The life expectancy of people over 65 is changing. Wealthy families are no longer looking to place their elders in traditional nursing homes, but rather in comfortable, social, and prestigious living spaces. This transformation signals the emergence of a new segment for tourism and real estate investors.
In this article, I explore how hotel-residence hybrids designed for older adults have become an investment opportunity, how they generate sustainable income through purchase and leaseback models, and how they gain prestige through soft brand collections.
- Comfortable independence
- Purchase + leaseback model
- Soft brand partnerships
- Mixed-use advantages
- Social living, far from the perception of nursing homes
I invite all investors and my advisory colleagues in the sector to lead this transformation together.
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- “Age-Friendly Luxury”: A Silent Revolution in Tourism with New-Generation Hotel-Residence Hybrids
Written by: Mehmet Yüce – Hotel Investment Consultant, Founder of MY Hotel Investment Consultancy
My Call to Investors: Are You Ready for a Game-Changing Segment in Tourism?
Today, I want to introduce you to a model that goes beyond classic tourism investment patterns, is shaped by demographic transformation, and appeals to a high-income customer segment: hotel-residence hybrids designed for older members of affluent families.
This model is not just accommodation, but also a living solution that offers “comfortable independence” and “personalized living.” For the investor, it means sustainable income, low-season risk, and prestigious brand partnerships.
Demographics Are Changing, Demand Is Silently Growing
The population over 65 is rapidly increasing both in Turkey and globally. These individuals are now wealthier, more informed, and more discerning. Wealthy families are seeking both independent and secure living spaces for their elderly members. This quest is driving a shift towards hybrid models that combine the comforts of residential homes with hotel services, rather than traditional nursing homes.
The demands of this segment are clear:
• Independence, but not solitude
• Luxury, but homely
• Social, but discerning
• Healthcare, but not a hospital
Why Is It Attractive to Investors?
The advantages this model offers investors:
• High-income, loyal customer profile: Elderly individuals prefer long-term stays and have a strong sense of belonging.
• Increased off-season occupancy: Destinations like Bodrum and Antalya can be occupied by elderly guests during the winter months.
• Low operational risk: Comfort and service, not entertainment, are at the forefront.
• Income stabilization with a membership model: Families can create a fixed income through annual memberships or a "club residence" model.
• Purchase option: Hotel rooms and residences designed for the elderly to stay in for life can be offered for sale.
• Leaseback model: Purchasing investors can generate passive income by leasing them back to the facility's management.
Model Components: A New Generation Living Facility Designed for the Elderly
This investment model, unlike traditional hotel or residence projects, is based on a living facility concept where elderly individuals can live comfortably for life while also providing the investor with a sustainable income. The key components of this facility are as follows:
First, residences should be designed to be elderly-friendly. These apartments should be spacious, accessible, barrier-free, and equipped with a simple aesthetic. Details such as elevator access, non-slip floors, and emergency call systems ensure both comfort and safety.
Second, hotel services should be integrated into these residences. Concierge services, cleaning services, food service, and healthcare support services make the daily lives of elderly individuals easier and reassure their families. When these services are provided by professional teams, the challenges of finding personal care and security are eliminated.
Thirdly, social spaces and curated events encourage older adults to socialize. However, this socialization should be selective, calm, and high-quality, rather than crowded and noisy. Activities such as small concerts, art workshops, and nature walks support both mental and physical well-being.
The fourth component is the invisible yet accessible healthcare infrastructure. Instead of creating a permanent hospital atmosphere within the facility, medical support should be readily available when needed. This approach allows older adults to live safely and without feeling like they are "sick."
Fifthly, the purchase option is one of the most attractive aspects of this model for investors. Older adults or their families can purchase a hotel room or residence for lifetime stays. This, unlike the traditional rental model, provides the investor with direct sales revenue.
Sixth, the leaseback model is introduced. Purchasing investors can generate passive income by leasing their properties back to the facility's operator. This system offers a structure that appeals to both individual and institutional investors.
Finally, these facilities should be made attractive not only to elderly individuals but also to hotel guests and residence owners through a mixed-use approach. This transforms the facility into a versatile living space that appeals to different segments.
This holistic structure offers a prestigious and social lifestyle for elderly individuals, far removed from the mentality of a nursing home, while also providing a long-term, low-risk, and high-return model for investors.
