#NextGenCRE, June 24, 2015 – At a recent all-hands meeting of Phillips Realty Capital, talk turned to trends in the hotel industry aimed at attracting Millennials.Fellow Millennial and Mortgage Analyst, Peter Loukas, gave a quick primer on the two leading brands with openings anticipated in D.C.– Moxy and Canopy.
Marriott’s new Moxy brand offers a hip new twist on economy travel. With smaller, more affordable rooms than traditional business-hotels, Moxy features vibrant community gathering spaces with plenty of tech amenities and 24/7 food service, giving young professionals more of what they want and less of what they don’t need.
Hilton’s Canopy brand also caters to Millennials who crave less fuss and more personality when they travel. Canopy promises a more authentic experience with lobbies, common spaces and dining that reflect each property’s local neighborhood. Canopy also aims to reduce some of the hassle of living out of a suitcase, letting guests skip the desk and check-in using their cell phones, and removing doors from closets to accommodate rolling-luggage.
Phillips Principal, Dan Shiff, added that similar trends are also playing out in new multi-family offerings. Lifestyle amenities like rooftop pools are featured centerpieces, necessities for any new property rather than add-ons. Gone are the days of elaborate and stately entryways. Instead, builders are offering coffee-house-style community gathering places, dog parks, and in-house yoga and cycling studios.
Peter noted that while it is exciting to see apartments and hotels built to suit our generation’s lifestyle, he cautions that research related to hotel market demand misses the mark if it doesn’t factor in the continued growth of services like Airbnb. Millennials have embraced the tech-enabled sharing economy and won’t pay for big brand overhead when what they really want (cool digs in a great location) is literally available at their fingertips.
— By Laurie Peltola, Business Development Manager at Phillips Realty Capital
#NextGenCRE is an occasional blog by some of the younger analysts at Phillips Realty Capital.
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