For hotel owners and operators, adaptive reuse can offer an opportunity to expand a property’s footprint, unlock the potential of underutilized buildings, and create a differentiated guest experience without starting from the ground up. But the benefits extend beyond simply repurposing an existing structure; the unique characteristics of these buildings can become a defining part of the hotel’s identity. Drey Hotel, located within The Village Dallas in Texas, is putting this approach into practice. This October, the hotel will expand with the opening of Terraces at The Drey, a collection of accommodations and open-air spaces created through the adaptive reuse of an existing office building. The project demonstrates how adaptive reuse can turn existing structures into opportunities for greater room inventory, more memorable guest experiences, and a unique hospitality product.
The Village Dallas was a fitting location for adaptive reuse, as the property spans over 300 acres. Gabriella Monte, vice president, hotel & retail operations at The Village Dallas, explained that Drey Hotel’s successful performance drove the team to seek expansion. “We were doing so well, and we were just limited by the size,” she said, noting that the office building across from the hotel was the “perfect location, given its proximity.” Adapting the space into a hospitality destination was completed in multiple stages. The second floor of the building had previously been used as office space, but the third and fourth floors were essentially shells, allowing the hotel team to reimagine the structure through a “new luxury hospitality lens,” Monte said. She highlighted multiple architectural elements that stood out to the team, namely the “expansive windows and 11-foot ceilings.”
These components showed the team that “this building could be something really special,” Monte recalled. Adapting the office building into a hotel was both an opportunity and a challenge; the property wasn’t designed with traditional hotel room dimensions in mind, so the Drey team started “working with the existing structural columns, the window location, and the ceiling heights,” Monte explained. Through this process, they realized that the project presented “an amazing opportunity,” as every room could be different. Rather than “forcing” a standardized room layout, the team leaned on the existing architecture to guide the design of the rooms, creating distinct configurations through “ceiling conditions, sightlines, and outdoor relationships.” As a result, each guestroom feels different, delivering a unique stay for every guest. These spacious residential-like accommodations cater to luxury travelers by delivering a sense of place and discovery, and the office building’s architectural design facilitated that. “The reuse of this building gave us something that’s very difficult to manufacture in a ground-up hotel,” Monte said. “It’s imperfection to me in the best way possible, because the building quirks gave us the character to use that give Terraces at the Drey this edge.”
Additionally, the Drey team capitalized on the “tremendous” amount of existing outdoor space by using it to build the namesake private terraces, providing an indoor-outdoor ability that further positions Terraces at The Drey as a distinctive hotel stay.
Launching the Project
Beginning the adaptive reuse project was a risk for the Drey Hotel; when Monte joined the team three years ago, the property had 38 rooms. But she quickly saw the potential of the surrounding ecosystem, as it could evolve into “a resort in the middle of Dallas.” The team began a lengthy process of repositioning the hotel by adding services and amenities and progressing from a limited-service property to a luxury boutique destination. With ownership seeking to enhance performance by increasing the room count, Monte and her team utilized lofts above empty shops in the village. The hotel’s initially limited room count drove this expansion, as Monte recalled how she kept hearing the front desk tell prospective guests that they were already sold out for the night. This showed her that the demand was there, and they needed more space. “So, we furnished those 12 lofts,” Monte said. “Working with the architects and the design team, we were able to fit 46 rooms, essentially almost doubling in size.”
Beyond the office building, The Village Dallas itself was a fitting place for an adaptive reuse project, as it has multiple built-in demand drivers. Monte detailed how the Drey has built a brand on its “resitality” by blurring the lines between residential accommodations and hospitality; guests arrive into an “ecosystem” with a coffee shop, event space, a pool, pickleball court, and retail shops. Monte emphasized that the village itself is the resort, and the hotel is the guest’s home base. This has been another key benefit of the adaptive reuse project; rather than trying to build a sense of neighborhood or lean on local attractions, the Drey has these strengths built in.
Challenges and Problem-Solving
While this adaptive reuse project came with several built-in benefits, converting an existing office building presented several challenges. Monte noted that, on the surface, some might think that projects like this are easy. “I think one misconception about adaptive reuse is that the building already exists, so it must automatically be easier,” she said. “And that’s certainly not always the case. You’re inheriting conditions.” She recalled how, through the process of adapting the building, the team “discovered things” along the way, and they had to solve problems that wouldn’t necessarily be an issue with a ground-up hotel. Specifically, Monte said the team inherited “the electrical, some of the plumbing, and the location of the elevator,” among other components. With an adaptive reuse project like this, the team had to “resist trying to force traditional hotel standards onto a building that wasn’t created for them.” However, as Monte reiterated, the trade-off was that the final product was “extraordinarily different and special,” which bolstered its appeal to today’s luxury traveler. In a market as big as Dallas, there are plenty of options in the hospitality space, and creating a traditionally beautiful hotel isn’t enough anymore. “You need to give a reason to be remembered,” Monte said. “We weren’t starting with a traditional hotel footprint, but it ended up being one of its greatest strengths.”
Best Practices for Adaptive Reuse Projects
The adaptive reuse that produced Terraces at The Drey offers a number of lessons for the hospitality industry. When working with existing buildings, owners and operators should understand the property “before deciding what they want it to become,” Monte said. “Not every office building should become a hotel. You have to look at the building, the bones of the building, the location, the access, surrounding demand generators, and most importantly, if there’s a compelling guest experience around it.” With the Drey Hotel, the property is part of an ecosystem at The Village Dallas, so the conversion of the office building was an opportune extension. Monte also underlined the importance of bringing operations into the conversation early. “Something can be architecturally beautiful, but incredibly difficult to operate,” she said. “Housekeeping has to service it. Maintenance has to maintain it. Our bellmen need to navigate it. And then at the same time, guests need to intuitively understand it. So, working very closely and collaboratively with the design team and the architects is truly the biggest secret sauce.”
Adapting existing buildings is far more extensive than the process of converting a property into a hospitality destination. With these projects, owners and operators must also reimagine their purpose, Monte said. Adaptive reuse necessitates the combination of two of the hospitality industry’s core elements: consistency and individuality. “The industry has historically valued consistency, which is very important operationally,” Monte said. “But today is all about being unique and different. And so, the adapted reuse concept forces these two ideas to coexist.” Projects that can successfully blend these concepts stand to deliver exceptionally distinct guest experiences, thus setting themselves up for success in an increasingly competitive market. For the Drey, it has meant creating consistency in service, even when every room is unique. “For us, the room may be different every time you stay with us, but the way you’re welcome, recognized, and cared for, that should unmistakably be Drey. We call that concept the Drey way. And that’s ultimately what hospitality is for us.”