Asmita Mukherjee | Hyderabad
There was a time when hotels were simply one element within a mixed-use development, sitting alongside retail, offices and residences. Today, that equation is changing rapidly. Hospitality is no longer an add-on. It is becoming the force that shapes how these developments are planned, how people interact with them and ultimately how they perform financially.
Across India’s urban centres, developers are rethinking the role of hotels, restaurants, wellness spaces and entertainment. Rather than creating places people visit for a single purpose, they are building destinations where work, leisure, shopping and social experiences blend seamlessly. In Hyderabad, Mindspace Business Parks REIT is developing a 330-key luxury hotel alongside a 5.3 lakh sq ft commercial tower at its Madhapur campus. The INR 350 crore project, to be managed by Chalet Hotels, reflects the growing trend of integrating hospitality with commercial real estate to boost asset value and create sustained demand. Bengaluru’s Embassy TechVillage has incorporated a Hilton Garden Inn as part of its larger mixed-use ecosystem, while Mumbai’s Three Sixty West combines luxury residences with the Four Seasons Hotel. At VR Bengaluru, The Waverly Hotel complements retail and lifestyle offerings, creating a destination that attracts visitors beyond shopping hours. Omaxe, meanwhile, has announced plans to invest INR 6,200 crore in developing 19 mixed-use hotels across religious destinations and transport corridors, signalling growing confidence in hospitality-led developments.
The strategy is rooted in changing consumer behaviour. People today are looking for places where they can work, meet, dine, unwind and stay within a single ecosystem rather than travelling between disconnected destinations. Developers and hotel operators say this shift is creating stronger footfalls, longer visitor engagement and more resilient revenue streams while making mixed-use developments commercially stronger in the long run.
Experience Economy
The rise of the experience economy has fundamentally changed how mixed-use projects are designed. Industry studies suggest that experiential retail and entertainment can increase visitor dwell time by as much as 40%, creating greater opportunities for spending across food, retail and leisure.
Mohit Goel, Managing Director, Omaxe Ltd., believes hospitality has expanded far beyond the traditional hotel model. “Experiential dining, entertainment zones and lifestyle-led formats increase average dwell time, improve repeat visits and create year-round engagement within a development. This directly strengthens retail performance, leasing demand and overall asset value,” he said.
Developers are responding by creating destinations that remain active well beyond office hours or weekend shopping peaks. Sports arenas, curated food streets, wellness facilities and live entertainment are becoming integral parts of new developments rather than optional additions.
Amrita Gupta, Director, Manglam Group, says hospitality has become the activity generator that keeps mixed-use projects vibrant. “Hotels, restaurants, wellness centres and entertainment venues create reasons for people to visit beyond shopping or work. This increases footfalls, extends dwell time and supports stronger performance across retail, commercial and leisure components,” she explained.
The emphasis has shifted from attracting one-time visitors to creating places that become part of people’s everyday lives.
Shared Ecosystems
One of the biggest strengths of mixed-use developments lies in the way different asset classes support one another.
Hotels benefit from a diverse customer base that includes office employees, residents, shoppers, event attendees and business travellers. Restaurants attract not only hotel guests but also the surrounding community, while retail outlets enjoy consistent foot traffic generated throughout the day. For developers, this creates a far more resilient business model than relying on a single asset class.
Gaurav Singh, Chief Operating Officer, Chalet Hotels Limited, said integrated developments allow hospitality businesses to tap into multiple demand drivers simultaneously. “Hotels gain access to a ready consumer base comprising office occupiers, business travellers, residents, leisure guests and event attendees, while destination dining and F&B outlets enjoy consistent patronage beyond in-house guests,” he added.
Chalet Hotels has built several projects around this philosophy. The company’s JW Marriott Mumbai Sahar complements The Orb, its adjoining commercial office development, while Four Points by Sheraton Navi Mumbai benefits from its integration with Inorbit Mall. Likewise, The Westin Mumbai Powai Lake draws food and beverage demand not only from hotel guests but also from the surrounding office population, creating a steady business throughout the week.
Changing Expectations
The changing role of hospitality also reflects evolving consumer aspirations. People are no longer visiting hotels only to stay overnight. Hotels have become places where they meet colleagues, celebrate family occasions, dine with friends, attend events or simply spend time. This broader role is transforming mixed-use developments into social and cultural hubs rather than conventional commercial projects.
