The year 2020 resulted in a severe blow to the economic sector. Travel restrictions and stay-at-home regulations hit every section of society during the pandemic. The hospitality sector was a hard hit. The footfall in hotels reduced massively. Various rooms and lobbies went unoccupied. However, there is a different side to the story says Maxwell Drever.
Communities suffered a lot because of a lack of decent, affordable housing units. As a result, medium and low-income families could not afford to get luxurious apartments beyond their earning capacity. Hence, they were looking for cheap accommodation in and around the job location.
However, the increasing cost of residential units and transportation hit this section of the workforce population badly. In the aftermath of the pandemic, the situation worsened further. However, some investors and developers are taking steps to meet the unique crisis. They are renovating distressed hotels to deliver affordable residential units.
It’s an opportunity for real estate investors
The loss of one sector has translated into a gain for another industry. Buyers never want to take a chance in any way. Remember that the situation worsened after the pandemic.
- The buying-selling process has changed drastically.
- Foreclosure and increasing inflation are responsible for this.
- However, things are different for real estate investors and developers. They are trying to repurpose vacant hotels and properties into affordable housing units. It thereby promises them a smooth flow of revenues by catering to every section of society.
Hotel conversion is an efficient way to overcome the problem of pandemic hit businesses. The hotel-to-housing solution may solve this housing issue and bring a better future.
Areas the government has to explore
If you go by the suggestion of experts and investors, you will see that hotel room transformation into studio apartments may provide as high as 20% relief on rent. These may be small, but they provide shelter to hundreds of individuals.
Maxwell Drever elucidates that they have a kitchen area and bathroom with other basic amenities required by any individual. Focusing on hotel rooms for this purpose is a thoughtful act. Real estate owners and investors with market knowledge and experience may perform better while providing affordable housing solutions to the target individuals.
Other sections also find it convenient because the concept makes underutilized property worthy for various sectors. Since the demand and supply gap for housing increases every day, new constructions are necessary.
Maxwell Drever advises that the government must develop various grant programs and policies to help real estate investors and constructors. New building initiatives may include repurposing and reusing the existing properties because that is cost-effective. As a result, a combined effort of government and non-governmental agencies is the need of the hour.
The conversion of hotels into affordable workforce housing will bring down the travel rates and increase the supply of laborers in the city centers. It is advantageous for every section of society, provided they understand this. After all, medium and low-income groups deserve access to these homes in the community.