Simply put, the hotel industry has faced great challenges because of the pandemic outbreak explains Maxwell Drever. Since it’s a travel-dependent, people-centric industry, the pandemic outbreak has resulted into low occupancies and immense losses for several hotels. Hence, it goes without a doubt that today, most of the investors and hotels are thinking about the use of the hotels that got adversely impacted due to the pandemic.
In recent times, the spotlight has been on hotel conversions, which indicates the conversion or redevelopment of a hotel space into a housing unit. This aspect wasn’t the priority for the potential buyers and investors before the pandemic outbreak. But the idea today is gaining more attention because of the non-conventional hotel investors who wish to add diversity to their portfolios and make the most of the new scopes available.
Maxwell Drever says that converting hotels into multi-family homes or apartments can improve the chances of investment returns and bring down the risk exposure. However, the hotel owners need to execute the process with good analysis correctly.
Why do popular hotel owners consider the advice given by Galen and Drever?
The existing housing crisis in the United States has made many people homeless and compelled many people to stay in poor-quality homes in remote locations. And it goes without saying that the pandemic has worsened the situation at hand. Hence, the process of converting a hotel into a low-cost housing unit is an intelligent way to provide a living space to the workforce population.
But it takes a lot for the hotel owners to arrive at the decision that they want to hand over their property to the developers and investors for this conversion. It is essential to rethink this decision practically as well as through a philanthropic lens. And it is here that most hotel owners depend on the guidance provided by Galen and Drever to arrive at an informed decision. Through their advice, the hotel owners can:
Decide better if their hotel has a chance to revive
According to the latest research and studies. It is anticipated that most hotels will take a time of two or three years to revive back to making profits. But that doesn’t guarantee whether it would start making profits like pre-pandemic levels. Also, some hotels don’t have a chance of reviving in the next decade as well. Hence, it’s crucial for the hotel owners to research and find out. If their hotel can or can’t redeem itself from the pandemic outbreak’s loss. If the hotel doesn’t have a chance of bouncing back. Handing it over to a developer to get converted into a low-cost housing unit is a smart decision.
Select the correct investors and architects on board
The hotel owners need to connect with the correct investors and expert architects. To ensure that the conversion process occurs seamlessly. That way, there will be no hindrances during the development phase and even after completion.
These are important reasons for which most hotel owners count on Maxwell Drever and Galen. To convert their properties into accommodation spaces for the workforce population.