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  • Writer's pictureJustine Rowbotham-Belot

Integrated Hotel + Residential Developments 

Although it is not a new idea, integrating hotel with purpose-built residential uses within a single building can offer many benefits to developers and the community. If done correctly, the integration can positively contribute to housing needs while serving as a destination for visitors.  


When contemplating this approach, it is essential to evaluate the geographic location and local population dynamics. These factors are significant and can influence the decision-making process. In densely populated cities with high visitor traffic, it may be less advantageous to program a substantial portion of a hotel into residential units. This is because the demand for hotel accommodations is likely to remain strong, making it more profitable to maintain a larger hotel presence and room count. On the other hand, in smaller towns with lower visitor turnover rates, programming a significant portion of the property as residential units could be a more viable option. This approach can cater to the local community's housing needs while still meeting demands of accommodations for visitors. 


In such cases, striking a balance between catering to the needs of both visitors and residents becomes crucial for maximizing profitability and community satisfaction. By offering a mix of hotel and residential units, developers can diversify their revenue streams and adapt to changing market conditions. This hybrid model not only addresses the demand for short-term accommodations but also contributes to the long-term sustainability of the property. 


Moreover, incorporating shared amenities can enhance the overall appeal of the property to both guests and residents alike. Common spaces such as rooftop gardens, fitness centers, and restaurants can promote a sense of community and create a unique living experience. Amenity spaces may be utilized by both hotel guests and residents resulting in more frequent use and provide the opportunity to adjust pricing accordingly. There is also the opportunity to add more amenity spaces and boost the development’s appeal to a more sophisticated user seeking luxuries such as room service, laundry service, housekeeping, and immediate access to in-house restaurants.  


Other considerations: 

  1. The integration of the user groups within densely populated urban centers may bring more residential units to high-demand markets and ultimately aid to ease the current housing crisis. 

  1. The hotel guests will benefit from an environment of “stable residential feel” giving a home away from home feeling that traditional hotels may not possess. 

  1. Eases low-income issues pertaining to seasonal and market fluctuation in hotel developments. 

  1. Additionally, implementing sustainable practices, such as energy-efficient design and waste reduction initiatives, can further attract environmentally conscious guests and residents. 


Ultimately, the decision to offer a dual-use development requires a thoughtful consideration of various factors to ensure the best outcome for both the developer and the local community. By adopting a strategic and flexible approach, developers can leverage the strengths of both the hospitality and real estate sectors to create a successful and sustainable mixed-use development. 


Photo credit: Westcorp Developments, Downtown Hotel, Kelowna BC.

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