The Hospitality Mindset: Unlocking Value in Mixed-Use Development
How thinking like a hotelier transforms residential outcomes in complex precincts
There’s a moment in every mixed-use development when the team realises the residential component isn’t just another building, it’s the soul of the entire precinct.
Over two decades working across $20 billion in hospitality and mixed-use projects, from Hotel Chadstone in Chadstone shopping centre to Queen’s Wharf Brisbane, and Star Gold Coast Masterplan, I’ve witnessed how the residential strategy can elevate or undermine everything else. The difference? Approaching it with a hospitality-led mindset from day one.
Buranda Brisbane's build-to-rent projects exemplify a progressive approach to residential amenity, allocating an impressive 6m² per apartment. This ratio aligns with luxury hotel standards, underscoring a commitment to elevated lifestyle experiences within the residential sector. The extensive amenity offering not only enhances resident well-being but also redefines expectations for build-to-rent developments in urban environments.
Beyond Boxes: Why Residential Demands More
In today's market, residential buyers and renters aren't just purchasing square meters. They're investing in a lifestyle promise that must deliver daily, especially in the booming Build-to-Rent (BTR) sector, where hospitality-led thinking is becoming essential. When we developed masterplans like Buranda Brisbane and explored residential integration at Chadstone, the residential component wasn't an afterthought; it was the bridge that connected retail energy with hospitality service, creating precincts where each use amplified the others.
The challenge isn't design complexity. It's understanding that residential sets the emotional tone for how people experience your entire development. Get it wrong, and no amount of premium retail or five-star hospitality can compensate.
The Hospitality Lens: A Different Way of Seeing
Working with brands like Ritz-Carlton, Rosewood, and MGallery taught me something fundamental: hoteliers obsess over the guest journey because they know every touchpoint matters. This thinking transforms residential development:
Why hospitality-led thinking matters outside hospitality:
At Chadstone, we transformed a utilitarian parking experience into a valet porte-cochère arrival. White-glove concierge service replaced parking anxiety. The result? Luxury retailers saw increased spend per visit, and what was once a pain point became a brand differentiator.
This is hospitality-led thinking: understanding that every space tells a story, every transition creates emotion, and every interaction is an opportunity to elevate experience; whether it's a hotel, retail centre, or residential tower.
The mindset shift transforms everything:
As well as asking: "How many units can we fit?"
We ask: “What’s the purpose and demographic of someone living here, and their needs?
Instead of: "Where do we place the amenities?"
We consider: “How does someone decompress after work in this space? What can we do to co-locate experiences?”
Instead of: "What's the minimum lobby size?"
We explore: “What emotional transition happens when you come home? How can we overlap uses for embedded value?”
Instead of: "Standard Pool + token spa"
We create: "we craft wellness sanctuaries that embody a sense of place, designed to create environments that foster both social and physical well-being." (Wellness doesn't mean expensive)
These aren't abstract questions. They're commercial drivers that influence everything from pre-sales velocity to long-term asset valuations. When people feel welcomed, valued, and understood, they stay longer, spend more, and return often.
Early Decisions, Lasting Impact
The most valuable insights often emerge from walking a site at different times of day with the development team. During the Chadstone Masterplan feasibility studies, we discovered that understanding seasonal sun patterns and prevailing winds wasn’t just about comfort—it unlocked an additional floor of apartments with protected winter terraces, significantly enhancing yield.
This is where collaboration becomes crucial. By bringing together:
Development managers who understand the numbers
Operators who know service delivery
Local authorities who shape approval pathways
Future retailers who need active frontages
We create a shared vision that’s both aspirational and achievable. It’s not about compromise—it’s about finding where interests align to create mutual value.
The Integration Imperative
Mixed-use success depends on seamless integration, not just adjacency. Through projects across Australia and internationally, patterns emerge:
Successful precincts create natural flow between residential, retail, and hospitality. Residents become your best retail customers. Hotel guests discover reasons to extend their stay. Each use amplifies the others.
Failed precincts treat each component as isolated profit centers. The residential feels disconnected. The retail lacks energy. The hotel seems out of place.
The difference? Whether someone championed integration from the masterplanning stage through to operations handover.
From Vision to Value
Real value creation happens when design excellence meets development discipline. This means:
1. Stakeholder Alignment Early
Bringing key voices together before lines are drawn prevents costly revisions. When developing resort masterplans, I've seen how early operator input can shift layouts to enhance both guest experience and operational efficiency—often improving NOI projections by double digits.
2. Design That Delivers
Beautiful renders mean nothing if they don't translate to buildable, operable, maintainable spaces. Every design decision should answer: How does this enhance the user experience while supporting our investment case?
3. Risk Through Opportunity
The biggest risk in mixed-use isn't construction delays or cost overruns—it's creating something forgettable. By maintaining focus on experience-driven outcomes, we transform development risk into market differentiation.
The Collaboration Advantage
None of this happens in isolation. The most successful projects I've been part of shared one trait: genuine collaboration between all parties. Not just coordination meetings, but real working sessions where:
Architects challenge operators on service concepts
Developers push designers on value engineering without compromising vision
Authorities become partners in creating exceptional places
Everyone owns the outcome
This isn't about being nice—it's about recognizing that complex developments require collective intelligence to succeed.
Looking Forward: The New Residential Reality
Post-pandemic buyers have fundamentally different expectations. They’ve worked from home, valued their neighbourhoods differently, and reconsidered what “home” means. For mixed-use developments, this creates unprecedented opportunity:
Residential amenity can blur with hotel facilities, creating unique value propositions
Retail relationships can be reimagined through exclusive access or integrated services
Workplace integration can transform how we design unit layouts and shared spaces
Sustainability becomes a lived experience, not just a certification
The developers who recognise this shift—and structure their teams to capitalise on it—will define the next generation of successful precincts.
A Personal Reflection
After years of presenting to boards, securing planning approvals, and delivering complex projects, what excites me most is still that moment when a resident first walks into their home, a hotel guest discovers an unexpected delight, or a retailer sees foot traffic exceed projections.
These moments don’t happen by accident. They’re the result of thinking like a hotelier about every decision, collaborating deeply with all stakeholders, and never forgetting that we’re creating places for people, not just returns for investors.
Though ironically, when you get the first part right, the second tends to follow.
Shannon Cloete is a Design Director specializing in hospitality and mixed-use development. With experience across $20B+ in landmark projects throughout Australia, Asia, and the Middle East, he partners with developers and operators to create destinations that deliver both exceptional experiences and strong investment returns.*
Connect on LinkedIn or explore more insights at [www.shannoncloete.com](https://www.shannoncloete.com)
