Thought leaders from the design world talk about what developers need to consider to generate a good return; it often starts with processes.
NATIONAL REPORT – Beautiful hotel design is dazzling and social
media gold; beautiful and profitable hotels, however, is what owners want and
need.
This story marks the third installment in a series on design trends, as well as design challenges and opportunities to drive profitability. Part 1 focused on new hotels designers can't wait to see in 2025 and Part 2 discussed beyond Net Zero design.
In this feature, Hotel Investment Today reached out to the design community
to ask them how developers should work with designers differently in 2025 to
drive better ROI. Here is a compilation of what thought leaders had to say:
Jake Zwaagstra, CEO, TriCelta Development, Dallas/Ft. Worth,
Texas
In any hotel development process, there are many diverse
perspectives at play, including designers, engineers, contractors, and more.
With hotel construction costs continuing to increase with inflation year over
year, it is crucial to develop strategies that ensure these competing
priorities remain in check.
One such strategy is to adopt an early and accurate
budgeting system, aligning the design team’s vision with the financial
constraints of the project. Teams should continue to refine design and budget
as the project progresses by keeping a close eye on fluctuating market
conditions.
In 2025, we hope to see continued increased adoption of the
design-build approach because it allows project teams to stay flexible.
Design-build unifies competing voices into a single team that works together
throughout the full project. By nature, it is a continually iterative process
that allows teams to continue refining the design throughout the entire
building process, ensuring that changes can be made in real time. This helps
prevent cost escalations down the line.
Enrique Vela, principal and director of Strategy, VStarr,
West Palm Beach, Florida
Having constant and open communication about operations. I think operators have
learned and evolved a lot over the past couple of years, discovering new
efficiencies along the way. Spending time with developers and architects is one
thing, but bringing the operators on board to ensure you’re all on the same
page will help the design be both holistic and optimized for operations.
Consider everyone a partner in the process and have those conversations early
and often.
Jessica Werner, chief creative officer, Sage Hospitality,
Denver
To deliver maximum ROI for owners, designers and developers
must align the business plan, vision, value creation, and market positioning
opportunities from the outset, ensuring that design is an integral part of the
project's strategic foundation rather than the visual language of an output.
The most beautifully designed spaces and prominent brands succeed only when
built on a strong foundation driven by a cohesive vision, strategic planning,
feasibility, and collaboration with the right partners—transforming what is
possible and reimagining every opportunity.
Design-build unifies competing voices into a single team that works together throughout the full project. By nature, it is a continually iterative process that allows teams to continue refining the design throughout the entire building process, ensuring that changes can be made in real time. This helps prevent cost escalations down the line.
Jake Zwaagstra
Lisa Haude, senior vice president, director of Interiors, LK
Architecture (Interiors Division), Wichita, Kansas
As designers, we need to continue to push ourselves to be
creative as budgets and timelines grow tighter. We need to clearly understand
the scope of work and the developer’s expectations for each project so we can
maximize the potential of the space–functionally, both aesthetically and
financially.
Andrea Dawson Sheehan, principal, Dawson Design Associates,
Seattle
Owners and designers need each other more than ever with
innovation being at such a premium in lifestyle positioning. These
relationships are best when they act as a united team built on trust. I know it
is fashionable to find a new designer for every market, but I don’t see where
that makes much sense. It means they are always starting over and always
searching, which is both time-consuming and expensive. We don’t choose a new
attorney for every deal. Same with design.
As the big brands continue to gobble up the smaller
trendsetting independent lifestyle chains, the demand for bespoke hotels will
increase, especially at the luxury and upper luxury level. Teams will need to
be tight and move faster. The industry wants more visionaries who are willing
to take risks and push the envelope to keep it fresh and vibrant. Owners
wanting to work independently will need a very innovative, experienced designer
that they trust and to help them navigate.
Think outside the box. Lifestyle guests want to discover
something new and fresh so that they can share their discoveries with friends
and family. Guests travel the globe looking for the next special hotel
experience which is why a high percentage of the Traveler’s/People’s Choice
awards are Independents. Collaboration is key. Design by committee is seldom
dynamic.
Casey Scalf, director, The Society, Seattle
Developers and designers should work faster. There should be
an increased speed to market. Speeding up timelines, reviews, and being able to
get a shovel in the ground to get open as fast as possible is the biggest way
to drive ROI for owners.
Harry Wheeler, principal, JCJ Architecture, Boston
As designers, we continue to prioritize efficiency and
multi-purpose spaces. For example, a lobby living room that transforms into a
lounge at night, serving specialty cocktails. Designing spaces that can serve
multiple functions maximizes revenue potential in public areas.
