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The Process of Transforming a Hotel into an Affordable Workforce Housing Complex – Maxwell Drever Highlights the Best Practices

If you read the news, you will know that many hotels are getting converted to affordable workforce housing accommodations says Maxwell Drever. However, this initiative got a boost after the pandemic outbreak that has rendered many people homeless. Also, people are aware that the hospitality industry has suffered drastically because of lesser hotel occupancies. The majority of hotels have witnessed tremendous losses. And while some of the hotels have re-opened as the pandemic rules and restrictions have eased up a bit, several other hotels are still struggling. It might take some time for the hotel industry to bounce back to business.

Maxwell Drever says that back in the past, most developers aimed to develop Class A properties for recovering the increased building costs via costly rents. And increased attention on this resulted in a lack of affordable housing choices. Today, there is an increased demand for workforce housing, and most developers can look at a broken hotel for this. Since these hotels usually have living rooms, kitchens, and baths, the cost of conversion is low. But when a developer or a real estate company is planning for this conversion, it is necessary to keep some best practices in mind. Some of the crucial ones are:

The property should be safe for the conversion

Here, it is essential to consider the hotel’s age and strength. Often there are old and broken hotels that are very old and might need ample repair work before the conversion. Hence, it is essential to ensure whether the conversion is practical and feasible. The developers and real estate companies must evaluate the quality of the building and its strength and assess whether it can sustain when it gets converted to an affordable housing unit.

The property should be apt for providing the required shelter

The ultimate purpose of affordable workforce housing is to provide shelter to low- and middle-income group families. It is also apt for those living on the streets and who have undergone massive income loss because of the pandemic. Hence, the developers need to assess the hotel structure and aesthetics to check whether it can convert into a living space that will resonate with the target group for which it is getting built.

Decide on the best rent

Usually, the affordable workforce units get divide into two categories. First, one unit is kept for that section of the people who can’t afford a home. And second, for people who have a job. But are paying more than half of their earnings on their home rent. Hence, for the second group, Maxwell Drever says it is essential to decide on a home rental. That will be easy for the occupants and residents to pay. The rent should decide based on the income level of the residents. And other costs that they have to incur.

These are some of the essential factors and best practices that are important. When a developer or real estate agency considers converting a hotel into an affordable workforce housing unit.

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