If you are a landowner or real estate developer with a large piece of land and looking to invest in the hospitality sector with higher return on investment(ROI), mixed-use developments can be a great solution. These developments provide a comprehensive and diverse range of options, reducing risk and offering multiple sources of income. With the potential to attract a larger audience, mixed-use projects can be a smart investment choice for those in the hospitality sector.
Mixed-use developments consist of multiple components such as residential, commercial, entertainment, food and beverage, and hotel spaces. This diversity of income sources reduces the risk of relying solely on one source of revenue, such as a hotel. In the event of unforeseen disruptions like the COVID-19 pandemic, hotels within mixed-use developments are more likely to recover quickly as there is already a captive audience in the area.
Mixed-use developments that include villas provide an additional investment opportunity for investors, villa owners and hotel operators to recoup costs and generate returns. With the popularity of second homes growing in India, mixed-use projects that offer a mix of leisure, retail, and hospitality elements become more attractive to buyers.
A mixed-use development can help with revenue generation right from the construction phase by integrating various income sources such as pre-leasing commercial spaces, selling off-plan branded(facility managed by hotel operator) residential units or villas.
Branded hotels are known for their reputation and high-quality services, and having one within the development can increase the overall appeal and value of the project. Additionally, many branded hotels offer facility management services for villas, providing a convenient and hassle-free ownership experience for buyers. This not only enhances the appeal of the villas, but it also provides a more complete offering for potential buyers and increases the chances of successful sales.
Including a branded hotel within a mixed-use development can significantly boost villa sales.
With the added prestige and services that come with a branded hotel, a mixed-use development that includes one is more likely to attract higher-end buyers and generate higher returns on investment.
Mixed-use projects can attract a larger audience, making them an excellent investment option for those in the hospitality sector. Projects that feature a hotel, apartments, offices, and shops provide potential buyers and renters with a comprehensive and diverse range of options. The lively and engaged community created by the mix of tenants and customers leads to increased foot traffic and revenue-generating opportunities for local businesses.
Compared to traditional developments, mixed-use projects can be more environmentally sustainable. Integrating different uses such as residential, business, and hotel spaces enables more efficient use of resources like electricity and water. With increasing awareness about sustainability, being environmentally friendly can be a valuable marketing tool for these projects.
Mixed-use projects also help optimize the floor space index (FSI) in Indian cities. Low FSI and high land costs in major cities can make standalone hotel projects unfeasible in certain locations. Integrating a hospitality project with a retail or office component can make better use of the land and make the project viable.
In conclusion, mixed-use developments are an astute investment choice for individuals interested in the hospitality sector as they provide multiple sources of income, appeal to a wider spectrum of tenants, customers and buyers, and promote environmentally friendly practices. Spectra Hospitality Services can assist you in realizing the full potential of your investment by providing comprehensive and strategic conceptualization and implementation of various services and offerings. By utilizing our expertise, you can reduce project risk and maximize Return on Investment (ROI) with our support in brand affiliation and negotiation of favorable terms. To avail of our services, kindly reach out to us at [email protected].
