In a constantly changing world, the entertainment real estate sector is undergoing a powerful revolution. Shifting consumer demands, along with the desire for flexible spaces that combine multiple asset types, have driven the strong emergence and development of the multifunctional (mixed-use) real estate model. This is not just a trend but also an optimal solution for the future.

Source: Sofitel Legend Metropole Hanoi Project implemented by TTT

Multifunctional Hotels: Where Flexibility is Key

The era where functions like hotels, co-working spaces, residential areas, and retail operated in isolation is gradually fading. Now, they are merging, creating dynamic, multifunctional environments.

According to industry experts, "We are seeing more and more mixed-use spaces. The past few years have clearly illustrated the need for flexibility." Experts also point out that combining hotel services with other real estate uses helps protect the value and longevity of the asset.

Building a Complete Experiential Ecosystem

The fusion of traditional hotels with models such as branded residences, co-living, and co-working is booming. Pioneering developers and operators like Finamas, CEPAC, Rockbridge, Edwards (with the Merchant Building project), Zoku, and The Social Hub are leading the way. They are not just building places to sleep or work, but a comprehensive ecosystem that meets all the needs of modern consumers – those who are always on the go, flexible, and value experiences.

A senior representative from a major hotel group shared: "Today's travelers are not just looking for accommodation but also a complete experience. They want to be active, to be able to stay at the hotel, visit museums, see concerts, and dine at multiple restaurants within the same complex without having to leave."

Typical examples of this trend are large projects in gateway cities and stadium complexes. They integrate hotels, residential areas, retail, F&B, and entertainment, creating entertainment destinations that attract a large number of visitors. The Ruby Hotel in Stuttgart and The Post in Rotterdam are vivid examples of successfully combining hotels with retail spaces, offering diversity and appeal.

To realize these spaces, the role of professional interior partners is crucial. Companies like TTT Interior provide versatile interior solutions, from multifunctional hotel interior design to comprehensive interior solutions for complex projects, ensuring that each space is optimized for functionality and aesthetics, while meeting the highest premium standards.

Cash Flowing into Multifunctional Real Estate

Notably, there's a shift in the mindset of institutional investors. Previously, they often hesitated with multifunctional projects due to difficulties in risk allocation. However, some industry experts affirm that as investment portfolios grow larger and the demand for flexible, multi-purpose spaces increases, investors are becoming more familiar with mixed-use real estate.

"The consulting community is becoming more aware and capable of evaluating these types of projects. There's more evidence and data to support that analysis and appraisal," he stated.

The availability of data and real-world evidence is helping banks, brands, developers, and operators become more confident in the potential of this model. An industry expert also emphasized that large-scale projects, especially those associated with stadiums, are becoming extremely attractive to long-term investors. The reason is the inseparable nature of the components within the complex, requiring all to succeed for the destination to develop sustainably.

A core benefit of multifunctional spaces is the ability to flexibly switch purposes, from short-term to long-term stays, from co-working spaces to entertainment amenities like gyms and cinemas. This not only meets market demand but also enhances profitability and ensures the future of the investment. As a provider of interiors for hotels and multifunctional spaces, TTT contributes to creating flexible and efficient spaces, helping maximize value for investors.

Source: L7 West Lake Hanoi Project implemented by TTT

Challenges and Opportunities Ahead

However, the multifunctional model also poses challenges, especially in operational management. Operators must have sufficient expertise to manage a variety of different functions within the same asset, requiring cooperation with specialized local or international experts.

According to an industry expert, these projects are not just about leveraging current trends but also future-proofing investments in a volatile market. "If you have more space in your property that you can flex to market dynamics and changing customer demand, that's certainly going to protect your investment."

Although costs and capital expenditures are barriers, the risk of a property being specialized for only one purpose is even greater, potentially limiting its value and liquidity. Clearly, this is an exciting opportunity for the hotel industry, especially in integrating new amenities and services, expanding the traditional scope of hotel operators.