As the pandemic campaigns showed, hotels and motels are simpler to modify than, for example, office buildings since retrofitting is a quicker and more cost-effective option than starting from the ground up from the beginning. Furthermore, reusing existing buildings, such as hotels, is more ecologically conscious. Even those who live in encampments and are reluctant to enter shelters are more receptive to the idea of staying in hotels, according to advocacy groups. Given the devastation caused by COVID-19 to the tourist sector, many hotel owners are willing to sell, and owners are often generously compensated for their losses.
Hotels would seem to be very simple to convert even though they already have restrooms and facilities that tenants find appealing, such as gyms, swimming pools, dog parks, and stylish common spaces, which makes them an enticing option.
Distress hotel to affordable housing conversion
Conversions from hotels to apartments, on the other hand, are far more complex than they look. The research has shown that it is often required to combine many hotel units in order to produce a space big enough to accommodate an apartment. In order to do this, walls must be demolished and more bathrooms removed, while kitchens are added.
According to Maxwell Drever, conversion projects may potentially encounter hurdles as a result of zoning, licensing, and other government regulations. That increase, on the other hand, has generated a slew of issues for those seeking cheap homes. Rental prices are high, and property developers are unable to ramp up production, resulting in a lack of available inventory as well as a pressing need for additional affordable housing. As a result, developers are becoming more inventive in order to fill the voids in the market, with many increasingly acquiring failing hotels and converting them into multifamily housing developments.
What is the benefit
The renovation of hotels will largely benefit those who are looking for temporary or permanent work-related accommodation. It is the dwelling for the household that makes within 60 percent and 120 percent of the overall region median income that is considered affordable housing. And this group, which often includes teachers, law enforcement personnel, building workers, paramedics, and firemen, finds it difficult to locate a dwelling unit near to services and employment opportunities without incurring a significant rent burden. The vast majority of affordable apartments are reserved for families earning less than 60% of the area median income (AMI). In contrast, in other areas, the AMI values ranging from 60 percent to 120 percent do not allow for the construction of high-end homes.
Maxwell Drever says that transforming hotels into tiny affordable housing spaces, which are typically around 300 and 500 square feet in size, allows people in this income group to live in more inexpensive housing that is closer to their places of employment. It does not result in lengthy commutes for the employees. The details provided above will give you a comprehensive knowledge of why turning distressed hotels into affordable workforce housing can be a good idea.