Space exploration

This month our Pragmatists are focusing on the hospitality sector, and we begin by looking at how hotels are becoming more adaptable and flexible in terms of facilities. This is achieved by adopting a data driven approach to planning and design, where revenues can be maximised, whilst offering operational efficiency and enhanced guest experience.

I have been working in the hospitality sector for the past 20 years, representing operators, owners and developers. In this time, hotel facilities, and in particular public spaces, have become more adaptable to make better use of underutilised space and generate additional revenues. A shift in the guest demographics, value proposition, and aspirations for living, working, and travelling, have driven a need for facilities that offer technology-enabled, flexible, or modular space which allow guests to seamlessly switch between work, relaxation, and social activities.

The obvious challenge with the development of more communal and social centric spaces is how to maximise revenue without detracting from the experiences. The traditional drivers for hotel facilities success, such as price, quality of the service and convenience of location are being challenged. Consumers now consider wider factors, such as social and environmental impacts, experiences, and health and wellness, which now influence value perception.

So how can hotel properties adapt, and how can operators maximise revenues from a drive for more flexible social spaces?

Hotel lobbies
Hotel lobbies have historically been the main gathering space within a hotel's public area, but they do not always provide the optimum solution for either the guest or the operator when it comes to working or social gathering spaces, It is often more prudent to consider activating a hotel's meeting and food and beverage (F&B) facilities as a means of attracting a longer staying guest who will activate additional revenue streams. Designing more formal workspace solutions with communal areas, break out meeting rooms, or quiet spaces, can help generate additional revenue from the public areas.

Meeting rooms
Meeting facilities often seem the most obvious place to integrate flexible working space, after all the meeting rooms are already there. The difficulty here is that meeting rooms tend to be booked for the full or half day and converting all or part of the facility would restrict availability, and therefore the revenue. The answer then is to create a blend of the two, a private meeting space that can be booked, alongside a more informal communal working space, which may include semi-private areas. In this way you can still capitalise on the guests requiring more private facilities.

Restaurants
The design of restaurants should consider many factors, not least the optimisation of spaces to avoid underutilisation outside of busy meal periods. Utilising F&B facilities as co-working space, outside of the meal periods, will enhance returns. When spaces are fully optimised a review of concepts, that includes faster menu options, will increase the speed of service and reduce dwell time, increasing turn ratios and potential revenues.

Other aspects to consider include technology requirements, lighting, and sound levels to ensure that the space is conducive to working and holding events. This may require capital investment in existing properties so a clear strategy for return on investment is required.

Guest rooms
Guest rooms are at the heart of the hotel operation, but there is a driver to ensure that guestrooms stay relevant to the change in guest requirements. The use of underutilised guest rooms as private workspace is a focus in some properties, relevant to the market demand. Most International brands provide a sleeping, living, and working zone within their guestroom concepts, but changes required to enhance working facilities, or provide more flexible living arrangements, should always be considered.

The key to success lies in seamlessly integrating these trends while ensuring a memorable and comfortable experience for guests. Any concept that extends the average length of stay for a guest will provide revenue protection and will contribute to the property’s total revenue.

Well-being
There is a growing appreciation for the role that nature plays in promoting well-being, often referred to as biophilic design, and the integration of natural elements into indoor spaces has gained significant popularity. Incorporating living walls, indoor gardens, and large windows to maximise natural light not only enhances the aesthetics but also improves air quality and reduces stress levels among guests. These natural environments can provide flexible spaces for social gatherings, and co-working facilities, further enhancing revenue opportunities within a hotel property.

A hotel property therefore has much to offer over an office or home workspace, as by its very nature it incorporates hospitality services and facilities that allow a blending of the work-life balance. Where hotels need to capitalise on the ‘work from anywhere’ movement is to focus not only on a workspace alternative but on social and community interaction. This community centric approach is driving footfall and revenue to hotel properties. When this is combined with a metric-centred approach to the design of new facilities, and new ways of thinking about the revenue management of the space, there is a strong correlation between guest satisfaction and increased total revenues.

Paul Boldy