Hospitality-focused developers and real estate professionals gathered at Bisnow’s Future of Mid-Market event this week to describe the ways hotels can revitalize neighborhoods.
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Panelists also discussed how designing for Millennials means focusing more on community and social spaces.
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Pacific Eagle SVP Hans Galland (right, seen here with Jeremy Agraz) said the hospitality sector is an incubator for revitalization. Hospitality assets are long-term projects that form ties to the local community, he said. Pacific Eagle likes to focus on transitioning neighborhoods with Millennial demographics.
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Paladino western regional director Dina Belon stressed the importance of adaptive reuse for hospitality projects. She said warehouse space with wide-open floor plans is a natural target for conversion into hotel space. With technical enhancements, the projects can be made sustainable and economical.
Design should also cater to Millennial guests looking for experiential hotel stays. Common rooms should be prominent so guests can meet other people and form friendships. Dina said thermal comfort was another often overlooked but critical element to hosting Millennials.
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Woods Bagot regional managing principal Terry Meurk (right, next to Ed Feene) believes strong hotel development in places like UN Plaza can accelerate revitalization of a blighted area by bringing in a new population. “Hotels should be placeholders that can change the environment,” he said. The final piece of the puzzle, according to Terry, would be a grocery store in Mid-Market. A retail establishment would go a long way to transforming the street level in a maturing neighborhood.
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Synapse Development Group CEO Justin Palmer (right, with moderator RMKB partner John Dooling) believes the Yotel concept, which stresses small and well-designed rooms, is a “home run” and makes great financial sense.
Justin also sees crowdfunding as a marketing opportunity. The company’s campaign for 1095 Market had rewards such as naming a bar stool after a particular contributor. The development's neighbors felt a sense of ownership by participating in the process, he said.
Synapse went to the capital markets for more substantial financing. He cautioned that though his company was able to secure funding, the markets remain difficult and predicted some projects would run into problems.
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