membership base as a primary demand generator. With a focus on providing social interaction and workspaces for like-minded individuals, often in niche industries such as fashion, fitness, arts and cinema, these concepts aim to produce a creative and local experience.
Membership clubs often feature programs and events with culinary, academic and wellness elements, appealing to a broad array of non-member hotel guests. With multiple components, lifestyle membership clubs benefit from diversified revenue streams, including annuities from membership fees and guest fees, and
have greater flexibility to use lower-cost, nontraditional spaces, sometimes with locations across various venues throughout a city. Although these club concepts initially originated in major cities with significant artistic influences, such as New York and London, similar concepts have emerged in cities with expanding creative scenes, such as Berlin, Budapest, Nashville and Shanghai.
As development costs and land prices in metropolitan cities continue to soar, alternative lodging concepts have presented developers with unique opportunities to reduce costs while maintaining the ability
to generate strong demand. With shorter development periods, smaller rooms and the ability to use nontraditional spaces, these concepts can have lower development costs than traditional full- service hotels.
Additionally, through efficient uses of space, lower operating costs and management terms that are both less expensive and more flexible than traditional chain management agreements, these products can have higher operating margins than traditional full-service properties. As a result, many of these alternative lodging products have penetrated some of the most expensive and highly trafficked neighborhoods in the world, including Times Square in New York and South Beach in Miami. However, as these products typically emphasize design as a component of the hotel’s experience, hoteliers must ensure that soft costs and furniture, fixtures and equipment expenses are appropriately managed.
Despite their growing popularity, many investors and lenders consider alternative lodging products as appealing only to a specialized consumer whose preferences will ultimately change with trends. As demand for new lodging products and experiences continues to grow, hoteliers will need to balance satisfying this demand with investments in traditional products.
membership base as a primary demand generator. With a focus on providing social interaction and workspaces for like-minded individuals, often in niche industries such as fashion, fitness, arts and cinema, these concepts aim to produce a creative and local experience.Membership clubs often feature programs and events with culinary, academic and wellness elements, appealing to a broad array of non-member hotel guests. With multiple components, lifestyle membership clubs benefit from diversified revenue streams, including annuities from membership fees and guest fees, andhave greater flexibility to use lower-cost, nontraditional spaces, sometimes with locations across various venues throughout a city. Although these club concepts initially originated in major cities with significant artistic influences, such as New York and London, similar concepts have emerged in cities with expanding creative scenes, such as Berlin, Budapest, Nashville and Shanghai.As development costs and land prices in metropolitan cities continue to soar, alternative lodging concepts have presented developers with unique opportunities to reduce costs while maintaining the abilityto generate strong demand. With shorter development periods, smaller rooms and the ability to use nontraditional spaces, these concepts can have lower development costs than traditional full- service hotels.Additionally, through efficient uses of space, lower operating costs and management terms that are both less expensive and more flexible than traditional chain management agreements, these products can have higher operating margins than traditional full-service properties. As a result, many of these alternative lodging products have penetrated some of the most expensive and highly trafficked neighborhoods in the world, including Times Square in New York and South Beach in Miami. However, as these products typically emphasize design as a component of the hotel’s experience, hoteliers must ensure that soft costs and furniture, fixtures and equipment expenses are appropriately managed.Despite their growing popularity, many investors and lenders consider alternative lodging products as appealing only to a specialized consumer whose preferences will ultimately change with trends. As demand for new lodging products and experiences continues to grow, hoteliers will need to balance satisfying this demand with investments in traditional products.
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