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Amenities will no longer be an afterthought, according to hospitality experts at The Urban Developer’s Urbanity 2024 conference on the Gold Coast this week.
“Going forward, it’s the sizzle that sells the steak,” said Fitness First founder Tony de Leede.
The sentiments of the owner of the Gwinganna eco-resort [pictured above] and hospitality entrepreneur were repeated by fellow panellist and founder of Australian venue business Lucas Group, Chris Lucas.
“People are making more and more of their decisions based on the amenity, and in 10 years, it will be the first thing they decide on,” he said.
And this desire to perfect the spaces in which amenities are situated prompted Lucas Group to move into the property development space.
“Out of necessity we started getting more involved on the property side, because we wanted to make sure we are getting the correct outcomes and that caused us to get involved in design [and] concept development, originally helping developers with their vision.
“It’s certainly happening in the Europe and North American markets, where amenity, restaurants, wellness centres, these things are changing the face of development today.
“[That’s because] people are making more and more of their decisions on whether they choose to work in a particular building or buy into a particular development based on the amenity.”
But rethinking amenity in development will take a major philosophical change.
“The old way of doing business, [for example] someone builds a building and then rings up the local real estate agent and says I need to fill this retail space for X amount of dollars per square metre, that model is pretty much defunct,” Lucas said.
It also means we need to take a more thoughtful look at the end user.
“People spend a lot on plans and waterfalls and beautiful aesthetic things… but you [also need] meaningful amenities,” Tony de Leede said.
End-of-trip facilities, for instance, were not always fit for purpose, he said.
“End-of-trip was primarily driven for cyclists, and cyclists make up 5-10 per cent of the population. You still need to cater to the 10 to 20 per cent that are into fitness generally because they are very loud.
“So end-of-trip facilities are now mandated. Smart operators are figuring out how to turn this into a fitness and wellness centre. They are looking at how you put those lifestyle amenities into our developments.”
Chris Lucas agreed.
“If you talk about end-of-trip facilities, many are sitting empty and they take up a lot of real estate.
“But if you put three or four restaurants in there, once you’ve modernised the wellness concept, these are the things that people want and want to be engaged with.”
Fellow panellist Avalon Nethery takes a similar approach to a different end, providing amenities for underrepresented demographics in the form of hotel brand Borne, aimed at postpartum mothers.
“For those whose work and life are blended, [it’s easy to see] that the way commercial models are working aren’t family-led.
“It’s OK for anyone in any development just to throw a sauna and ice bath and a couple of features into an end-of-trip facility but I think we’ve got to look at buildings and go … how do we activate these places and spaces?”
