Many businesses and brands strive to become all things to all people. In today’s post-pandemic world, they almost have to. This has penetrated the commercial real estate industry as well. Many developers realize they can gain more foot traffic, tenants, and dollars in the form of rent and spending if their assets are diversified.
The result? Today’s booming mixed-use trend. These all-encompassing assets offer opportunities for people to live, work, play and stay in a bustling environment that offers something for everyone.
This trend is certainly one that has legs. The Urban Land Institute notes that mixed-use projects are forecasted to grow 12 percent annually through 2030. The inherently pedestrian-friendly, sustainable design of mixed-use developments also appeals to city officials, many of whom are eager to provide more services and attract more visitors without adding more traffic and congestion.
Offering people a place that essentially caters to all of their needs seems like a no-brainer, but it can be harder than it sounds. All components of a mixed-use concept—whether that be multifamily, office, retail/restaurant, hotel or any combination thereof—must work in unison while maintaining their own unique identity and operational efficiencies for these developments to be successful.
Creating Community
Crafting individual components that are complementary yet different combines both art and science.
“Mixed-use developments have become popular because they match what today’s travelers and residents want,” said Jason Reader, COO of Remington Hospitality. “Guests look for hotel stays that feel more like home, while residents enjoy having hotel-style services at their doorstep. This mix allows hotels to grow their business while offering a more convenient, community-focused experience.”
This was the balance Related Companies looked to achieve when it developed the Grand LA’s marquee hospitality and residential towers, Conrad Los Angeles and the Grand by Gehry. Designed by Frank Gehry, the Grand LA’s 28-story, 305-room hotel and 45-story, 436-unit apartments have both supported Downtown LA’s tourism industry and added much-needed residential inventory when they opened in spring 2023.
The two luxury components were also able to conveniently play off each other. Conrad Los Angeles offers five dining options from chef José Andrés and ThinkFoodGroup, a 7,000-square-foot spa, 16,000-square-foot rooftop terrace with an expansive pool deck and more. The Grand by Gehry, meanwhile, offers a 24/7 attended lobby and porte-cochère with valet, outdoor pool deck, indoor/outdoor fitness center with a yoga studio, entertaining suite with catering kitchen, co-working space with private conference rooms and more.
Both luxury offerings can enjoy the 164,000 square feet of retail space, anchored by chef-driven restaurants, shopping and entertainment venues—as can the broader community of residents, workers and visitors.
“The site of a demolished parking structure has become the Grand LA, a destination attracting visitors from around the world and residents from across the region supporting our neighboring cultural institutions, and generating millions in revenue to the city and county,” said Stephen M. Ross, chairman and founder of Related Companies.
A hotel can certainly thrive as part of a new mixed-use development that revitalizes an area or maximizes an underutilized space…as long as it’s the right fit.
“Choosing the right hotel brand for a mixed-use development depends on how well the brand fits with the location and its audience,” Reader added. “Hotels that offer strong amenities, seamless operations and appeal to both visitors and residents tend to do best.”
Location, Location, Location
Reader believes mixed-use developments work best in one of three places: destination cities, tourist hubs or growing suburban areas. Not far from Downtown LA is another major destination for the live-work-play-stay set … Beverly Hills. A portion of this globally recognized locale is undergoing its own mixed-use transformation. The 17.5-acre development, which includes the existing Beverly Hilton Hotel, Waldorf Astoria Beverly Hills and the former site of a long-vacant Robinsons-May department store, will emerge as One Beverly Hills when it is completed in 2028.
The masterplan will seamlessly integrate the existing hotels into a unified site. It will also add new buildings to the site, including a luxury Aman Hotel with 78 all-suite guestrooms, Aman-branded residences across two towers and a stand-alone 100,000-square-foot Aman Club, the brand’s private members club.
“Aman Group’s strategy is to bring the brand’s coveted resort experiences to urban destinations,” said Vlad Doronin, chairman and CEO of Aman. “Staying true to our DNA and the revered Aman lifestyle, Aman Beverly Hills—nestled in its expansive botanical gardens—captures the legacy and heritage of Aman while connecting our guests with fascinating urban environments.”