Continuing to evolve the hotel story: make the hotel design
a destination—a place that both guests and locals want to explore and
experience. Bring activity into the hotel to generate buzz and, in turn,
revenue.
I know it is fashionable to find a new designer for every market, but I don’t see where that makes much sense. It means they are always starting over and always searching, which is both time-consuming and expensive. We don’t choose a new attorney for every deal. Same with design.
Andrea Dawson Sheehan
Look at the offerings from an amenity standpoint: guests are
becoming more discerning, and as coffee shops, gyms, and restaurants expand
their offerings, hotel amenities must do the same. Is there a way to capture
additional revenue from amenities? Consider fees for small meeting rooms for
the public or work-from-home opportunities for a daily rental fee, allowing
people to host meetings or Zoom calls outside their homes. How can the hotel
activate quiet spaces to better serve the community?
Lastly, and not always the most popular, guest room
cleaning: More and more, hotels are offering guests the option to choose
whether or not they want daily room cleaning. Obviously, the fewer services the
hotel provides, the more staff and resources they can save, making the
operation more profitable.
Sonya Haffey, CEO, VStarr, West Palm Beach, Florida
It’s focusing on the little things like the smaller changes
and upgrades that ensure your maintenance is up to par. It’s important to keep
an eye on aesthetics and how they’re impacted over time. If it looks dated,
making those smaller changes immediately versus waiting for a larger renovation
can be beneficial to the project as a whole. I don’t advise picking the easy or
least expensive way out because in the end you might have to replace that item
or upgrade 10 times over. Handling maintenance in a timely manner avoids you
spending more money in the long run and your ROI going down over time.
Joe Pettipas, principal, Arcadis, Toronto
Since a ‘memorable experience’ is key to developing loyalty,
it’s imperative for both the developer and designer to embrace the property’s
locality, collaborating with the ownership group to stay true to the brand
while engaging with the local environment. Traditional symbols of luxury, like
marble finishes and over-the-top furnishings, have become easy to replicate,
making their way into the mid-market. True luxury today is about giving access
to experiences that connect people to places, delivering outstanding,
personalized service seamlessly and with impact.
Galen Vassar, senior interior designer, associate principal,
Lawrence Group, St. Louis, Missouri
Budget transparency. Designers can be the best stewards of
your investment if you let us. We seem to be in a cycle of continually ‘taking
the test without the book’ and designing without a budget clearly defined – if
we take the initiative to share budget information early on in a project, we
will build better trust between us and deliver a product without sacrificing
interior elements that directly impact guest satisfaction.
We seem to be in a cycle of continually ‘taking the test without the book’ and designing without a budget clearly defined – if we take the initiative to share budget information early on in a project, we will build better trust between us and deliver a product without sacrificing interior elements that directly impact guest satisfaction.
Galen Vassar
Chantell Walsh, Strategic Hotels & Resorts, Chicago
Prioritize adaptive and flexible designs for space that can
accommodate changes without significant reinvestment. Private dining rooms
that could function as a meeting room, to dining, to an evening cocktail event.
Implement wellness-oriented features which will enhance
guest satisfaction and justify premium pricing.
Reimagine spaces with potential incremental revenue like
experiential dining concepts, pop-ups or partnerships with brands and local
businesses. Collaborate to create revenue generating designs.
Prioritize designs that cater to target audience to ensure
guest satisfaction. Personalized experiences that differentiate the asset
and become guest centric.
Foster collaboration and data driven analytics early in the
process to ensure alignment of financial goals with aesthetic and functional
outcomes.
Monica Cuervo, managing director, Americas, WATG, Los Angeles
Developers and designers must prioritize understanding and
addressing guest preferences with a focus on specialization and customization
as guests are increasingly savvy and thoroughly research their hospitality
options. They are selective about the experiences they seek, making targeted
market research critical for success. From culinary destinations like Nobu to
fashion-branded spaces in Miami, catering to culture and lifestyle expectations
is imperative for 2025 and beyond. Developers and designers must uphold that
every aspect, from the overall concept to the smallest details, reflects the
essence of the hotel brand.
Richard Luis, managing principal, Architecture, WATG, Dallas
In 2025, developers and designers must focus on creating
multi-functional, adaptable spaces to meet evolving guest needs. Hybrid spaces,
such as co-working lounges that transform into social hubs, improve
functionality and revenue potential. Sustainability is critical and integrating
eco-friendly materials and energy-efficient systems reduces costs and aligns
with today’s expectations and future ones. Leveraging data analytics during
design enables precise targeting of preferences, supporting every decision
support profitability. Early integration of advanced technologies, like AI and
smart systems, will further enhance the guest experience while optimizing
operations for maximum ROI.