Mixed-use balances home with hospitality

by Nellie Day   May 1, 2025

Many businesses and brands strive to become all things to all people. In today’s post-pandemic world, they almost have to. This has penetrated the commercial real estate industry as well. 

The Urban Land Institute notes that mixed-use projects are forecasted to grow 12 percent annually through 2030.

All components of a mixed-use concept—whether that be multifamily, office, retail/restaurant, hotel or any combination thereof—must work in unison while maintaining their own unique identity and operational efficiencies for these developments to be successful.

“Mixed-use developments have become popular because they match what today’s travelers and residents want,” said Jason Reader, COO of Remington Hospitality. “Guests look for hotel stays that feel more like home, while residents enjoy having hotel-style services at their doorstep. This mix allows hotels to grow their business while offering a more convenient, community-focused experience.”

Designed by Frank Gehry, the Grand LA’s 28-story, 305-room hotel and 45-story, 436-unit apartments have both supported Downtown LA’s tourism industry and added much-needed residential inventory when they opened in spring 2023.

A hotel can certainly thrive as part of a new mixed-use development that revitalizes an area or maximizes an underutilized space…as long as it’s the right fit.

“Choosing the right hotel brand for a mixed-use development depends on how well the brand fits with the location and its audience,” Reader added. “Hotels that offer strong amenities, seamless operations and appeal to both visitors and residents tend to do best.”

Reader believes mixed-use developments work best in one of three places: destination cities, tourist hubs or growing suburban areas.

The value of a mixed-use setting ultimately depends on how well a hotel operates within the larger ecosystem. The difference between a profit multiplier and a costly misstep often comes down to what the hotel contributes to the larger project, as well as how effectively it engages both guests and locals. For hospitality leaders, success in mixed-use isn’t about simply fitting in. It’s about standing out in a way that elevates the entire destination.