UK: Urban Living News, part of the International Hospitality Media (IHM) portfolio, in partnership with CoStays hosted its latest business breakfast debate at Treehouse London.
The topic of conversation focused on Unlocking the next generation of flexible living across the BTR, extended-stay, coliving, hotel and short-term rental sectors.
Following a short introduction from IHM’s editor-in-chief George Sell, the discussion kicked off with an overview of how the different hospitality asset classes are converging.
Key take aways from the event include:
• The hotelification of real estate is driving the blurring between asset classes. Customers are becoming more mobile (where they want to live), social (in the amenities they desire), and are looking for greater flexibility (length of stay).
• Coliving schemes are not limited geographically. Hotels and serviced apartments are rooted in central zones, close to transport and amenities, whereas coliving projects exist as contained ecosystems. There’s opportunity for coliving projects within fringe cities.
• Rental and home buying costs are not affordable and so there’s a shift towards flexible living. As a result, there’s greater expectation now regarding the facilities offered – guests and tenants end up extending their stay or contract because they come to enjoy it.
• Operators are exploring different use cases within their portfolio. Aparthotel operators are looking at self-contained larger apartments suitable for group bookings, and coliving operators are exploring the possibility of dividing one building in half to service short and long-stays separately.
• There are operational challenges when catering to different markets and customers. In larger properties, providing too much communal space and amenity can reduce profitability. Take breakfast, for example – does this need to be included in the price?
• Innovative design and space engineering should be led by operators and not restricted by councils and local authorities. In some cases, the product has been poor because developers skirt around planning rules. There’s an opportunity to establish a representative central body in government to give voice to where collective value can be created in flexible living accommodation.
Companies in attendance included Cairn Group, PKF, Saxbury, Fortress Investment Group, Mason & Fifth, Adagio, Ciel Capital, Foundry Real Estate, City Relay, AHV Associates, C1 Capital, edyn, city ID, Bridges Fund Management, and more.
IHM hosts regular Feed Your Mind events throughout the year based on the needs of our business partners. The event provides the opportunity for senior executives to raise issues and find solutions with their industry peers in a contributory format.
For further details and to learn more about our upcoming events, please email info@internationalhospitality.media.
