Does location affect design?

It was recently announced that the Starwood Hotel chain was moving both its luxury and design team to new headquarters at Varick Street in New York City. They're bringing the two creative teams together. The two teams will both be moved to this central location.

The Starwood executive says the team merger plan for a creative hub is ideal because Bliss and Remede Spa brands employees "work closely with our hotel brands to develop signature spas and bath amenities in our hotels around the globe."

Do you think it's a good idea to move creative teams like two mentioned above into the same location? Do you think this will increase activity?