The Denver skyline is witnessing the addition of several projects that pair office properties with boutique hotels. We spoke with developers and owners of three of these projects – Dairy Block/Maven Hotel, Union Tower West/Hotel Indigo Denver Downtown, and A Block/Hotel Born – to discover the intrinsic benefits as well as the complications these pairings add to a project.
While mixed-use projects are nothing new and the convenience of a hotel near an office property is implicit, these projects offer a fresh perspective. They are projects that host the hotel and the office on the same site and all benefit from owners/developers who view their respective properties holistically and with a long-term mindset.
In order to maximize the added value each use brings to the other, it wasn’t enough to have the projects in the same vicinity. No, instead, the energy is created by building one property that houses the two uses, which these developers are finding is difficult to replicate in a standalone of either type.
“We knew that both uses would do well on their own, but as we got further along in the planning process, we looked at the synergies between having the two buildings really interact together,” said Michael Everett, chief investment officer with Sage Hospitality, a co-owner/co-developer of The Dairy Block. “We saw an opportunity to create something that was much more integrated than just having a traditional office building next to a traditional hotel.”
At the Dairy Block, the hotel and the office lobbies are connected and designed to give the office building a more upscale, lively feel, while also drawing visitors’ eyes to the bar and restaurant located in the hotel, he said. Many of today’s office tenants are attracted to the 24/7 environment created by hotel guests visiting every night of the year as well as customers visiting the multiple restaurants and the retail that round out the mixed-use development, he said.
This speaks to a broader trend of people’s desire for reintegration. “People want to be around other people, and I think this integration of uses facilitates that,” said Dan Cohen, McWhinney senior vice president of mixed-use development, and co-owner/co-developer of the Dairy Block.