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Maxwell Drever’s View on How to Analyze Hotel-to-Housing Conversion Viability

Although a recent virus outbreak has affected every aspect of American society, the American hotel industry suffered hardest due to the pandemic. The US is constantly exploring new ways to increase housing stocks. The empty hotels have begun receiving government support to promote their reuse as housing explains Maxwell Drever. However, these conversions are not easy. For example, many state environmental regulations require old hotels to meet housing standards.

Certain properties such as extended stay or high-rise hotelscan be more feasible to convert than others. As a result, landlords or hotel owners can expect funding and development incentives. It could significantly benefit existing communities andboost urban revitalization efforts to help cost-burdened neighborhoods access safe housing stock. However, you would want to ask – could residential conversion be desirable in a hotel area? In this context, consider what happens when one converts a hotel into housing units within a place with strict zoning policies.

You have to know ordinances that dictate the use of buildings and their surrounding land. Zoning rules differ by region as per population, unit size, number of parking spaces required for residences VS hotels, etc. Some cities feature separate residential, commercial, or industrial zones. Due to this, developing housing units in an area zoned as commercial may face regulatory challenges. Maxwell Drever informs that many places are easing rules and restrictions to solve the affordable housing crisis. Taking a careful approach from the hotel assessment phase for its viability as housing could come in handy. Here are some insights into this.

The suitability of hotel structure

You must examine its layout, structure, and marketing positioning when thinking of redevelopment. Extended-stay hotels can be ideal for multi-housing properties because of amenities like kitchenettes. It doesn’t rule out the necessity to expand plumbing work to create full kitchens. More precisely, such scrutiny can also reveal how many square feet can go into renting or selling. With this, you can measure the ceiling height and flooring plan. Old hotels generally lack a good flooring plan, due to which adaptability issues can arise. So like this, you have to explore all the aspects to understand the actual modification need and other factors.

Location of the property

You can experience faster conversion success with hotels enjoying existence in the same area as offices and housing demand. If it fits your requirements well, you have to pay attention to legal and zoning laws relevant for the region, adds Maxwell Drever. Make sure its redevelopment is not in conflict with the city code.

Once done with all the analysis, you can work on your conversion plan. If you are confident about the prospect, you don’t have to hesitate. The property will perform better. However, please don’t allow it to overwhelm your thinking. You should cover all the scenarios to ensure your hotel converts smoothly into an affordable housing unit for low-cost families with 60% to 120% of the area median income. It is just one part of the whole hotel conversion process. There are plenty of other things also. Connect with seasoned housing market experts for guidance if you cannot handle them alone.

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