Hotelization is the new buzzword in real estate. Especially popular within the multifamily residential buildings, coliving spaces and office buildings, the trend refers to incorporating hotel-like amenities and services into property management practices. The underlying idea is to enhance the quality, comfort and convenience of living, much like what guests experience in hotels.
The concept finds its roots in the hospitality industry's success, which revolves around offering impeccable service and efficient operations. This is exactly what modern residential and commercial real estate is about – staying ahead of the competition by creating exceptional occupier experiences.
As many buzzwords in the industry, the concept of hotelization is often misinterpreted. Let's discover what it actually means, and what it doesn't.
01 Key Features of Hotelization:
Creating hotel-like experiences lie in integrating various features commonly found in hotels, such as concierge services, housekeeping, maintenance, security, and shared amenities; as well as introducing modern technologies like smart home systems, keyless entry, and automated services for convenience and efficiency.
- Professional Management: Hotelization involves employing professional community managers or partnering with established hospitality management companies to oversee tenant-centered operations, ensuring high-quality services and efficient maintenance, even on a personal level.
- Amenities and Services: Shared amenities like fitness centers, swimming pools, rooftop gardens, business centers, and entertainment areas are key components of hotelization. Additionally, services like housekeeping, parcel management, laundry, valet, and 24/7 concierge support add value to the occupants. When these can be managed with an easy-to-use digital tool like a mobile app - that's the cherry on top!
- Occupier Experience: Emphasizing customer satisfaction is a fundamental aspect of hotelization. This involves creating a warm and welcoming atmosphere, fostering a sense of community, and providing personalized experiences that cater to the diverse needs and preferences of the residents or occupants.
02 What hotelization is not
Hotelization, as we know it, applies to the residential and commercial real estate to a heavier extent, and skips the following:
- Traditional Hotels: While hotelization borrows certain elements from hotels, it is not the same as a traditional hotel. Hotelization involves integrating hotel-like services and amenities into different types of properties, whereas a hotel is a dedicated establishment that solely offers accommodation and related services.
- Short-term Rentals: Hotelization does not necessarily imply the conversion of properties into short-term rental units. While some hotelized properties may offer flexible rental options, the primary focus is on long-term occupancy and creating an enhanced living or working environment.
- Exclusive to Luxury Properties: Hotelization can be applied to properties across various price points and segments of the real estate market. While luxury developments often adopt hotelization to offer premium experiences, the concept is not limited to high-end properties. It can be adapted to cater to different budgets and target audiences.
Summary
Hotelization in real estate symbolizes the shift towards creating living and working spaces that emulate the comforts and conveniences of hotels. By integrating hotel-like amenities, services, and management practices, property owners and developers can provide enhanced experiences and increase the value of their investments.
Watch the recording of our event RExperience, where we dove deeper into the customer experience trends in residential and commercial real estate.
