Pop-Up Hotels Likely to Keep Popping Up
By Marc Stephen Shuster Partner, Berger Singerman | February 09, 2014
Co-authored by Dawn M. Meyers, Partner, Berger Singerman
Question: What do sports fans, festivalgoers, and concert devotees all have in common?
Answer: At one time or another, they have all suffered the frustrating experience of not being able to find a hotel or lodging establishment near their big event that isn't sold out or exorbitantly priced. And for those who decide to attend the given event on late notice, the cost (incurred, or worse, not being to attend) is punitive.
Not only does hotel scarcity put their ability to go to that event in jeopardy; even more importantly, on a macro level, it serves to reduce the applicable community's economic footprint that a would-be consumer would have surely produced. The dollars that each additional, discrete user brings to an event can mean the difference between success and failure. With such a routine problem, entrepreneurs in the hospitality space recognized that a fix was badly needed. The question was what type of solution would have the flexibility of being both "real-time proactive" and "real-world sufficient" to address the gap in the marketplace?
The solution might just be found in pop-up hotels. Pop-up hotels are temporary lodging establishments, which can include virtually all the components of a hotel room, including beds, furniture, showers, toilets, electricity, and WiFi, that open and operate for a finite period of time that dovetails with a given event. A number of these pop-ups are also equipped to include restaurants, retail space, and even nightclub facilities – all which can, potentially, be licensed out to other businesses looking to capitalize on the event.
So just look around. A growing trend in hospitality aims to square that disconnect of hyper-demand. From start-ups to flagships, everyone is talking about pop-up hotels.