Office to hotel redevelopments accounted for a fifth of the £2.4 billion invested in the UK hospitality sector in 2023, according to data released earlier this year. Following the news that London’s iconic BT Tower will become a hotel, this trend is transforming cities and its increasingly vacant spaces.
The rise of hybrid and remote working has reduced the demand for traditional office space, prompting property owners and developers to explore alternative uses for their buildings to remain profitable. Commonly known as ‘hotelification’, the concept signifies the repositioning of residential, retail and office environments with hotel-like amenities.
This can be taken one step further with the “Great Hotel Conversion Trend”, which has advanced ‘hotelification’ by driving the reimaging and repurposing of structures to create a more innovative and smart hotel offering. In many cases, physically converting these spaces into hotels has emerged as an attractive and viable solution, particularly due to the prime and central location of many of these office buildings. These conversions play a key role in revitalising neighbourhoods and function as a focal centre for residents and visitors alike.
Underpinning this concept is the idea that vacant spaces such as old warehouses, factories and other forgotten structures can be reimagined as vibrant hotels, breathing new life into urban landscapes. Hotels, in particular, are best suited for this repurposing by taking the existing square footage and maximising efficiency to allow for more rooms in the space with little extra construction needed. CityHub’s modular concept, as an example, can install twice the number of rooms per square metre compared to a standard hotel, resulting in a radical drop in CO2 emissions. By optimising land use and promoting resource efficiency through shared infrastructure, these developments can play a pivotal role in reducing the environmental footprint of the hotel sector.
As urban spaces undergo this rapid transformation, technology plays a vital role in offering amenities that seamlessly blend smart features with a personalised touch. Artificial intelligence has seeped into the realm of travel and, as this revolutionary technology continues to evolve, its impact is nothing short of transformative – from personalised recommendations tailored to individual preferences to seamless booking experiences powered by machine learning algorithms. We’ve come to expect technology in our Hubs –USB sockets, super-fast WiFi and keyless wristband entry have become a basic service expectation. However, taking approaches that fully integrate the guest journey, combining both innovative IT solutions and a holistic service approach, can not only help to streamline operations but also vastly improve customer satisfaction and retention. Striking the balance of technology and human experience was integral to the CityHub vision as it can create a guest experience that provides the best of both worlds: cutting-edge tech for a more efficient, connected stay without sacrificing an authentic, local human touch.
Hotels in urban settings often focus primarily on bed capacity, however equally important is combining an atmosphere of privacy with community-focused environments. Changing consumer demands and the rising costs of modern city living means guest preferences have blurred the way spaces, particularly shared ones, are used. The idea of ‘co-staying’ in a hotel is gaining traction with a new generation of travellers, particularly where amenities, even luxury ones, can be shared. Hotelified properties often blend the comforts of home with the services and amenities of a hotel, offering a unique hybrid that appeals to a wide range of guests – from business travellers to tourists to long term residents. By pooling resources, hotels can offer multifunction spaces including spa-like bathrooms, high-end fitness centres, or lavish communal areas to work or socialise in. These can be customised and assembled rapidly, and, more importantly, reduce the construction waste required while still maximising on guest experiences.
With the increase in the number of office-to-hotel conversions, it is clear that this trend is reshaping how urban spaces are perceived by not only investors and local city authorities but also visitors and tourists. The integration of shared amenities and multifunctional spaces, blended seamlessly with the latest technological advancements, is not just a passing fad; it is a response to the evolving demands of travellers who prioritise flexibility, community and sustainability. Hotels that prioritise sustainable practices, which have the potential to also increase revenues, will have in hand a significant advantage that can set them apart from competition.
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