Maxwell Drever Scholarship

Maxwell Drever Scholarship

Broken Hotels Get Transformed into Low-Cost Workforce Housing – Maxwell Drever Shares Crucial Views

The social and economic health of a nation doesn’t improve much if its people are homeless, says Maxwell Drever. The United States has been withstanding the housing crisis problem for a while now. And the pandemic outbreak seems to have aggravated it. The pandemic has also hit the hotel industry massively, thereby creating many losses. But it’s time when people should connect the dots and arrive at a solution. And that’s what most hotel owners are doing. They are deciding to convert their properties and transform them into affordable workforce housing units in an attempt to address and resolve the housing crisis. Also, it’s a way to put their properties back into use.

The hotel conversions provide a cheap option to new construction


Maxwell Drever says that workforce housing and low-cost rental development projects can be cost-prohibitive for developing owing to restrictive zoning, building codes, high land price and various other factors. The developers are taking up the financially distressed motels and hotels as a reasonable option for developing multi-family units due to what the hotel industry witnessed. For example, developing a new housing unit in a metropolitan space can go up to anything between %150,000 and $200,000 each unit, compared to $60,000 and $70,000 for every conversion unit. When it gets completed, the reduced conversion cost leads to the capacity to provide increased affordable rents to the household living in units.

Today, there are several instances where hotels located in strategic areas are getting converted to low-cost workforce housing units. These properties are best for getting converted to one-bedroom or studio units and also come with a fitness center, pool, parking and other amenities that will make life easier.

The hotel owners need to think well before arriving at the final decision. Handing over their hotel to a developer so that it can get used as a low-cost housing unit is a philanthropic act. But are they moving ahead with this initiative only because of this? Do they have a business plan? Will the broken or unused hotel get them some profit in the coming days? The hotel owners need to focus on these questions before they plunge into any decision.

It’s essential to avert problems during the conversion process


Maxwell Drever says that it’s wise for the hotel owners to get in touch with a commercial assessment and valuation firm that has the necessary expertise for such projects. It will help address and remedy several challenges, for instance, deciding on the feasibility of the hotel conversion. It also helps in navigating correctly and successfully through the complex web of building codes, rigid zoning and various other needs.

Today, there are expert firms that can help the developers, hotel owners, and others in each phase of the hotel conversion, comprising the market feasibility, appraisals, zoning analysis, environmental assessment, and other essential services in such conversion projects. Such firms have appraisers specializing in multi-family and hotel properties, comprising low-cost housing, which enables clients to address particular issues associated with the hotel to low-cost housing conversions.