Ascertaining the 'highest and best' use of available land and/or permissible built-up area is a key enabler for an acceptable return on investment. Various factors, including (but not limited to) the prevailing real estate cost of land, local zoning regulations, demand-supply dynamics as well as the owner/developer’s aspirations are influencers in ascertaining what should be built on available land.
Several markets across the globe have been witness to mixed-use developments in recent years. With an eye to enhance overall viability of a project comprising components that could otherwise be prohibitive to develop individually, the developer is able to maximize returns. Mitigating development as well as salability risk by way of spreading it across dissimilar asset types with differing gestation periods and revenue models, a mixed-use development, if well planned, can also help achieve economies of scale. Conversely, if poorly planned or executed, mixed-use developments can be legally challenging and may dilute profits if components are either identified or developed incorrectly.
Over the years, HVS has consulted on hundreds of hospitality-anchored mixed-use projects involving a key hospitality component in conjunction with branded residences, shared ownership, retail, office, clubhouse, golf course, skiing, gaming, convention center and other asset types.
Unlike our competitors, we have unparalleled in-house expertise on a variety of these asset classes, which is pivotal in helping you make the right decisions when it comes to site selection, space utilization, financing options, branding strategies and collaborating with interdisciplinary experts.
The experience and qualifications of our experts enable us to render a variety of consulting services to developers, owners, lenders and investors to make this concept, which is gaining traction worldwide, an economically feasible opportunity. Local governments across nations have also tapped into our expertise on a regular basis for recommendations on mixed-use projects that have been eventually implemented successfully. In addition, we also guide you with existing projects to help you enhance the value of your mixed-use development by focussing on the synergies and financial capabilities of each of the different components that are at the heart of value creation.
How We Help Our Clients
- Perform highest and best use analysis of the site
- Provide access to the latest trends relevant to the various potential components of a mixed-use development in virtually every major hotel market in the world
- Perform comprehensive research to support financial projections in our market and feasibility studies for all components in a mixed-use development
- Prepare narrative reports including a full feasibility analysis of the mixed-use project
- Perform an appraisal of the entire project to facilitate investment and lending
- Conduct operator search and contract negotiations for hospitality-driven components of the project
- Offer strategic consulting and advisory on a variety of related aspects