The pandemic outbreak has changed the way we have been leading our lives. It has posed a threat on families, health, commerce, and neighborhoods. However, the challenge is not to assume defeat to it. Apart from the losses that it has resulted in, the pandemic outbreak has also resulted in certain scopes which have been beneficial for society says Maxwell Drever. The pandemic has had a negative impact on the hospitality business and mostly for the extended-stay hotels. And as a result, one of the profitable ways in which several old hotels decided to up their use and utility is to agree to get converted into affordable workforce housing units, which can act as a residence for several people who need it. However, this process is not as easy as it sounds. It requires creativity, hard work, correct planning, and effective execution.
The essential steps to consider
According to the latest reports, the hotel industry will take about three to five years to recover from the loss that has been brought about by the pandemic. However, some hotels may recover fast depending on multiple aspects. But for most hotels, recovering from the pandemic loss is a matter of time as well as luck. Hence, as Maxwell Drever says handing over their property to a developer to convert it to an affordable workforce housing unit seems more beneficial. But here are specific steps to consider by the developer, real estate company, and the hotel.
Is it going to serve a purpose?
Hotels do serve a purpose for travelers and tourists. However, the pandemic has imposed travel restrictions on people, and the occupancy rate for hotels has gone down. Furthermore, several old and broken hotels have ample space, but there’s no use for it. Hence, when a hotel owner thinks of converting the property to an affordable workforce housing unit, they need to think about the purpose that this conversion will serve. For instance, will it provide a home to a specific section of people who otherwise were living on the streets? Will it provide a better shelter to people who had to spend over 30% of their income on home rent, which compromised their life quality? If yes, then this conversion will cater to a social purpose and lead to overall economic and social development.
Is the location the best for conversion?
The hotel’s location has a vital role to play in the conversion and the purpose it caters to. For instance, several workers belonging to the low- and middle-income group search for affordable accommodation that will be close to their workplace. Suppose the hotel is situated in an area close to the workplace of most of the occupants. In that case, converting the hotel into an affordable workforce housing is a smart call. It will help people reduce their commute time and will also enable them to live in better conditions.
Maxwell Drever says that the process of converting a hotel into an affordable workforce housing unit is challenging. And it is essential to consider the points discussed above for the seamless execution of the project.