Hotel repurposing Part II
Just a few more months inside this global pandemic and more real example of Co-Living operators moving to approach assets under stress in the traditional hospitality industry. In the mid of the summer Weave Living, a HK operator, published a post where they explained the path towards repurposing hotels in micro-unit/co-living spaces. I guess that also in these projects a little of flexibility in terms of concepts needs to be applied. The feeling of a house or apartment will be difficult to be replicated, liket also to dissipate the cold atmosphere of some hotel floors, but i think that a good interior design work could improve drastically the wellness feelings.
Yesterday was the turn of Common to post an article directed to hotel owners under stress and illustrating their strategy to adapt co-living concept to this assets, honestly with a good presentation, showing pro and cons. Europe will be an interesting geography to push this adaptive use, also considering the lower percentage of flagged hotels.
These two examples testify the open and flexible strategy in the mind of the largest (and smartest) co-living operator: in a world where the scarcity of good located assets impact drastically the growth plans, opening to different unit types and embracing micro-units as well as SRO and co-living is a testimony that not being uncompromising is the better way to expand.
Another consideration is related to how this repurposing of hospitality assets towards residential is driven by alternative living players instead than by hotel chains or owners. I understand that tourism and short-term stays are their DNA but maybe isn't the right time to evolve and embrace new targets? Really insane to notify this passive attitude.
For example in Mallorca some big players like Melia are trying to attract local customers with a 15/30% discount to daily rates: do they really think that someone living here, in a island where the maximum distance is 100km, that can enjoy the sea potentially every day, will be interested to spend days in a hotel, paying hard money?? It smells of desperations and no long term views: why not to address more marketing resources to innovation?