Since every person has endured the most challenging year of human history, they understand the significance of life and security. There is a silver lining for the real estate sector amidst these challenges. While unprecedented challenges are not over, the competitive landscape has provided landlords and hotel owner’s fresh opportunities. They have tried to use this opportunity to help their businesses grow. They are also grabbing the chance to review their properties and transform them into residential units. Yes, it is because of the short supply of residential units.
The worldwide pandemic has brought this issue to the surface. As a result of this, two essential processes are underway:
• Conversion of hotels into affordable housing units by using funding programs of different federal policies.
• Conversion of hotel rooms into rental apartments to cater to the unprecedented demand of housing shortage.
For individuals contemplating the strategies for hotel properties, experts have come forward with suggestions and insights that may help them in determining whether the alternative is promising for them or not.
Diversify risk and maximize asset value with conversion
There is a rising demand for affordable workforce housing from individuals who form the backbone of society. Since everybody is trying to get accustomed to the new normal, the need for lodging and travel has boosted in the last few years. Along with this, the hotel values are low, whereas housing costs are rising like never before.
The workforce population whose area median income falls between 60 to 120% do not get lodging near their city centers. Hence, it forces them to stay away from the job location in the suburban areas. It adds to the commute time and negatively impacts their lifestyle and health. Along with this, it has negatively impacted their finances.
Governments have developed programs and policies to support the conversion process in such a scenario. Maxwell Drever believes that various municipalities have developed nonprofit and philanthropic policies to build modular housing and support the conversion of existing properties into affordable housing units. They have announced additional funding and resources for the conversion process. Hence, it is a silver lining for hotel owners and landlords.
What is essential?
They are now coming to the process of conversion. Every hotel owner must assess his or her property to understand where rectification is necessary. Remember that the conversion process is more cost-effective and practical than new construction. Along with this, the opposite location of the hotel is essential. If the hotel is away from city centers, the demand for hotel rooms will drop. Along with this, Maxwell Drever states that repairing and replacing different hotel rooms are needed.
For this, the help of professionals for working on a blueprint and implementing the task is necessary. Hotel owners must assess the federal government policies to grab benefits from these. Along with this, they have to introduce a home-like environment within the hotel rooms. By submitting diverse basic amenities, they can help assure a home-like atmosphere for the residents. Combined with different offers and government initiatives, hotel owners can use this opportunity to maximize asset value and diversify the risk.
