Picture this: It’s 2 PM on a Tuesday, and you need somewhere to work that isn’t your cramped apartment or the coffee shop where baristas give you side-eye for nursing a single latte for three hours. You walk into a hotel lobby, not as a guest, but as a neighbor. You settle into a comfortable chair, order a drink, and suddenly you’re surrounded by the gentle hum of conversation, the clink of glasses, and the feeling of being part of something larger than yourself.
This scene is becoming increasingly common across cities worldwide. While coworking spaces struggle with membership churn and coffee shops battle the economics of loiterers, hotels are throwing open their doors to non-guests. They’re transforming lobbies into vibrant community hubs, reclaiming a role that society desperately needs: the third place.
The Coffeehouse Revolution Revisited
Sociologist Ray Oldenburg coined the term “third place” to describe spaces beyond home and work where community happens organically.
Photo by Think of the neighborhood pub in England, the Italian piazza, or the American diner where regulars knew each other by name. These spaces served as neutral ground where social hierarchies dissolved and genuine connections formed over shared tables and unhurried conversation.
For decades, coffeehouses filled this role. But something shifted. Independent cafes faced crushing rent increases. Shopping malls, once teenage gathering spots, closed by the thousands. Public spaces increasingly restricted loitering and demanded purchases. Urban design began prioritizing consumption over congregation, leaving people without accessible places to simply be together.
This void created an unexpected opportunity. Hotels, sitting on prime real estate with underused ground floors, began asking a radical question: What if we welcomed everyone, not just overnight guests?
Hotels Redesign for Local Communities
Ace Hotel pioneered this transformation in Portland, where its lobby became a neighborhood living room.
Photo by Communal tables replaced velvet ropes. Local art covered the walls. All-day food service meant you could arrive at dawn and stay until midnight. Residents worked, socialized, attended concerts, and made friends, all without ever booking a room.
Other brands quickly recognized the potential. Marriott’s Moxy brand features ground-floor bars and coworking zones explicitly marketed to locals [Mylighthouse]. The emerging “poshtel” category combines hostel accessibility with boutique design, featuring coworking areas, craft cocktail bars, and strikingly designed social spaces [Whiteskyhospitality]. In Toronto, TABLE Fare + Social creates fluid zones for casual meetings, lunches, drinks, or gatherings, all within a hotel property [Ellsburygroup].
The strategy extends beyond trendy millennials. Luxury properties like 1 Hotels and Equinox Hotels offer wellness programming, rooftop access, and members-only spaces for local residents. Monthly memberships ranging from $200 to $500 create predictable revenue streams independent of occupancy rates.
The Economics of Openness
Over 60% of hotel revenues now come from sources other than room sales, with restaurants, bars, and coworking spaces leading the charge [Forwork].
Photo by Reservations for non-room services grew over 300% year-over-year between early 2024 and 2025 [Forwork]. As one industry analyst noted, “Owners and investors love that diversification of revenue” [Forwork].
This makes sense when you consider hotel operations. Lobbies and restaurants traditionally sit empty during midday and early evening, precisely when locals need third places most. Converting this dead space into productive square footage can increase revenue per square foot by 25% to 40%.
The benefits extend beyond direct spending. Local foot traffic creates ambient energy that improves the guest experience. Travelers increasingly seek hotels that feel alive, connected to their neighborhoods rather than isolated from them. Hotels with vibrant public spaces can command higher room rates than comparable properties with empty lobbies.
Community integration also builds remarkable brand loyalty. Residents who regularly use hotel amenities become advocates. When friends and family visit, they know exactly where to recommend. The hotel transforms from a stranger’s temporary shelter into a familiar neighborhood institution.
What Makes It Work
Not every hotel can simply open its doors and expect community to flourish.
Photo by Successful third places require intentional design and operational adjustments.
First, signage and entrances need to signal genuine welcome. Many hotel lobbies feel intimidating to non-guests, with security desks and formal reception areas creating invisible barriers. Properties that post “open to all” messaging and design street-level entrances for easy access see significantly higher local traffic.
Physical design matters equally. Flexible seating arrangements accommodate different activities throughout the day: solo work nooks for focused concentration, collaborative tables for meetings, and social lounging areas for casual conversation. Strong WiFi, accessible power outlets, and varied lighting support the full spectrum of third place activities.
Programming activates the space. Regular events like book clubs, networking mixers, and wellness classes give locals reasons to return and build community. Hotels hosting two to three weekly community events report dramatically higher local repeat visits. The space becomes not just available, but anticipated.
The Future of Gathering
As remote work persists and urban loneliness grows, hotels are positioned to become community infrastructure.
Photo by With U.S. hotel occupancy hovering around 65.8%, properties have both the space and the incentive to welcome non-guests [Meetboston].
Hybrid work models create sustained demand for professional spaces outside home and office. Day-use memberships and hourly room rentals have exploded as workers seek alternative environments for focused work, video calls, or simply a change of scenery.
Social needs are equally pressing. Mental health experts increasingly identify the lack of third places as a contributing factor to widespread loneliness. People need spaces where they can be around others without obligation, where presence itself creates connection.
Major chains are responding with third-place-focused brands and renovation programs. This isn’t a passing trend but a fundamental reimagining of what hospitality means. The hotel of the future isn’t just where travelers sleep, it’s where communities gather, connect, and belong.
Hotels are successfully reclaiming the third place role by opening spaces to locals, creating win-win economics, and addressing society’s growing need for accessible gathering spots. The transformation benefits everyone: hotels gain diversified revenue, guests enjoy vibrant atmospheres, and communities recover spaces for connection.
Next time you need somewhere to work, meet friends, or simply be around people, consider your local hotel lobby. You might discover your new favorite third place. No reservation required.
