Student housing operators entering 2026 are prioritizing renewal foundations and wellness-focused amenities as pre-leasing momentum for fall 2026 shows consistency with previous years despite earlier holiday period timing.

HH Red Stone, which manages student housing properties across university markets, reports that retention strategies have become central to lease-up success as operators navigate market conditions requiring more sophisticated approaches than pre-pandemic cycles.

“Being very renewal-heavy this year has been really positive,” explains Teddy Abdelmalek, Senior Vice President at HH Red Stone. “Returning residents are obviously looking for the best deals, and anything that you can push forward to capitalize on that renewal foundation is going to be key.”

Early fall 2026 pre-leasing activity reached 47% in December, up from 40% the previous year, though Abdelmalek notes the current post-holiday period represents a natural lull in leasing velocity before activity accelerates in early 2026.

Beyond standard fitness centers and technology integration, student housing operators are discovering differentiation through comprehensive wellness programming that addresses both physical and mental health.

“There are definitely some operators that underinvest in these areas,” Abdelmalek notes. “I’ve seen a variety of different properties invest in wellness and health needs, beyond the fitness center and beyond the general fitness accommodations. They’re actually bringing in physical trainers, bringing in different aspects to support the wellness program.”

Wellness-focused amenities now extend beyond equipment provision to include strength and functional training zones, cardio spaces in open areas, and community fitness programming, including Pilates and yoga. Some properties offer virtual fitness classes, providing residents access to guided instruction without requiring on-site staff for every session.

The wellness approach encompasses mental health considerations through intentional space design. Individual study pods, 24/7 access to quiet work areas, and collaborative conference spaces serve academic performance while addressing the social isolation concerns that emerged during pandemic remote learning.

“Students want spaces where they can unwind and relax, where the spaces themselves encourage healthy interaction,” Abdelmalek explains. “For example, community lounges, intentional seating, programming areas for community events, outdoor patio seating, and fire pit areas all support mental health through design.

Design elements contributing to wellness include natural lighting through strategic window placement, living plants, noise control systems, and sensory-friendly materials. Meditation areas and decompression spaces provide alternatives to high-energy social zones.

“It’s amazing how some of these simple interiors can actually make you feel certain ways when you’re studying,” Abdelmalek notes. “Accent walls in units versus in spaces, it’s a variety of different ways to make your experience different.”

The shift toward wellness programming reflects the broader repositioning of student housing from an accommodation provider to an experience creator. Properties compete not merely on unit quality and location but on lifestyle delivery.

“The real product that everyone’s pushing is the experience,” Abdelmalek says. “How do you make your spaces have a sense of belonging and ease of living where people can basically plug into those spaces?”

This experience-driven approach recognizes that students increasingly evaluate housing decisions based on community quality and lifestyle support rather than solely on price and proximity to campus.

The COVID-19 pandemic accelerated this trend by demonstrating the importance of social infrastructure and mental health support within residential environments. Forced isolation during remote learning periods created lasting awareness of residential community quality’s impact on academic performance and personal well-being.

HH Red Stone’s operational philosophy centers on alignment with property ownership rather than traditional fee-based management incentive structures.

“Our management company treats every property like it’s our own,” Abdelmalek explains. “True partnership means aligning goals and sharing those outcomes as well, the good with the bad.”

The approach contrasts with conventional property management, where success metrics focus on occupancy and revenue generation without direct exposure to investment performance. HH Red Stone’s model creates what Abdelmalek describes as managing “as if you have an equity stake in the game.”

This alignment manifests through hands-on operational involvement, disciplined systems, and accountability structures that tie management performance to overall property investment returns rather than isolated operational metrics.

“HH Red Stone brings this hands-on approach to student housing by driving ultimate performance through insight, disciplined operations, and accountability,” Abdelmalek notes. “When we gain a partner on the investment side, they know exactly what they’re going to get, and we know exactly what it takes for student assets to succeed.”

The philosophy addresses industry dynamics where property management companies can generate consistent fees while underlying property investments underperform. The misalignment creates tension between managers optimizing for their compensation structure and owners seeking investment returns.

“It’s really about gaining that partnership versus just having someone managing an asset without that alignment,” Abdelmalek says. “You must manage differently to obtain that philosophy which is relatively simple: Your success is our success.”

Looking ahead to 2026, HH Red Stone anticipates that operators emphasizing renewal foundations and comprehensive wellness programming will outperform competitors focused solely on acquisition and initial lease-up.

The renewal-heavy approach recognizes that returning residents provide both revenue certainty and operational efficiency compared to complete annual turnover. Properties maintaining strong retention rates face lower marketing costs, reduced turnover expenses, and more predictable occupancy throughout lease-up periods.

Wellness programming serves retention objectives by creating differentiation that justifies renewal decisions even when competing properties offer comparable units at similar pricing. Students experiencing genuine community and lifestyle benefits develop loyalty that transcends simple price comparison.

The combination of being renewal-focused and incorporating operational excellence represents what Abdelmalek characterizes as managing differently rather than simply managing to collect a fee.

Founded in 2015 and headquartered in Silver Spring, Maryland, HH Group (the parent organization) is a private equity real estate firm focused on student housing investments across the United States. The firm has earned a reputation for strategic growth, disciplined underwriting, and operational excellence. With over $900 million in assets under management and a portfolio of approximately 24 properties, HH Group maintains a strong presence in premier university markets, serving students at top-tier institutions.

The HH Red Stone property management arm, part of the platform, operates nationwide with a rapidly expanding management footprint. Its success is driven by a combination of institutional expertise, entrepreneurial agility, and a resident-centered investment philosophy that prioritizes high-quality living experiences.

The asset classes for property management services include: Student, Multifamily, Affordable, Mixed-use, and Senior Housing assets across nationwide markets. The firm emphasizes operational alignment with property ownership and comprehensive resident experience programming. HH Red Stone was recently recognized as a Top 25 Property Management Operator by Student Housing Business.

HH Group is committed to continuous innovation, leveraging real estate technology, targeted marketing, and strong client relationships to enhance resident satisfaction and maximize investor returns.

Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.

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