Design experts at an ALIS Summer Update panel in Dallas emphasized the importance of flexibility, ROI, and budget transparency when it comes to hotel design. Panelists discussed redesigning hotels for flexibility to drive profitability, encouraging designers to explore ideas even if they don’t make financial sense initially, and sharing financials with designers sooner to avoid cost overruns. They also highlighted the need for hotels to adapt spaces to suit different functions, as well as focusing on wellness concepts in future designs.
The panelists agreed that fabulous design is achievable on a budget and flexibility is key in refurbishing and reconfiguring hotel public spaces. They also discussed the current state of the hotel M&A market, with distressed hotels being acquired at a significant discount to replacement costs due to the impact of COVID-19. The cost of buying a hotel in an urban market is currently at a 39% discount compared to building one, presenting a unique opportunity for investors to improve and reposition hotels at a lower cost.
Overall, the panelists emphasized the need for creative and strategic design solutions that add value and drive ROI in the hotel industry. By focusing on flexibility, budget transparency, and return on investment, hotels can create spaces that are both functional and profitable, ultimately leading to long-term success in the market.
Source
Photo credit www.hotelinvestmenttoday.com