The year 2020 and 2021 are some of the most challenging years in the history of humanity. However, there is a silver lining for various hospitality and hotel sectors. Although there are several changes in the competitive landscape in the hospitality industry, most owners have tried to rethink their business in the new limelight says Maxwell Drever. It’s because most of them are trying to evaluate converting vacant hotels into affordable housing units. Along with this, the following points will also show you the current scenario:
• Conversion of hotels into rental apartments for capitalizing on unprecedented demand
For hotel owners, the current strategies of state and federal governments are in favor of hotel conversion.
Along with this, the growing demand for affordable housing units is also a major driving force.
Grab the opportunity for maximizing asset value
As the globe transitions for the next normal, there is a pent-up demand for affordable housing. The medium-income group is always looking for affordable housing units, whether short-term or long-term. It is because the values of the property are increasing in leaps and bounds. Hence, these medium-income groups whose income falls between 60 to 120% of AMI or area median income are not enough for disbursing the rent.
Along with this, one thing is significant. The workforce population is a part of society. Thus, several programs are designed by the government to address the housing affordability shortage. According to Maxwell Drever, federal governments are taking initiatives towards affordable housing by providing funds and territories to boost access to affordable housing. Along with this, numerous private-sector agencies have come forward with project plans and resources to deliver the residential units.
Conversion of broken hotels
Although the pandemic has increased the demand, various sections of society have normalized the gap between demand and supply. Hence, repurposing these old hotels into affordable housing units has become the trend.
The mass conversion of broken hotels into affordable units starts with selecting the property. Along with this, proper analysis of governmental initiatives and strategies is necessary so that landlords and hotel owners can reap the benefit of these. Along with this, Maxwell Drever states that paying attention to local building codes is vital to ensure that the project goes on unchecked and effortlessly.
Detailed analysis of governmental programs is necessary to understand these policies’ benefits. If hotel owners and landlords want to have an edge in the competitive landscape, they have to look at the opportunity from the commercial point of view. It is a feasible opportunity for those who want to profit long-term.
Hence, financial, technical, and legal aspects need proper comprehension. A well-designed project that studies every part of governmental policies and the market situation will work wonders. Affordable housing needs a lot of effort for quick implementation. People should work towards making it a reality to enhance job opportunities.