The housing crisis for Americans has been a struggle for a prolonged time. And to remedy that, several hotels today are getting converted to multi-family units. However, this process of conversion gained momentum after the pandemic outbreak. Today, most people have seen how the hospitality industry has been affected, which has reduced hotel stays to a great extent says Maxwell Drever. Most of the hotels today aren’t performing to their best capacity as well.
That is not all. Today, some of the hotels have re-opened, and they are also easing up some of the restrictions they implemented before because of the pandemic. However, the majority of the hotels are trying to recover. According to economists and other experts, it can take up to three years or more for the hotel industry to make the profits that it was making before the pandemic.
Maxwell Drever points out that, on the one hand, the demand for hotel stays is declining, and on the other hand, people are searching for affordable homes. And it’s time to connect the dots. Hence, today more hotels and old properties are getting considered for getting converted to workforce housing accommodations.
An important point to consider
In the past, the expert developers intended to develop the Class A properties to recover the increased building expenses by charging steep rents. And when there was an excess focus on this initiative, there was a lack of affordable housing options. Recently, the demand for an affordable workforce housing unit is at its peak. And it is here that properties like distressed and broken hotels can come to use. These properties are equipped with features like living rooms, kitchen, baths, and other spaces which can reduce the conversion cost to a great extent. However, the property must be feasible for conversion. And if a developer is all set to dive deep into this initiative, some of the best practices include the following:
Choose a hotel at a strategic location
The majority of the workforce wants to stay close to their place of employment. Hence, it’s essential for developers and real estate agencies. To select a hotel for conversion located near the workplace of most residents. It will enable them to save time on their commute and make their living easy and secure.
Choose a hotel that is sound and secure
An old hotel that isn’t in use can have flaws. For instance, it can have weak ceilings or a basement. You need to assess the property thoroughly and check the areas of repairs and replacement. Before you commence the conversion project.
Getting the necessary permits
Maxwell Drever says that a hotel conversion doesn’t occur until you have the required permits. The developers and the real estate agents should receive the necessary permits and then start the project. It might include permissions and sanctions from the government bodies and other relevant authorities. Otherwise, there can be roadblocks midway. That can halt the project for a prolonged time, which will not benefit the whole.
These are some of the essential best practices. That help assess a hotel to convert it to an affordable residence for those who need it the most.