Multifamily Hotelization: Busting Myths, Supporting Realities

News| July 10, 2025| Amy Wolff Sorter

We’ve all experienced fine amenities and services connected with well-run hospitality properties. These days, those above-and-beyond services and features have been sneaking into apartment properties through a concept known as hotelization.

However, several myths surround the idea of hotelization in the multifamily sector. In response, ApartmentBuildings.com reached out to apartment experts to explore—and bust—many of those incorrect assumptions.

Myth #1—Multifamily hotelization is nothing more than a bunch of fancy amenities

Not so fast. The experts pointed out that hotelization goes beyond the swimming pools and yoga studios to encompass the intangibles like service, and how residents interact with a building and its operators.

Specifically, “Integrating health and wellness programs, embracing sustainable building practices, outdoor balconies, and versatile unit layouts for live-work flexibility are all a part of the experience,” said RDC Principal Bob Lisauskas.

Furthermore, hotelization is in place to create and maintain a desirable living experience, one that connects with residents on a deeper level.  “These are people’s homes, not hotels. So it’s about designing environments that feel good emotionally, promote connection, and support lifestyle needs,” explained Patti Higgins, Parktown Living’s Senior Vice President.

Myth #2—It’s expensive to implement a hotelization strategic plan

Yes, extra capital is needed to execute a viable hotelization approach. But it doesn’t have to break the bank.

“There are ways to implement features and services in a scaled, cost-effective manner,” Higgins said. Understanding the market, knowing the renter demographics and understanding the experience these renters want are ways to help lower hotelization expenses.

Peter Jones, project director with Project Management Advisors, suggested that using centralized staffing models, service provider partnerships, and tech-enabled platforms can also help reduce costs. And doing so can be worth the capital expense. “Over time, the benefits outweigh the costs,” Jones said. “We’ve seen these tactics drive faster lease-ups and stronger retention and also help justify premium rents.”

Myth #3—Residents don’t really care about such offerings

Actually, residents DO care. A lot.

“People today are looking for more than just four walls,” Higgins said. “They’re seeking community, convenience and experiences that make daily life easier and more enjoyable.”

As such, Higgins and Jones agreed that well-run events, on-demand services, shared workspace, community spaces, and helpful front-desk services can be the deciding factor for the potential renter interested in applying, or the in-place tenant who’s thinking about renewing.

“People want to feel like their building is more than just a place to sleep,” Jones said. “When done right, these extras become part of the lifestyle and identity of the building.”  

#4—Hotelization is just a fad; it will go away at some point

Nope.

Lisauskas explained that amenities and services aren’t fly-by-night ideas. However, they’re evolving. For example, “we have seen a trend in developing community centers, galleries, and maker spaces that bring the ‘city’ into the building,” Lisauskas observed.

Higgins agreed, adding that hotelization reflects long-term trends, rather than being a short-term craze. “People have always valued service, convenience and a sense of being cared for,” she said, adding that hotelization taps into those needs and wants.

In response, “forward-thinking multifamily owners are designing for hotelization from day one, rather than layering it on after the fact,” Johnes said. “Shared spaces and hospitality-style services aren’t just perks. They’re essential to making living feel comfortable, connected, and worth the rent.”

An earlier version of this article was published on ApartmentBuildings.com.