The Evolution of Hospitality and Real Estate
Rowland+Broughton team members attended the 2019 Hotel Summit & Expo, May 13 at the Born Hotel in Denver, to learn about current market trends in hospitality. The Expo focused on local development in Denver and the High Country, as well as national market trends.
In an age of leisure, where entertainment and travel are driving building and business development, competition to serve these needs centers around accessibility to a major airport, amenities, and local culture. New cities are emerging as the most desirable places to visit and hold events.
Denver is a relatively young city, centrally located between coasts, with several renowned recreation destinations. The city supports several market sectors offering a diversity of business hubs in and around the central business district. Secondary sectors are creating new opportunities for events and destinations beyond the central business district. Denver International Airport (DIA) added 23 nonstop flights to 210 destinations this year alone.
Recent construction has anticipated demand increase that has yet to catch up with supply. Until demand matches supply, renovations are predicted to dominate construction in the coming 5-12 years. This also results from a demand for existing hotels to compete with expectations set by new construction. The High Country is subject to seasonal fluctuation, leaving growth closer to urban density to remain dominant. However, mountain towns with access to an airport and multi-season recreation are more poised for growth.
Real estate supporting hospitality is increasing to support a decreasing labor force. Maintaining a loyal and trained workforce is essential to providing quality and consistency, and reduces operator costs to train new staff. Third party providers for labor are more expensive and don’t offer the loyalty stemming from hiring personnel directly who are devoted to and supported by the brand.
Guests are expecting a more customized interaction, and interface more than ever with the hotel staff via media, concierge services, and food and beverage service. Alternative rental companies focus heavily on this interaction, as they tend to draw guests interested in authentic and unique regional experiences guided by a local expert. Support to make these experiences more accessible, such as ride share and tourism marketing, is driving alternative hospitality typologies. Offering a variety of types of lodging helps capture a diverse guest demographic, making this available under a single brand booking platform.
Hospitality is reframing itself to evolve with increasing travel, developing technologies, and diversifying recreation. R+B looks forward to forging new design in this age of new opportunities.