Hotel conversion is a solution to the affordable housing crisis – a Maxwell Drever evaluation

Hotels to residential unit conversion have gained prominence amid the health crisis and have proved to be a viable investment option. While the thought of transforming the hotel into a residential unit is not a new trend, it gets accelerated in times of monetary hardship introduced by the post-pandemic scenario.

Converting distressed assets into the residential unit is a viable way of addressing housing affordability issues in the long run. However, different individuals have unique approaches to making this move successful. Remember that a lot of planning and its due execution is necessary to ensure that the transformation is worthy. Hence, every section of society must realize this pressing problem of the economy and come forward to help the workforce population. 

• Why consider the hotel to residential unit conversion? 

It’s believed that hotel conversion into multi-family unit conversion is a viable investment strategy. In the real estate industry, the housing issue is a growing problem. Since the gap between demand and supply is expanding every year, there is a need for resident-centric philosophy. Remember that it provides the foundation for this conversion process.

Housing affordability is a significant question for the workforce population. They have an area median income of 60 to 120%. They cannot spend more than 30% of their income on paying rent. They do not have the aids to cater to their requirements. Hence, Maxwell Drever states that hotel conversion is the only way to deliver attractive and sustainable residential options creatively. 

• How typical is the conversion process? 

From experts to policymakers and NGO volunteers, everybody is interested in this topic of affordability. It’s not as typical as most individuals may think. The strategy is creating headlines and is leading groups to initiate talks on this matter. By successfully executing the conversion process, they are trying to counter this nuisance of the affordability problem. 

• What take to secure finances for the project? 

A significant area to bring under deliberation is the smooth availability of resources. If you look at the past few years, you will see that limited financial resources are the primary reason the real estate sector lagged. As a result, today, you have a new approach among different sections of society. They are trying to educate the community on the issue of affordability. 

Along with this, today, you have a distinct landscape. As Maxwell Drever illustrates, conventional construction lenders, real estate investors, and developers have become proactive and purchase properties and convert them to ensure better returns. It is certainly helping the community at large and these individuals in particular. 

From the investor’s perspective, investment in this sector ensures promising results. If you want to get better returns, you must ensure that you serve the target audience. When you focus on the transformation, there are multiple factors to bring under deliberation. From the appropriate location, availability of basic amenities, and staff members, you have to pay attention to the overall layout and the local building codes and regulations.