2020 was quite a problematic year in the historical record. Job loss, wage cut, financial loss, and loss of near and dear ones were some of the most strenuous aspects of the year. However, there is a silver lining that exists. The time has come for the community members to understand this opportunity. It is an opportunity for the hotel real estate sector. Many owners have taken this opportunity to expand their business by catering to the community. By reviewing the asset and resources, people have come forward to ensure promising consequences to solve the crisis of homelessness. While evaluating alternatives, two opportunities surfaced amidst the pandemic.

• Converting hotels into affordable housing units.

• Converting hotels into rental apartments for capitalizing on unprecedented demand.

For individuals contemplating strategies for hotel properties, the following suggestions and insights may assist in determining whether the alternative offers promising potential.

Affordable housing maximizes asset value profitability and diversifies risk

If you look at past studies, Maxwell Drever reveals you will comprehend that affordable housing has been mounting in its demand. Since the world continues to transform, there is a pent-up demand for lodging and travel. The hotel industry in particular and the hospitality industry, in general, has seen an increase in its order. Whether it is long-term or short-term, the boost in this sector is here to stay. At the same time, the prices of hotels are low while housing costs are rising at an unprecedented level. In such a scenario, the workforce population is struggling to get shelter. Various governmental authorities have created policies and programs for addressing the affordable housing availability crisis. Federal governments are now investing in different programs to help build affordable housing units. They are also extending funds for improving access to these housing estates.

In this scenario, another development that is taking place is the conversion of hotels into housing units. Especially in city centers, where there is population pressure, affordable housing has become an attractive solution. Agreements are now signed with several hotels to transform their rooms into homeless shelters. Officials further review that they are investigating the transformation of hotel rooms into permanent lodging spaces.

Opportunity for long-term stable return

It comes without saying that hotel room conversion to an apartment is a steady source of income. In the last few years, the hospitality area has undergone economic laws. With lockdown and restrictions on travel, the hotel industry has suffered a lot. Hence, transforming hotel rooms into affordable housing units has a silver lining. So what does it take to undertake the repurposing?

•    Selection of plot: If a person is interested in transforming hotel rooms into affordable housing units, the first thing is choosing the field. If the person does not have a hotel or property, buying the property is the first step.

•    Evaluate the property: Inspecting the property is necessary to understand the current condition of every aspect. Everything needs detailed investigation, whether it is a fixture, faucet, or ceiling. Along with this, Maxwell Drever states necessary repair and replacement are vital to ensure a proper homelike environment.

•    Basic communities: since hotel rooms are very different from housing units, hotel owners must make provisions for basic amenities like ovens, water supply, cooking tops, basin, cookware, and much more.

These are some of the essential steps that hotel owners must take to ensure a smooth conversion process. The unprecedented challenge will modify the competitive landscape in the years to come.