The pandemic outbreak has negatively impacted the global hospitality sector. And that made hotel owners search for ways to use their properties better says Maxwell Drever. One of the smart moves that most hotel owners made was to transfer the property to a developer that would convert it into an affordable housing unit to remedy the housing crisis. And this conversion allows the hotels to maximize their revenues. Simultaneously, it also helps to solve a bigger problem.
People from professions like trading, teaching, and firefighting find it challenging to pay their rent. Also, the housing units near the work location have high costs, and it becomes challenging to rent them. Hence, these professionals have moved away from prime locations and settled in the urban sector fringes.
The crucial role of the new-age hotel owners
According to Maxwell Drever, hotel conversions are always beneficial. It helps the property owners to start earning and gain profits. Additionally, it is also a solution for those who belong to the low earning bracket as it provides them a house. The people who belong to this group come from various sectors and find it challenging to get housing. Hence, the brand-new affordable housing projects help to address this issue. By converting the hotels into affordable apartments is not easy. As there is a difference between home and hotel planning. It can help people with affordable living units. Hence, it needs ample execution and planning.
The concern of affordable housing is a social and economic problem today. And if you refer to the latest reports, you will know that several individuals have a chance to get evicted. The reason is that they end up spending over 30% of their earnings on house rent.
The government intervention
The sudden pandemic outbreak has affected the business and travel section and most industry sectors in the economy. According to the statistics in hospitality, the western economy has witnessed an increase in the affordable housing demand. Also, the private-public partnership is progressing and is generating channels to resolve this issue.
According to Maxwell Drever, this has provided the necessary impetus to convert hotels to affordable housing units within less time. For a while, the hotel industry was at a loss, and today it is transforming its rooms to develop a living space, kitchen, and bathroom to resolve the housing issue.
Last but not least, governments worldwide have introduced incentives, subsidies, and other tax benefits for real estate agents and investors. Today, they are also offering tax advantages to the people who have engaged in affordable workforce housing projects. Therefore, it acts as a boost for this entire conversion process. Also, the firms are seeking assistance from the regulations and rules and leveraging it completely. And for this, there is an effortless execution and operation of such projects. Hence, it has become essential to propagate housing projects. It is because it has the potential to assist various parts of society through multiple mechanisms. That is not all. The affordable workforce housing can also lead to better economic and social development.