The shuttered Hot Springs Mall is getting a second act. Its current ownership group has announced plans to convert the aging enclosed structure into an open-air shopping center — a format that has proven far more resilient in secondary markets than traditional indoor malls over the past decade.
For short-term rental operators and investors in the Hot Springs market, this is worth tracking closely. Retail anchors drive foot traffic patterns, and foot traffic patterns directly influence where guests want to stay. An activated, walkable open-air district near Central Avenue could expand the geographic sweet spot for STR investments beyond the lakefront and Bathhouse Row corridors that dominate most host strategies today.
Open-air centers also tend to attract a different retail and dining mix — local boutiques, regional restaurant concepts, and experiential tenants rather than the big-box anchors that defined 1990s mall culture. That kind of tenant mix creates exactly the kind of "things to do" content that drives repeat bookings and stronger guest reviews on Airbnb and Vrbo.
The timeline and phasing of the redevelopment will matter. Construction periods typically suppress nearby property values temporarily, which could represent a buying opportunity for investors willing to underwrite a two-to-three year horizon. Once stabilized, proximity to a revitalized retail node generally supports higher average daily rates and broader seasonal demand.
Hot Springs has been on a steady upward trajectory for STR performance metrics, and commercial reinvestment like this reinforces the long-term demand story. Operators should monitor permitting progress and tenant announcements from the ownership group. As leasing activity becomes public, you will have a clearer picture of whether this development becomes a genuine guest amenity or simply fills vacant square footage.
Bottom line: do not adjust your portfolio strategy today, but put this project on your watchlist. A successful open-air conversion could meaningfully expand the viable STR investment radius in Hot Springs within the next few years.