Trends in Mixed-Use Development

Hotels are no longer just hotels. The ones still acting like they are will be the first to get crushed in the next 5 years. Occupancy rates in the US are projected to hit 63.4% this year, just shy of the 65.8% we saw in 2019. Average daily rates are hovering around $160, and RevPAR is already past $100. Globally, RevPAR rose almost 4% in the first quarter of 2025, driven by strong performance in urban and airport properties. The demand is there. People are traveling, staying, and spending. But if you are still thinking of hotels as single-use boxes with rooms and a lobby, you are already behind. The real conversation right now is the rise of mixed-use hospitality and blended live-work-play developments. The smartest investors and brands are moving away from stand-alone hotels to multifunctional ecosystems that combine hotel rooms, branded residences, co-working spaces, retail, F&B, wellness, and even event venues under one roof. This is not a trend. This is a structural shift. Look at The Social Hub in Europe, Zoku in Amsterdam, or Radisson’s branded residences strategy. These are not just hotels. They are lifestyle hubs where guests can stay, work, meet, eat, and connect. For owners and investors, this model spreads risk, drives higher yield per square foot, and attracts a broader demographic than any traditional hotel ever could. Conversions are accelerating this shift. Underutilized office buildings and residential spaces are being transformed into hybrid hospitality spaces at scale. Marriott is pushing Project Mid in the US to convert office buildings into hotels. In China, nearly half of Hilton’s Hampton hotels are from conversions. This is where the real ROI is right now. It is faster, cheaper, and perfectly aligned with the way people live, work, and travel today. Psychology drives this success. Travelers no longer choose hotels just for a bed. They want experiences. They want flexibility. They want to feel part of something. A hotel that gives them co-working spaces, wellness programs, social interaction, and great dining without leaving the property wins every time. That is why the best-performing assets of the next decade will not be just hotels. They will be multi-functional communities designed for the way people actually live and travel now. If you are an owner, developer, or investor, ask yourself this. How are you repurposing your underperforming spaces to meet this demand? What is your plan to integrate wellness, co-working, and residential elements into your properties? Are you building for yesterday’s traveler or tomorrow’s? Because the future of hospitality is not coming. It is already here. What are your thoughts? Are you seeing opportunities for mixed-use hospitality in your markets?

Malls have shifted from busy shopping centers to multifamily housing and community spaces. Remember hanging out at the food court or scouring the shelves at your favorite mall store? Now imagine that same space as your living room. Developers are transforming shopping malls into mixed-use communities that combine housing, retail, and lifestyle amenities. With retail habits shifting and the demand for affordable housing growing, malls are becoming prime locations for creative redevelopment. By integrating apartments and homes into these spaces, developers are revitalizing underused properties and catering to a new generation of residents looking for convenience and connection. The future of real estate is about more than just where we shop- it's about where we live, work, and play. Link to the article in comments.

Real estate is becoming the backbone of long-term strategy for sports ownership groups. We’re seen it in Europe, where clubs like Real Madrid, Barcelona, and Tottenham are transforming their stadiums into year-round revenue machines to offset player wages and transfer fee volatility. In the U.S., challenger leagues like the USL are embracing the model too. Rhode Island FC, Texoma FC, and others are building soccer-specific stadiums creating diversified revenue streams through real estate, live events, and commercial partnerships. Over the past few months, I’ve had the chance to speak with several USL owners and operators (Brett M. Johnson, De Anna Guerreiro, Erik Stover). These are sophisticated builders who understand the game and the ground it sits on, structuring deals with long-term land value and diversified revenue at the core of their strategy. Now the LA Rams, led by Stan Kroenke, who also owns Arsenal, are going all in. This week, Kroenke unveiled plans for Rams Village, a $10 billion, 52-acre mixed-use development in Woodland Hills that will house the Rams’ permanent HQ and training facility, two indoor concert venues, residential units, retail, office space, parks, and a hotel. Construction could begin as early as 2027, reshaping the Valley over the next decade. Think SoFi Stadium meets Westfield Mall, but anchored in team culture. We’re watching a shift in how sports teams create enterprise value: → No longer just match day, media rights, or merch. → Now it’s land, lifestyle, and live entertainment. Klutch Sports (kudos to Andrew Feinberg and team) even released a white paper recently on this trend: The Rise of Sports-Anchored, Mixed-use Districts. Highly recommend the read. Sports is becoming a real estate play. Private credit and lending will be the next boom behind it.