It is possible to convert a hotel closed during the pandemic due to decreased occupancy rates into a beautiful new and affordable workforce housing complex says Maxwell Drever. A space like this has the potential to house hundreds of families. And with rental costs starting at $500 per month, the flats are affordable for almost every full-time worker in the United States. But there is more, as these facilities often come with amenities such as spa-style luxury pools and sophisticated gyms.
Why conversion is a positive.
From the hundreds of apartments created by a new affordable workforce housing complex to the money saved by converting the original hotel instead of building a new structure from the ground up, the financial benefits of conversion offer developers and their investors the opportunity to achieve above-average investment returns.
Maxwell Drever says that affordable workforce housing-style apartments offer incredible value, beginning with the fact that they frequently are situating in desirable parts of the cities they inhabit, with rents that often are less than half of market value. With the current reality of closed hotels scattered across the nation, values like this currently exist in every US city.
Conversion is not simple
After the structure of an old hotel checks out. It’s time to repair and or replace key infrastructure, So begins the analysis of all things mechanical and electrical. Then it’s time to check the plumbing, doors, roof, fire escapes, fixtures, elevator and shaft, stairwell, walls, ceilings, partitions, frames and so much more.
Can tax credits be acquired?
Tax credits acquired from the community where an old hotel sits can increase the profitability of a project manifold. Maxwell Drever says the potential existence of tax credits should never dismiss without thorough research. When tax credits acquire, they more represent historical value, which brings up another point about conversion; extra care must be taken to make certain that anything of historical value preserve just as it was found. Paying this respect to the property will just be a small part of the contribution. To the neighborhood in which your new affordable workforce housing apartment complex will sit.
In addition to the profit potential and the beautiful spaces created for hundreds of tenants, another source gains priceless benefits. And that happens when hundreds of individuals become citizens living in their new communities. Communities that thrive take advantage of the opportunities to welcome every new citizen into their new town…and home.
Closed hotels provide the only profitable way currently available to create affordable workforce housing rental stock. Through this type of redevelopment, old hotels can be transforming. From vacant eyesores into active community assets once again, a win-win for all involved.