Mixed-use developments will be the dominant model for hotel building in the coming years, according to a new report.
Three quarters of hospitality executives surveyed by hospitality consultancy TRI agreed that developments incorporating offices, retail units and residences were likely to be the future of hotel development.
Despite this trend, the majority of respondents (90%) indicated that preference would still be given to buying existing properties rather than building new ones.
“There is a clear preference for acquiring existing stock where possible,” said Jonathan Langston, managing director of TRI Hospitality Consulting.
The survey also highlighted the negative attitude towards buy-to-let hotel rooms, with nearly 60% of those surveyed against the idea or unsure of the scheme’s merits.
Langston agreed that buy-to-let rooms were a concern within the industry, but pointed out that acceptance of the practice would be a gradual process.
“Buy-to-let hotel rooms are a very recent innovation. They will need to be proved through at least one business cycle before the approach is welcomed in all quarters,” he said.
By Jen Crothers
Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.
Sudoku
Join the craze and play Sudoku online! |