Developments such as The Omaxe State in Dwarka illustrate this shift by combining sports, entertainment and hospitality to create activity throughout the day.
Singh believes hospitality is increasingly becoming the element that gives a destination its identity. “Hotels today support much more than accommodation. They anchor business travel, destination dining, meetings and events, weddings, wellness experiences and community engagement. Together, these elements help create destinations that remain active throughout the day while attracting a diverse mix of consumers,” he said.
The emphasis is now on creating experiences that encourage visitors to engage with the destination instead of simply passing through it.
Stronger Partnerships
As hospitality becomes central to mixed-use planning, collaboration between developers and hotel operators is also evolving.
Rather than bringing hospitality brands into a completed project, developers are involving them much earlier in the planning process. This allows hotels, restaurants, public spaces and entertainment venues to be designed as part of one integrated experience. Gupta said partnerships with established hotel brands create benefits for both sides. “Our collaborations with brands such as The Fern Hotels and Resorts and The Westin Jaipur Resort and Spa demonstrate how strong hospitality partners can enhance the overall appeal of a destination. This helps attract visitors, increase dwell time and create value across retail, dining and leisure offerings,” she added.
Marloes Knippenberg, Chief Executive Officer, Kerten Hospitality, believes successful developments begin with a shared vision rather than a simple commercial arrangement. “It needs to begin with a shared vision for the destination, the community and the audience it is intended to serve. Every component, from hotels and residences to dining, wellness and cultural experiences, should work together to tell one coherent story,” she said.
She believes hospitality brings an emotional dimension to developments that traditional real estate alone cannot create, making destinations more memorable and commercially sustainable over the long term.
Investment Case
The business case for hospitality-led developments is becoming increasingly compelling. Hotels contribute much more than room revenue. They generate income through restaurants, meetings, weddings, wellness services and events while simultaneously increasing the value of neighbouring retail and commercial assets. This diversification strengthens project economics and creates recurring revenue streams. Goel said, “Hospitality-led components improve both recurring revenues and long-term asset value. Hotels, F&B zones and entertainment infrastructure generate regular cash flows while also increasing the attractiveness of surrounding retail and commercial spaces, allowing developers to command better leasing terms and stronger capital values.”
Investment advisors also see mixed-use developments emerging as the most influential business model for the hospitality sector. Manav Thadani, Managing Director, Hotelivate Savills, said, “Each of these models has merit, but if I had to identify the one with the most transformative potential, it is mixed-use development. When hospitality is integrated thoughtfully into a larger ecosystem with retail, residences, offices and wellness, it creates a consumer base that standalone hotels simply cannot replicate. It also improves asset economics and reduces dependence on any single revenue stream.”
While branded residences continue to witness strong demand, particularly in the luxury segment, Thadani believes their success depends heavily on brand strength and execution. Asset light models, meanwhile, will continue to attract operators and investors looking for capital-efficient growth, while consolidation through mergers and acquisitions is expected to shape the competitive landscape.
Chalet Hotels has embraced a diversified approach by balancing hospitality with commercial real estate. The company currently operates 11 hotels with more than 3,389 keys while continuing to expand its commercial portfolio, creating resilient cash flows across market cycles.
Knippenberg describes hospitality as a multiplier for integrated developments. “For developers, hospitality creates a multiplier effect. It increases footfall, extends dwell time, enhances the attractiveness of retail and residential components, and ultimately contributes to stronger asset values and long-term monetisation opportunities,” she said.
Future Outlook
As India’s cities continue to expand, hospitality is set to play a defining role in the next generation of mixed-use developments.
Developers are increasingly competing not just on location or scale, but on the quality of experiences they can create. Hotels, destination dining, entertainment, wellness and cultural programming are becoming essential ingredients for projects that want to remain relevant in an increasingly experience-driven economy.
The next generation of successful developments will not simply be places where people shop, work or stay. They will be destinations where people choose to spend their time, build connections and create lasting memories. In that journey, hospitality is proving to be far more than an amenity. It is becoming the foundation on which India’s future urban destinations are being built.