One of the design strategies of One Beverly Hills involves creating a “sanctuary” of sorts where guests feel both connected to the property and removed from the hustle and bustle of urban life. This will be achieved by integrating 10 acres of gardens and open space into the mixed-use project to encourage exploration and relaxation, all while connecting the various components in a convenient way.
New walking paths and bike lanes will create permeable flows across the site. Wilshire Boulevard will act as a new green gateway, featuring a cascading stairway that leads pedestrians to the gardens, shops or restaurants adjoining the Beverly Hilton. The gardens pass over the road, separating cars and nature, while providing access to the hotels and major boulevards.
“Our masterplan creates a connected green oasis, which blurs the lines between indoor and outdoor living and harnesses LA’s creative spirit,” added David Summerfield, head of studio at Foster + Partners, the project’s lead design architect.
Shorehaven, the first phase of South Pier, a $1.8 billion master-planned waterfront destination featuring residential, dining, entertainment, shopping, hotel and office developments in Tempe, Ariz., also utilizes natural elements to connect its various components.
A key feature of Shorehaven’s design will be the use of large, sweeping curves that help define the space and create striking visual moments throughout the property. Developed by affiliates of Cantor Fitzgerald and Silverstein Properties, the project’s design reflects a connection to the natural environment, with a façade inspired by canyon formations and landscaping that enhances the waterfront experience. As with One Beverly Hills, pedestrian-friendly pathways, green spaces and open areas will be added to Shorehaven to create a sense of tranquility, while fostering social interaction through public events. It is scheduled for completion next year.
“Shorehaven will not only offer a luxurious lakeside experience but will also serve as a cornerstone for a community-centric destination, enriching both residents’ lives and the surrounding waterfront landscape,” said Jeffrey Deitrich, head of equity investments and portfolio manager at Silverstein Properties.
Loving Local
Attracting visitors is a key component of a mixed-use project’s success (particularly when you’re in the hospitality business) but paying homage to what’s local is a prudent strategy as well. Not only does this approach appeal to residents and workers in the development, but it can help hotels differentiate themselves within a competitive market.
This may include offering residents and workers from the other components a good neighbor discount on hotel stays and services. It can also include highlighting what makes this location so wonderful to begin with.
That local-first mindset is exactly what DC Partners set out to capture when it recently announced the Meuse, its 22-acre mixed-use project in Fredericksburg, Texas, that will feature a luxury boutique hotel and retail district at the corner of U.S. 290 and Main Street.
“Our ultimate goal is to create a development that seamlessly blends into the fabric of the community, becoming a natural extension of Fredericksburg’s Main Street,” said Acho Azuike, COO of DC Partners. “The Meuse will honor the city’s cultural legacy while becoming a sought-after destination offering new retail and dining experiences with luxurious accommodations for visitors and locals alike.”
A nod to the town’s founder, John O. Meusebach, the Meuse’s retail district will feature boutique shops, artisanal markets, tasting rooms and locally inspired food and beverage concepts. Thoughtfully designed open-air spaces and native landscaping will create a welcoming, walkable environment where visitors and locals can shop, dine and gather, thereby elevating the city’s profile as a place to be.
“Fredericksburg has long been a sought-after destination for weekend travelers, and we recognize the opportunity to grow mid-week visitation through strategic development,” added Brady Closson, CEO of the Fredericksburg Convention and Visitor Bureau. “The Meuse aligns with the vision to create a more balanced tourism economy, bolstering our local businesses and enhancing the overall visitor experience.”
Mixed-use developments offer hotel operators far more than just co-tenancy. When thoughtfully executed, they can serve as powerful demand generators that create new revenue streams. Integrating residential, retail, dining and office components presents a built-in audience to hotels, increasing non-room spending and fostering long-term brand loyalty.
But the value of a mixed-use setting ultimately depends on how well a hotel operates within the larger ecosystem. The difference between a profit multiplier and a costly misstep often comes down to what the hotel contributes to the larger project, as well as how effectively it engages both guests and locals. For hospitality leaders, success in mixed-use isn’t about simply fitting in. It’s about standing out in a way that elevates the entire destination.
This article was originally published in the May edition of Hotel Management magazine. Subscribe here.