Unlocking Hidden Value Through Creative Asset Management in Hospitality

Consider a hotel’s unused spaces as opportunities to reach guests in new ways

In today’s hospitality landscape, asset managers face a triple squeeze: rising construction costs, escalating labor expenses and flattening ADRs.

At the same time, hotel guests demand more personalized, differentiated experiences. In this climate, underutilized spaces — breakfast rooms, lobbies, parking lots — aren’t just dead weight. They’re latent assets waiting to be activated.

The hidden cost of idle space

Unused areas often drain resources through utilities, maintenance and missed opportunity. Instead of chasing external revenue streams, hotel asset managers can turn inward and ask: What if this space could do more?

1. Transform dead zones into retail gold

Case in point: A hotel converted a dull, street-level corner into a UPS Store. The tenant paid utilities, eliminated the hotel’s printing burden and brought in local foot traffic. As a bonus, UPS began hosting meetings at the hotel, boosting food and beverage and room revenue.

Other ideas:

• Lease space to boutique fitness brands (e.g., yoga or spin studios).
• Host local artisans or pop-up galleries in unused corridors.

According to Forbes Hospitality Council, monetizing ancillary spaces is a key strategy for offsetting inflationary pressures.

2. Flex spaces for pop-up events

Hotels near stadiums, airports or convention centers can capitalize on event surges.

Example: A Courtyard by Marriott reimagined its breakfast room as a midday co-working hub. With minimal setup, it offered hourly rentals to traveling professionals.

Event-driven retail: During game weekends, lobbies became pop-up fan shops selling team merchandise, some generating $30,000+ in just three days.

3. Monetize outdoor or ‘unbuildable’ land

Odd-shaped or small parcels often sit idle. But with creativity, they can become income streams.

Here are several ideas:

• Install digital billboards or LED screens for local advertising.
• Host seasonal food trucks or weekend farmers markets.
• Partner with municipalities for community events or art installations.

CBRE’s Global Hotel Asset Management team emphasizes leveraging overlooked assets to improve cash flow and valuation.

4. Intangible assets: Naming rights and brand alignment

A hotel near a university offered naming rights to its ballroom in exchange for a donation. The result? Prestige, visibility and stronger ties with institutional clients.

Other possibilities include:

• Sponsor local school events or scholarships in exchange for brand placement.
• Collaborate with nonprofits for cause-driven campaigns that resonate with guests.

Keys to unlocking value

• Audit spaces: Identify areas with high cost and low usage.
• Think beyond hospitality: Explore partnerships with retail, education and civic organizations.
• Create dual value: Enhance guest experience and generate revenue.

Final thought

Innovation in hotel asset management isn’t about grand reinvention. It’s about seeing the ordinary with extraordinary vision. The most impactful asset managers aren’t just stewards of space; they’re architects of possibility.

This article originally appeared on Horwath HTL.