Following the COVID-19 pandemic, the worldwide devastation is slowly getting back to normal. Since March 2020, developers, diplomats, and service providers are slowly arriving at a consensus. It is related to the generation of convenient and affordable residential units for the workforce population.
In the western world, people face the severe issue of eviction. They tried to assist these individuals by converting more than 120 sites into residential units. However, that is not enough because most of the population is still on the verge of expulsion. In such a situation, governmental agencies were the only source of help.
- Grab the opportunity
Property owners and real estate investors are looking at the conversion process as an opportunity to make money.
• If you look at the reports by chief executives and presidents of different housing councils, you will see that the homeless population has increased by leaps and bounds.
• Hence, hotel conversion can facilitate a better supply of residential units for most of the population.
• Remember that development plans and their due execution can ensure better returns when mixed with zoning and regulatory rules.
• Remember that the travel and tourism company was also affected by the COVID-19 pandemic.
It is slowly recovering with the combined effort of investors and real estate developers.
- Hotels into affordable housing
Hotels into permanent housing require proper assessment of policy options, grants, and incentives. Since multiple strict regulations can obstruct the conversion, Maxwell Drever believes you will have to think of an alternative or cost-prohibitive options.
Single room occupancy is not easy to achieve. It’s because hotel rooms are different. To assure the supply of supportive housing units, hotel owners have to work on the layout of hotel rooms and ensure they have a different approach. By introducing a home-like environment, you can help your guests feel at home and alleviate the feeling of homelessness.
The conversion is not a one-day activity.
To ensure that the housing shortage disappears shortly, transfiguring erstwhile properties and providing single-family units is the need of the hour. It requires proper planning with the help of professional monitoring and its execution. Hotel owners can take the help of regulatory funding and relief measures from the government. These promise support to the individuals and assure the much-needed progress.
- The opportunity
The hospitality sector and hotel industry is suffering from the coming of the COVID-19 pandemic. It has effectively shut down various parts of the cities and properties, affecting the economy severely. Maxwell Drever shows that around 90% of hotels went unoccupied, and thereby there was no return on investment during Covid. Hence, since March 2020, the hotel industry has lagged majorly.
In this scenario, renovation and repairing the hotel rooms and transforming them into residential units was the only way to grab revenues. To ensure that the people experiencing homelessness get a shelter, various housing departments and Urban Development boards came together to promise a better future.
The conversion of underused hotels into residential units is an option for developers and hotels. These projects you see in front of you are barely 50% of what is required. Hence, more new projects must be underway to curtail this eviction issue.
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