Planning to Convert a Broken Hotel and Convert It into Workforce Housing. Not everything that happened during the pandemic outbreak is about the crisis. There have been signs of hope as well. Despite the global crisis that the pandemic has resulted in, there have been new investment scopes in the real estate domain. And if used correctly, such opportunities can help in enhancing the availability of low-cost housing units for the workforce population. And it can bring down the housing crisis to a great extent, not overnight, but gradually.
Maxwell Drever says that the hotel industry witnessed a great loss because of the pandemic. And as the vaccination drives become strong, the government has eased pandemic restrictions in many places to generate economic revival. Hence, the hotel industry has a hope to revive as well. However, some hotels will take as much as two to three years to make sure that it recovers completely. And this has made many hotel owners decide to transfer their property to developers so that it can get converted into housing units for the workforce solution.
The conversion of the distressed hotels and motels
Converting distressed hotels and properties into affordable workforce housing is not easy. It comes with a set of challenges. And to move over these challenges, it is necessary to involve many agencies at a local, state, and federal level. That will ensure in the smooth transition of the unused hotel into a multi-family unit.
Most hotels have structures similar to accommodation. Hence, there need to be slight modifications in the amenities that a hotel owner wants to provide to the workforce population by converting his property into a low-cost apartment. When the hotel owners cooperate with the concerned and relevant authorities, the construction expenses tend to be lower. And that in turn, ensures that the low and middle-income group can afford the rentals and stay in a secure home.
The reduced ownership expenses
A plausible way to make sure that the costs are less is to ensure complete utilization of the overall hotel space. It enables architects and developers to come up with more units to reside which can provide a space to live to the people who are homeless and have a low income. However, there is a need for government subsidies here. Besides the property developers and investors, the expert architects have an essential role in assessing the hotel property. They help in arriving at the final decision of whether the property is stable and robust enough for the conversion. After the conversion, the low-income population can avail the living space, which is less by 20% in comparison to the house rents that are prevalent otherwise. Maxwell Drever highlights that because hotels have a similarity with an accommodation, the conversion efforts are lesser than developing a new house. However, there is a need for correct property assessment by expert architects, property inspectors, and developers to recognize the scope and magnitude of the project. It will ensure that the conversion process gets executed seamlessly and the project commences with much ease.