Following the example of early pioneers such as The Standard London opened in 2019 through the restructuring of the former Camden Town Hall by designer Shawn Hausman and interior architect Archer Humphryes, or Madame Rêve, which opened in 2021 within the landmark La Poste du Louvre building, a growing number of hotels are now being developed in buildings abandoned by office occupiers.
The drivers behind a growing interest
The Covid pandemic and the widespread adoption of remote working, now affecting more than 20% of the active workforce, initially led to a partial desertion of business districts. Changes in working patterns have reshaped lifestyles and generated new expectations, favouring more diversified, personalised accommodation solutions tailored to specific needs. At the same time, shaken by the impact of the health crisis on international travel, hotels have increasingly opened up to their neighbourhoods and embraced mixed-use models, aligning with the expectations of local authorities and districts seeking renewed momentum.
Savills notes: “The conversion of buildings into hotels contributes to the vitality of the local economy and community life by supporting surrounding shops, entertainment venues and retail outlets, and by creating a thriving urban environment. In addition, hotel operations sustain quality employment within the building itself. From an economic standpoint, hotels generate significant tax revenues for local authorities and contribute to local economic activity 24 hours a day, seven days a week, thereby strengthening the appeal of these transformations for investors and policymakers.”
More resilient than office real estate, hotel assets offer investors a reassuring recycling solution. This alternative is underpinned by strong economic performance and a close alignment with new ZAN (Net Zero Land Take) and ESG requirements. Converting offices invariably has a lower land-use and environmental impact than new construction or demolition and redevelopment.
“Transforming these office spaces by changing their use…
