With the Government giving the green light for the hospitality sector in England to open up on 4 July, hotel operators are likely to be faced with subdued short-term demand of existing accommodtion, especially in city locations. 

There are, however, opportunities for the industry to capitalise on the layout and location of hotels and provide alternative workspace for individuals, or for companies, where the capacity of their offices has been so depleted by social distancing regulations.

With a significant proportion of London’s workforce commuting from the home counties and sometimes further afield, demand may be more prevalent within the typically more residential commuter towns. Furthermore, cities where a significant proportion of the workforce drive to work may also experience stronger take-up.   

In the US, a number of hoteliers have tried to provide a solution by offering their bedrooms as short-term office accommodation during the day. For those who struggle with poor Wi-Fi connection at home, or the distractions of a multi-generational household, hotels easily lend themselves well to an intermediary solution between working from home and returning to an open office environment

Hotels typically benefit from high-speed Wi-Fi connectivity and a desk set up which is likely to be on parallel with most offices. 

Operators such as Achat Hotels in Germany, which runs more than 30 hotels, has also seen good demand for use of rooms as office accommodation.  This has tended to be in the large cities like Munich, Stuttgart and Frankfurt, where residential prices are higher and people are less likely to have home offices or a suitable environment from which to work at home. 

What is apparent is that hotels will continue to adapt to the challenging conditions that we are currently facing, offering an essential service to their loyal customer base and helping to preserve employment for those in the hospitality industry.

Further information

Read more: Covid-19: Savills UK & European hotel insights Vol 7