Developers around the nation had already begun converting Broken Hotels into Affordable Workforce Housing prior to the pandemic. But the platform for such conversions became far more powerful once it began in March of 2020. As occupancy rates fell, the hospitality industry reeled. But for those with experience in conversions of this type, an opportunity presented itself, offering a rare combination of financial viability and social value. This opportunity was not lost on long time impact investor Maxwell Drever. His three current Broken Hotel to Affordable Workforce Housing conversions are just the beginning of what he hopes will ultimately be thousands of projects underway around the US, both through Drever Atelier Partners of which he is Chairman Emeritus and through other companies owned by savvy developers who understand the opportunity the profit as well as societal potential.
Hotels are ready-made for conversion to affordable workforce housing
Hotel rooms have baths, kitchenettes, and bedrooms. They sometimes have living rooms and kitchens. They are literally ready made to be converted into comfortable apartments. Hotels all have lobbies that can be converted into common spaces. Many hotels have pools, gyms, and can be refurbished and turned into luxurious amenities. So, when a hotel becomes a “broken” hotel and carries these elements, an attractive candidate for an affordable workforce housing conversion exists. And when successful, luxurious living conditions can be delivered to individuals and families with lower incomes at costs as low as $500 per month.
From Broken Hotel to Affordable Workforce Housing.
Those developers who believe that converting a broken hotel into an affordable workforce housing complex is a simple process are in for a surprise. Because the fact is, prior experience is a must. Only the most talented of developers should attempt a project like this without having witnessed it being done beforehand. It is highly recommended that only the best area contractors be asked to join this type of project.
A thorough evaluation process
Before purchasing a broken hotel, a developer must ensure that it is suitable for conversion. A thorough analysis of the community where the hotel sits should be mandatory. Important factors to know are the town’s total number of employees, average income, population density, current and projected future demand for workforce housing, state and local codes, and other considerations.
Next up is the quality of the hotel and the grounds upon which it sits. This process begins with a thorough check of the hotel structure, including pipes, mechanical systems, partitions, and facilities. Doors, windows, and fire escapes must be checked to make certain they meet current code requirements. Finally, the land must be fully checked. From environmental hazards to original work on the hotel grounds, there is much work to do.
If all checks out, and a purchase can be successfully negotiated, a developer can move forward with peace of mind, knowing that his due diligence has turned up few problems and that a successful affordable workforce housing conversion proceeds.
