[+] Lobby Groups: The Rise and Rise of ‘Workspitality’

“For years, we’ve been looking for ways to bring the work environment into the hotel and get people to come and dwell and spend time there,” Fender Katsalidis hotel specialist Angela Biddle says. But with the rise of “workspitality” the lines between the hotel and office sectors have never been more blurred as the two asset classes look to unlock their disused space. Biddle says the architecture firm is working on a number of “workspitality” sites across Melbourne as the trend takes off. Aiming to attract day workers looking to escape lockdown cabin fever, hotels globally transformed spaces to office use during the pandemic. Dubbed “workspitality” or “hotelification”, these mixed-use spaces are also being billed as strong investment opportunities after renovation by savvy developers to suit the new purposes. In some cases, REITs are bringing hospitality spaces in to funds to commercialise city spaces, giving investors a chance to get into the lucrative hospitality industry, which can deliver higher returns and dividends than other investments. “Tenants are more focused on tangible and improved building amenity, such as spaces with AV capabilities, town hall meeting spaces, outdoor meeting areas, quiet spaces, exercise areas and electric vehicle charging spaces,” Centuria Office REIT fund manager Grant Nichols says. ▲ QT Sydney was among the first hotels in Australia to give over space for workers. QT Sydney was one of the Australian hotels promoting vacant spaces to cooped-up workers during the pandemic, while globally Accor added modular workspaces to its hotels. The company said a number of its hotels have been transformed since the pandemic to incorporate contemporary and flexible public spaces for work, including Accor’s new Hotel Morris Sydney. Some believe it’s a trend that will endure in the post-pandemic work mix. Global workspace designers Space Matrix is billing “workspitality” as one of the top trends that will dominate the landscape, saying it enables companies to boost company culture. And increasingly new hotel projects are expanding to be truly mixed use, such as 1 Hotel in Melbourne that comprises 125 apartments, 280 hotel rooms, a 1000-seat function room, restaurants, cafes, gym, pool and spa facilities. Fender Katsalidis principal Angela Biddle specialises in hotel design. She says that hotels have long looked for innovative ways to encourage people to linger in their lobbies, but some have started taking that concept one step further by encouraging workers into vacant spaces as an alternative to working from home. ▲ Hotel spaces can become an extension of the workplace. “We’re now in a space in the post-Covid commercial world where we’re trying to work out how we can get people to come back into the office, and how hotels can secure more permanent tenants,” Biddle says. Fender Katsalidis has a couple of projects under way that provide a level of amenity within a commercial sector for tenants. “Whether it’s a co-working environment, meeting places and lounge and bar spaces, where people gather, these spaces can be an extension of their own commercial workspace as a way to meet and engage with others within a commercial building,” Biddle says. She says that developers have been conceptualising these spaces as work spaces for people who don’t want to invest in huge office spaces, where a percentage of the floor space is dedicated to meeting rooms, for example. “This meant that businesses could leverage off these hospitality spaces and also utilise the concierge services and making it a hotel experience if attending a conference.” Fender Katsalidis has a workspitality space under development in Melbourne at 500 Bourke Street which incorporates a public mezzanine with a wellness area, retail and a lot of space encouraging people to work in the lobby area. ▲ Accor has created workspaces in its hotel around the world—this one is in Paris. Two more “workspitality” spaces are being developed in the Melbourne Airport precinct, which will encompass a wellness offering and meeting place. “These developments will almost be an extension or alternative to an airline lounge, and there will also be an opportunity for other businesses to take up tenancies in the building,” Biddle says. “Hotel chains are looking for ways to tap into the trend towards working in spaces beyond the office. “Operators want to come in and provide the hospitality offer. There’s definitely a move towards this idea of bringing that level of service and amenity into the workplace that we haven’t seen before.” Lobby spaces that encourage people to stay in them have been increasingly popular among developers over the past decade or so, Biddle says. ▲ The lobby of 1Hotel, Melbourne. Bringing life into lobbies has been an aim of the sector for decades. “These spaces have tended to look at how to encourage people to live, work and play within the hotel lobby. “And not only is that designed to keep guests there, but also to encourage locals to come and work. “What’s happening now has flipped, where we’re trying to bring the hotel offer into a commercial environment, so that you’re not just here to come and sit down at your desk. “You’re actually looking for ways to incentivise people who work in an office to instead come to a hotel to work.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Lobby Groups: The Rise and Rise of ‘Workspitality’

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