May 31, 2018
By Andrew Simmons, Hospitality Studio Director, Nadel Architects
We’re living in an interesting time, one in which millennials account for the largest percentage of the U.S. workforce. In today’s digital, screen-filled world, millennials, more than any other generation, crave more human interaction, as well as experiences that allow them to feel actively involved and truly present. With the increasing desire for experiences trumping all else, the world is desperately trying to adapt in order to capture their spending power, while remaining inclusive of other portions of the population.
One such sector is multifamily development, which can take lessons from hospitality trends.
Lessons from the Hospitality Industry
Over the past few years, the hospitality industry has created dual- and triple-branded hotels. Not only do these hotels appeal to a broader range of consumers, they are ideal for owners and operators. They cater to all types; business travelers, families seeking a suite with a kitchenette for an extended stay, and millennials looking for an affordable place to crash. These millennials prefer to spend most of their time in communal areas, engaging with other guests and hoping to connect with the larger community.
The benefits of dual-branded properties are obvious. Offering multiple tiers of service at the same location maximizes efficiencies. Utilizing a single building, providing only three elevators rather than six, one check-in desk, kitchen, laundry room, gym (the list goes on), while at the same time accommodating twice the number of guests and appealing to a wider market is a benefit that can’t be overlooked.
But what does this mean for the multifamily sector? Both hotel guests and multifamily residents are increasingly of the millennial generation, and largely desire the same things – more amenities, more connection and more unique experiences.
The Future of Multifamily
As millennials remain reluctant to buy homes and prefer to rent, developers can use the current dual-branded hospitality model and add long-term, residential apartments to the mix, offering yet another layer of social connectivity for the user, and profit for the provider. Common areas such as pools, clubhouses, lounges and restaurants will be more activated than ever, and the appeal of a constant mix of people will prove irresistible to this demographic.
At Nadel Architects, we’re seeing the benefits of this model already. The Monarch Bay Shoreline Development we’re designing in San Leandro, California consists of a 200-room Hyatt Hotel and 285-unit apartment complex with a full range of amenities, including a fitness club, spa, business center, Wi-Fi lobby, café, restaurant, retail, event spaces and single-family homes.
This major development represents a marriage of the multifamily and hospitality sectors, because it reiterates the notion of what consumers want. It fuses modern-day residential living with upscale, luxury apartment-style living quarters, thus providing many experiences, all in a single location.
*Pictured: Andrew Simmons, Monarch Bay Shoreline rendering
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