The Role of Hotels in Mixed-Use Developments: Insights from GIOHIS 2024

About GIOHIS event

The 7th Global Hospitality Investment Forum (GIOHIS) took place at Abu Dhabi's Dusit Thani, attracting top hotel industry figures. With its distinctive owner-centric focus, the event highlighted key hospitality real estate insights, drawing in a significant number of investors and executives from across the globe for rich discussions and networking.

RLA Global's presence

Among the numerous panels at this year's event, one moderated by Paul Boldy, Managing Partner at RLA Global, stood out for its exploration of a critical topic: "Hotels in Mixed-Use Projects - Anchors or Baubles?" This panel delved into the intricacies of mixed-use developments and examined the pivotal role hotels play within these environments.

Panel Members:

Abid Butt - Group CEO / Assets Group

Joao Cravo - Vice President of Operations / United Hospitality Management (UHM)

Imran Changezi - Development Executive Director / Diriyah Gate Company Ltd. (DGCL)

The context

Themes of branded residences and integrated living, highlighted in earlier panels, set the stage for a rich context in which Paul's session was situated.

These themes underscored the evolving landscape where the boundaries between living spaces and hospitality blur, fostering integrated lifestyles. This backdrop provided a comprehensive view of the dynamics at play in mixed-use developments.

Definition

Mixed-use projects, characterized by their diverse asset classes, multiple operators, varying funding models, and distinct success drivers, present a unique set of challenges and opportunities.

Key takeaways

A significant portion of the conversation revolved around the balance between guest-focused and owner-focused returns, underlining the ongoing debate within the industry on prioritizing stakeholders.

The Anchoring Effect of Hotels: A crucial takeaway from the discussion was the varied role hotels play in mixed-use developments. In projects without branded residences, hotels often serve as anchors, enhancing marketing value and overall appeal. Conversely, in developments with a strong presence of branded residences, hotels transition to a supporting role, complementing the residential anchor.

The Importance of Market Analysis: The panel unanimously agreed on the necessity of thorough market analysis to determine the optimal mix of assets. It was emphasized that each component of a mixed-use project must not only complement each other but also be viable as standalone entities to ensure financial sustainability.

This nuanced exploration by RLA Global and participating industry leaders underscores the complexity of integrating hotels into mixed-use developments. The insights gathered from the discussion illuminate the careful consideration required to leverage hotels effectively, whether as primary anchors or supportive elements, to maximize the potential of mixed-use projects.

Paul is introducing the Panel's theme: Hotels in Mixed-Use Projects - anchors or baubles?

Panel discussion - live, online

Paul with Abid Butt