68 billion in 2018, the global real estate markets are anticipated to slow down this year. JLL’s 2019 Hotel Investment Outlook report showed that hotels that focus on experiential travel and coworking spaces should still do well.
Hotel markets are seeing an uptick in demand for high-end experiential travel. Guests have expressed wanting to immerse themselves in the culture, so many hotels are partnering with surrounding communities to offer onsite classes and events.
Additionally, there has been increased demand for communal workspaces within hotels. These spaces would allow guests to work and socialize, while boosting revenue and utilizing unused space in hotels.
The Latest News
Delivered To Your Inbox
“Consumers are always seeking a work/life balance. One of the trends JLL foresees is people staying in hotels where they can also work,” said Davis. “Operators are now transforming parts of their large atriums and lobbies plus unused rooms into revenue generating spaces.”
For example, the Virgin hotel in Chicago offers a membership fee for its coworking space that includes a bar, private meeting rooms, a library, Wi-Fi, and other traditional amenities found in many flexible office spaces.
Latest on Daily Digest