Colliers International is encouraging “savvy” hotel operators to harness the rise in remote working to adapt their site space and generate an additional source of income.
The new concept, entitled ‘Hybrid Hospitality’, comes as the group predicts that hotels could see turnover rise by 20% if they convert space into office areas that enable co-working and interacting.
Colliers said that the provision of more flexible work space in the hybrid hotel trend could deliver an “amenitisation” model, creating “greater benefit from and value to the hospitality industry”.
Colliers now predicts that an increasing number of hotels will be multi-functional for this purpose in the future, noting that companies have had to become more flexible by reorganising their space during the crisis.
The business model of flexible workspace providers is to rent out their spaces for five days a week. Leasing space for only one or two days is financially less attractive for these types of companies, and is therefore rare in practice.
Dirk Bakker, head of hotels for the EMEA region at Colliers International, said: “Hotels creating a place not only to sleep and eat but also to rent out space to meet, collaborate, socialise and work is a key way that underperforming areas within the building can be optimised from a revenue and income perspective.
“You can use hotel space twice while traditional work space only once. Not only could this concept appeal to institutional investors but I would not be surprised if this becomes a permanent new form of hospitality in the future.”
Harold Coenders, head of workplace innovation at Colliers International, said: “More organisations will switch to working from home in the future, supplemented with an office for a few days, or a smaller office, with flexible workplaces elsewhere. Hotels can fill this requirement.
“This does involve adjustments in hotels. Enticing shared workplaces, meeting rooms and co-working spaces are required. Some of the hotel rooms should be made suitable for working, with the bed concealed, so that you can receive visitors.”
He added: “This is about offering day-to-day flexibility for renting workplaces, a hospitality first experience with personal and high-quality service and an inspiring and dynamic environment with international allure.
“Hotel spaces can be utilised seven days per week while traditional offices for only five days. Given that 40% of waste comes from real estate and energy use, these figures provide fundaments for this hybrid trend to evolve in the future.”