The spread of the COVID-19 pandemic has resulted in economic blows affecting local and national governments says Maxwell Drever. It has negatively impacted every financial sector, slowly adjusting to the new normal. In such a situation, alternate use of hotels is underway. They are being transformed into rental properties to ensure a better supply of residential units for the workforce population. It is escalating the housing crunch and trying to cater to the service providers.
The conversion of erstwhile and vacant hotels into multifamily housing requires a fresh approach. It is a viable housing opportunity that hotel owners and real estate investors must reap. It has a robust financial capacity that caters to demographics that include low-income households, young professionals, seniors with fixed income, and homeless individuals. However, the conversion is not that easy and requires the joint effort of the public and private sectors.
Hotel transformation to increase revenues
If you are thinking about why hotel owners must transform their hotel rooms into multifamily units, Maxwell Drever states the answer is easy returns.
- The workforce population earning between 60 to 120% of the area median income. Does not have enough resources to maintain their daily lives.
- Hence, they require affordable lodging near their job location to cut their commute expenses and reach their job location on time. Also, they can invest savings in education, health, and other essential areas.
- For these individuals, new affordable residential units are built worldwide with a positive approach by the government and higher institutions. • It will benefit these individuals who were long struggling with empty hotel rooms and also lobby areas.
The need of the hour is the legal assessment of hotels and other erstwhile properties and repurposing these into small apartments.
Better Business for the hospitality sector
Hotels and landlords must transform their underperforming hotels into safe and secure residential estates to get better returns. If you look at analytics. You will see that around 26% of hotels in 2020 were on the verge of sale. Hence, the conversion process will provide the hotel owners with better occupancy and easy returns. Individuals troubled with housing shortages may get ease by this conversion process.
The way forward towards a more affordable future
Since hotel conversion is a cheap alternative to new structure building, the hospitality sector must pay attention. For this, proper examination of the hotel rooms and also transformation of the same with the help of professionals is necessary. For building residential units, proper groundwork is essential.
After paying attention to local building codes and regulations, Maxwell Drever says you can transform these rooms into rental apartments. Ensure to pay attention to building codes, restrictive zoning protocol, and also land-use policies. A brief look at governmental grants and initiatives for hotel owners in real estate investments will also help you reap the benefits of these policies. Hence, planning is necessary to ensure a better supply of residential units in the metropolitan area. After proper evaluation, hotel owners can make this dream a reality.