Both government and private buyers collaborate with hotel owners and re-evaluate their properties into residential units says Maxwell Drever. The COVID-19 pandemic has halted every section of society and the hospitality sector.
Investors and buyers have years of interest in old properties because of the way they are built and maintained.
Hence, they are trying to repurpose these estates into residential units like affordable housing and lodging to help the workforce population. Some have found success in these conversion tasks, but others are lagging. Although most individuals are interested in redeveloping their hotel rooms into residential units, they do not know what steps can make this happen.
Reconsider hotel properties to help the workforce population.
Looking at the hospitality and real estate sectors, you will see that both have been worst affected by the COVID-19 pandemic. However, real estate investors are using this opportunity with a distinct outlook. Hotel owners are rethinking and evaluating their properties for using the same to make a profit. Conversion is at the top of their priority list. It’s because it is feasible in cost and financially a promising avenue.
Along with this, Maxwell Drever reveals they are trying to figure out whether the conversion is legal or not. They must determine whether the physical structure is appropriate for transformation or not.
Hotel owners and buyers are looking to transform hotel rooms into multifamily, affordable housing, and student housing. The workforce population living on the far fringes of the cities has a different requirement. They require affordable residential units near their job location. However, the increasing cost of land and real estate properties is making things difficult.
What to do?
The pandemic has altered the way people think about their residence. People have realized the significance of housing and family. Previously, private entities and investment trusts used to take up philanthropic initiatives. However, today you have real estate investors and various international institutions providing money and reserve to help real estate investors and private developers undertake the conversion.
They have a completely different viewpoint from the current buyers. They realize the significance of the community and economy at large. Along with this, various state, country, and local governments assist the hotels in undertaking the conversion and procuring the benefit from the governmental authority.
Overcoming the challenges
There is a challenge that investment in this sector is not profitable. However, things are not so. The cost of conversion is much lower than undertaking new construction. Based on the size of the hotel and the type of professionals you are working with, you can trigger a new conversion process. Maxwell Drever suggests that a proper assessment of the hotel room and its strategic conversion is necessary.
There must be an initiative to introduce basic amenities inside the room to increase its charm. The convenient location in the city center is another factor to bring under deliberation. Remember that you ensure better returns when you engage in a deal and join hands with the public and private sectors.