The pandemic outbreak was sudden and devastating for the economy. And it has had an adverse impact on the hotel industry. The travel restrictions and stay-at-home orders have sealed the fate of several hotels. Many hotel owners declare that they will shut down several hotel branches because they don’t anticipate business or profit from it in the coming years. And the housing crisis has been ongoing and became worse due to the pandemic. At the same time the hotels have witnessed a new lease of life. Today, several apartment developers, investors, real estate groups, and other authorities have shown interest in broken hotels and are planning to convert them into housing units for the workforce population.
The essential points to consider
While such a conversion process sounds useful and points towards a solution for the homeless people and workforce population in the United States, the project needs to be implemented carefully. Maxwell Drever shares a few factors that are essential to consider for this conversion process:
- Is there an existing demand of housing in the hotel location?
Usually, most hotels in the urban areas are centrally located. That means, it is strategically located at a place that is well connected and has all the city amenities near to it. Here the developers need to research and find out whether the area has a demand for affordable housing! If yes, then converting the hotel into a low-cost housing unit will ensure that it has a ready audience for use and bring in profits. Most workforce wants to stay at a place that is near to their workplace. If the hotel fulfils this requirement, then it will prove to be a great solution for the workforce population.
- Is everybody clear about the objective?
An affordable housing development project is a combined effort. It means it usually involves the hotel owner, real estate companies, developers, architects, government agencies, non-profit organizations and others. It is essential to make sure whether everyone is on the same page about the project. The objective here is to resolve the issue of homelessness and lack of affordable homes for the workforce population. That means it is a social initiative that can lead to lucrative scopes later. Hence, the authorities need to keep the primary objective in mind and go ahead with the project to avoid confusion and conflict.
- Is everybody on board with the project?
According to Maxwell Drever, it is one of the most important factors to consider. And here, he refers to the sanctions, permissions, and approvals that are required. Converting a hotel into a low-cost housing apartment doesn’t just require the permission of the hotel owner. It needs other approvals as well. Certain government sanctions are required along with local rules that are essential to cater to. If there are any issues with this process, it’s essential to resolve this and then commence the project to avert further hindrances.
These are some of the essential points to consider when a hotel gets converted into a low-cost housing unit.