Design hotels have a better rate of occupancy, can charge more and have similar or lower operating costs than their non-design counterparts, reports Meetpie.
Lukas Hochedlinger from Christie & Co studied the performance of European design hotels and compared it to non-design hotels. He found that 70% of the design hotels outperformed competitors when it came to occupancy and 81% could charge higher room rates. He also found that 62% of design hotels had similar or lower operating and maintenance costs when compared with non-design competitors.
This news suggests that, with regards to the events industry, design function venues could help drive the success of events.
The research formed part of Mr Hochedlinger’s masters thesis. He found that it was essential for design hotels to differentiate themselves from competitors. “This applies to interior and exterior design as well as to service design and other aspects,” he said. “One has to create a feel-good atmosphere that makes it comfortable and enjoyable for guests to stay. Many design hotels have made the mistake to purely focus on chic design and staff.”
This highlights just how important the design and layout of function venues is. The more unique the venue, the more guests will enjoy it and the event will be more successful.
Mr Hochedlinger said that there were limitations when it came to design hotels. Those include a higher development risk, such as higher developmental costs and longer timing, as well as a higher obsolescence risk in case the design isn’t timeless.