When talking about hotel investments, one thing is certain – everybody is looking for that little secret that will bring balance between revenue and operations, creating a truly successful business with both joy and profits. Many words may come to mind, such as strategy, economy of scale, or good management, but only a few truly point to one answer: Hotel Concept.
The reason is that most people connect the idea of a concept with something theoretical, while only a few realize that it is much more — in fact, the very foundation of the entire investment strategy. It influences every decision, from the hotel typology and operational aesthetics to the overall guest experience and financial success.
And when it comes to hotel concepts, the same questions always arise: What is a concept? When should it be developed? And who is responsible for it? These questions may seem obvious to some, but the answers can be truly surprising — especially when reflecting on the experience of developing more than 140 hotel investment concepts over the past 10 years.
Table of Contents
Key Takeaways
Navigate between overview and detailed analysisKey Takeaways
- A hotel concept is not just design or aesthetics — it is the strategic foundation of the entire investment, guiding architecture, operations, branding, gastronomy, and financial planning.
- Concept development must start at the beginning, shaping typology, direction (wellness, gastronomy, lifestyle, etc.), and narrative to ensure consistency and profitability.
- A hotel concept leader is essential to connect strategy, architecture, operations, and guest experience, ensuring decisions are aligned and the investment vision is preserved.
- Strong concepts reduce operational risks (like staffing shortages) by providing clarity, structure, and efficiency across all departments.
- The industry lacks dedicated hotel concept specialists, and expanding this expertise would elevate hospitality projects globally.
The Five Ws Analysis
- Who:
- Investors, architects, branding experts, F&B teams, and operators — coordinated by a dedicated hotel concept leader or specialist.
- What:
- A hotel concept is a strategic framework that defines the identity, positioning, operations, and guest experience of a hospitality investment.
- When:
- From the very beginning of development — starting with typology decisions, then shaping narrative, design, and operations step by step.
- Where:
- Everywhere in the investment process — from the architectural plan and space alignment to gastronomy, branding, and revenue strategy.
- Why:
- Because a strong, clearly defined hotel concept balances revenue with operations, reduces risk, accelerates decision-making, and transforms a property into a sustainable, profitable asset.
The Real Explanation of a Hotel Concept and Its Role in Investment Success
Let’s start with a statement: a hotel concept is not about aesthetics — it is about wholeness. To make this more specific, let’s examine an example we developed with Destsetters.
Having a plot in the historic center of Athens, we had to decide what kind of hotel to develop. After analyzing the investor’s profile along with the destination’s demand and competition, we came up with the idea of creating the first City Design Retreat — a hotel that would combine both urban lifestyle and wellbeing.
But spaces in a city hotel are always limited, so we had to think smart. We decided to create a narrative connecting the role of Art in Ancient Athens and its impact on Athenian wellbeing with the way modern Athenians relate to art today.
This allowed us to speak not only about facilities but about a more mindful retreat experience, elevated through artful design.
The result was a concept for a Design City Retreat inspired by the arts of Ancient Athens, making a place where “Athens’ Spirit Revives.” That meant a more classical architectural approach (e.g., neoclassical revival), artful design references (e.g., to distinct Athenian periods), healthier local gastronomy (e.g., light delicatessen), and a more mindful wellness philosophy (e.g., spaces for meditation). In other words, both the building and the operation had to follow the main idea — not the other way around.
This brings us to the definition: a hotel concept is the strategic idea that is not only a story but also the reference point for all decisions — from architecture, spatial alignment, and design choices, to operational mentality, menu direction, branding colors, positioning channels, and revenue potential.
Making the Hotel Concept the Reference Point for All Key Decisions
Now that the meaning of a concept is clearer, it becomes obvious: the concept is the first thing an investor should define before any other decision.
But you may wonder: How can I decide something so specific when I have only a plot or a building for renovation?
Hotel concept development is a structured process with stages that gradually lead to the final direction. The initial stage is typology definition: what kind of hotel (star rating), the room mix, the common-use spaces, the service logic, and other structural decisions. This is a long process, so it deserves its own analysis elsewhere.
