Due to the COVID-19 outbreak, private and public buyers are finding real estate investment conversion opportunities among U.S. hoteliers who are constantly evaluating the best possible use of their buildings.
For years, buyers, along with other stakeholders, have sought out older hotels as a way to get a ready-made building that can be used for a variety of purposes including condos, affordable homes, housing. for students and assisted living facilities. Some have been successful in converting hotels to other property categories, but due to the financial pressure that the epidemic has placed on hotel owners, interest in redeveloping existing hotels for alternative purposes has subsided. increased over time.
Condominiums, inexpensive housing, student housing, including assisted living facilities, have been long-standing choices for investors.
During the outbreak, however, conversions gained popularity, often overtaking established hotel investors. Alternative use investors in the United States are pushing prices up to 35% above traditional levels. According to expert analysis, the aggregate market value of properties sold for conversion over the next five years will be between $ 25 billion and $ 30 billion.
It is not always easy to convert these attributes. Galen and maxwell Drever enlisted the help of architects from the housing and hospitality studios to study what constraints and limitations should really be considered as part of the due diligence process when evaluating possible conversion assets. . In addition to planning criteria such as permitted uses and parking minimums, each property should be assessed on its own merits, taking into account factors such as layout, amenities, and jurisdiction regulations.
Follow the rules
Technical and building codes are the subject of the next level of study, says Maxwell Drever. Many codes and accessibility criteria are largely compatible between the two applications. On the other hand, the differences in legislation between accommodation and hospitality could have a considerable effect on the practicality of the conversion. For example, transforming every non-accessible hotel property into a suitable unit would be expensive; although this could be accomplished on a case-by-case basis, the code’s objective can be achieved without straining the budget.
Addressing the housing issue will require new ways. Designers, developers, communities and authorities should collaborate and innovate to bring market relevant residential properties to market, which will increase housing affordability. Fortunately, there are already shining examples of this paradigm in the works.
Years of experience
Converting a hotel into affordable accommodation is something that requires specialization and an approach that could save a lot of money. Only experts with years of experience who know what they are doing every step of the way can help you with these projects. Turning these structures into affordable housing is a great idea, but doing it requires almost different levels of skill as well as creativity.
Galen and Maxwell Drever have the opportunity to use every square inch of hotel premises to turn the space into a great affordable housing project.