This structure provides both the comfort of elderly individuals and the security of their families. It also removes the "nursing home" mentality from the elderly and offers them a prestigious and social life.
Where Does It Create Value?
Ideal destinations in Turkey where this model can be implemented:
• Major cities and their immediate surroundings: Easy access to metropolitan areas such as Istanbul, Ankara, and Izmir.
• Regions with high natural and air quality: Places like Sapanca, Bodrum, Fethiye, and Urla.
• Developing cities: Cities with strong infrastructure and suitable for developed mixed-use projects in Anatolia, such as Konya and Kayseri.
In these regions, facilities can be created where older people want to live for their entire lives, not just during certain periods of the year.
Mixed-Use: For Everyone, Not Just the Elderly
These facilities are not just for older people, but also:
• Short-term accommodation for hotel guests
• Long-term living for residence owners
• A prestigious alternative for individuals who want to accommodate their extended family members
This allows investors to diversify their income with a mixed-use model that appeals to different segments.
The Problem of Maids Solved: Safe and Accessible Support
The residence of wealthy older people living in large villas brings with it the challenges of finding maids and security. Thanks to these hybrid properties:
• All services are professionally provided
• Security and access are controlled
• Families can comfortably accommodate their elders in these properties.
Brand and Operational Strategy
Soft brand hotel collections allow independent investors to access the reservation systems, marketing power, and brand perception of large chains, while maintaining design and operational freedom. These brands offer significant advantages in terms of both prestige and operational flexibility, particularly in hybrid accommodations developed for older adults.
One of the prominent brands in this segment is Mövenpick Living. This collection, under the Accor umbrella, directly addresses the comfort, accessibility, and service expectations of older adults with its residence-hotel hybrids suitable for long-term stays. MGallery, part of the same group, offers an aesthetically pleasing and peaceful environment for older adults with its culturally and artistically themed boutique hotels.
The Crest Collection stands out with Ascott's serviced residence concept. This structure, which combines home comforts with hotel services, supports older adults' sense of belonging while offering investors a long-term revenue model.
Hilton's Curio Collection and Tapestry Collection brands are also suitable options for older adults. Curio offers a personalized experience with its boutique hotels with local character, while Tapestry, with its simpler and more accessible designs, offers an attractive alternative for those looking to invest in the mid-range segment.
Hyatt's Unbound Collection brand, on the other hand, responds to older adults' quest for belonging and security with its storytelling, tranquil, and prestigious hotels. For smaller-scale projects with a local character, collections like the Ascend Hotel Collection (Choice Hotels) offer less crowds and more personal space, tailoring to their needs.
The common denominator among these brands is that they offer seniors a prestigious and social environment that avoids the perceived "nursing home." They also offer investors the advantage of brand strength, operational flexibility, and differentiation. When choosing a brand, the target market, the property's architectural character, operational capacity, and brand costs should be carefully considered.
Conclusion: A New Segment in Tourism, a New Opportunity
This model differs from traditional hotel investments by:
• Generating longer-term rental-like income
• Carrying less risk of low season
• Offering a living space where families develop an emotional bond
Hybrid accommodation facilities designed for older members of affluent families are not just accommodation, but a living solution. This solution offers investors sustainable income, prestigious brand partnerships, and social benefits.
My advice to investors is this: Don't ignore this segment. The transformation in tourism is quiet but powerful. Being a pioneer in this transformation brings not only profit but also vision.
Note to Investors
The age-friendly hotel-residence hybrid model discussed in this article is not just an idea; it is a viable strategy based on demographic realities, sociological transformations, and investor expectations. However, the dynamics of each region, the scale of each project, and the goals of each investor are different.
Therefore, it is crucial to conduct detailed regional and project-specific studies with entrepreneurs seeking to invest in this accommodation segment. Location selection, target audience analysis, architectural planning, brand partnerships, and financial modeling are multi-layered processes requiring expertise.
As hotel investment consultants, we can provide investors with not only technical but also strategic guidance during these processes. Furthermore, we embrace this vision not only on our own behalf but also on behalf of all our colleagues in the sector. Because the widespread adoption of this model means not only individual profit but also a contribution to the transformation of Turkish tourism.
Our call to investors is this:
Let's explore and shape this segment together.