Once a draft typology is shaped, the next step is to define the direction: will it be a wellness-led hotel or a gastro-led one? Each path enriches the typology with different characteristics. In wellness, you need wellbeing facilities (e.g., a hammam cabin), while in gastro you need upgraded minibars and stronger F&B experiences. This direction sets the frame for all following choices.
Finally, a structured brainstorming on the narrative — the story that will inspire the design and define the guest experience — brings clarity. At this stage, the product starts to take shape strategically, making its potential measurable and realistic.
So the answer about when the concept should be defined is clear: from the very beginning, in stages, step by step, with a strategic lens.
Building a Team that Connects Strategy, Architecture, and Experience
Here comes the question of responsibility. Almost every professional involved uses the word “concept”: the architect talks about a design concept, the chef about a menu concept, the branding expert about a brand concept. But who is truly responsible?
The truth is that a hotel concept is not an individual matter. It is the result of a team effort, but for it to work, the team must have a clear direction and someone to connect the dots between strategy, architecture, and experience.
In practice, the most successful hotel projects are those where a dedicated concept leader is in place. This is often an external advisor or a specialized company with a holistic view of the investment.
Their role is not to replace the architect, the chef, or the brand strategist, but to hold the master narrative and ensure that every decision — from the alignment of spaces and the choice of materials to the menu design and the revenue model — is filtered through the concept’s lens.
For example, a decision about reducing the spa footprint is not just architectural; it has implications for the wellness positioning, guest perception, staffing requirements, and revenue streams. Without a unifying leader, such decisions become fragmented and the original vision weakens.
At the same time, the leader must create a framework where every professional contributes to the concept in their own language. The architect translates the narrative into space, the operations manager evaluates feasibility, the branding team communicates the story to the market, and the F&B team expresses it through flavors and rituals.
The leader connects these parts, sets the guardrails, and ensures that compromises serve the concept rather than distort it. This is how a hotel concept becomes not a slogan or a vague idea, but the operating system of the project — a structure that organizes creativity, keeps investment goals intact, and ensures that the final result is both inspiring and profitable.
The Need for More Dedicated Hotel Concept Development Specialists
Even if it does not serve my personal benefit to admit it — as Destsetters is one of the few, if not the only, brands 100% dedicated to hotel concept development — there is an urgent need for more professionals and companies focusing exclusively on this field.
The industry would benefit from more players who approach hotel investment holistically and strategically, ensuring that new projects are not just buildings but successful businesses with longevity.
In fact, at a time when staffing has become one of the biggest challenges in hospitality, a well-specified and structured hotel concept minimizes operational issues. The clearer and more strategic the concept, the easier it is for a team to execute, and the less impact staff shortages will have on the overall operation.
Ultimately, the key takeaway is that a hotel concept is not a decorative addition to a project but the invisible structure that drives success on every level. It strengthens the financial plan, accelerates design choices, creates operational clarity, and defines the market position of the hotel.
When treated with the right seriousness and expertise, the concept becomes the single most important driver that transforms an investment into a living, profitable, and sustainable hospitality asset.
Questions & Answers
What is a hotel concept?
A hotel concept is not about aesthetics or decoration. It is the strategic idea that becomes the reference point for all decisions — from architecture and design to operations, gastronomy, branding, and revenue.
When should the concept be developed?
From the very beginning. The concept must guide every stage of development — starting with typology definition and moving step by step toward direction, narrative, and experience. If it comes later, decisions are fragmented and harder to align.
Who is responsible for the concept?
The concept is the result of a team effort, but it always requires a leader. This leader connects strategy, architecture, operations, and guest experience, ensuring that every decision aligns with the core vision and investment goals.
Why is the concept so critical for investors?
Because it balances revenue and operations. A well-structured concept reduces uncertainty, accelerates decisions, strengthens positioning, and ensures the hotel becomes a sustainable business rather than just a building with rooms.
What is the industry’s biggest gap in concept development?
There are very few professionals and companies specializing in hotel concept development. More dedicated experts are needed, because a rigorous concept elevates the entire industry — improving financial returns, guest experiences, and even solving operational challenges like staffing.
