Maxwell Drever on the opportunities for converting hotels into affordable workforce housing
Since people all across the globe have endured the most challenging year of recent history, they now understand the significance of human life. After facing these difficult times, a silver lining has appeared in the economy in general and the real estate sector in particular. Although the challenges have changed the competitive landscape of every aspect of the economy, various homeowners and hotel owners are pausing to evaluate the available opportunities.
Although all sections are affected by the worldwide pandemic, the middle income and lower-middle-income group individuals have faced the direct impact. They are finding it hard to afford reasonable housing for themselves. Hence, other sections of society have come forward to help them out by converting their properties into affordable housing estates. There are two ways they are helping first, by converting hotels into affordable housing, and second, by converting properties into rental apartments. It has helped the hotel owners to capitalize on the unprecedented demand. They also take help from the federal programs announced by the government.
Conversion of hotels has resulted in long-term returns, suggests Maxwell Drever
Yes, the conversion of hotels into affordable housing is beneficial for the workforce and the owner. It is because the long pause in the functioning of the hospitality sector is given a break by way of their conversion. By providing apartments at affordable rates, they have increased their revenues to a level.
Moreover, they have a built-in purpose, which is the augmentation of resources, says Maxwell Drever. Since the pandemic had limited immigration, it had halted the functioning of the hotels. The unprecedented situation resulted in a vast loss. For normalizing this factor and regaining strength, the hotel owners have tried to come up with a unique policy. That is the conversion of their properties into affordable housing estates for the middle-income groups. However, conversion is not an easy task. Various policy options provided by the federal government have given a boost to this process, though.
If you look at survey reports, around 45% of hotel owners have an interest in converting hotels into rental apartments. Moreover, investors are also finding it interesting to invest their money in the real estate sector. It is because the industry is facing a boom that is providing feasible revenues for the same. Taking a look at the analysis, you will understand that residential options cater to a specific market. That is, individuals who belong to the workforce. These individuals come from the professional background of different levels. They are always on the search for rental apartments close to their job location. Hence, it has given an impetus to the current market demand, added to the sector profitability, resulted in a competitive landscape and regulatory controls.
Hence, one thing is well-established: the collective effort by different sections of society towards helping the middle-income groups. However, market feasibility, site suitability, and physical feasibility are critical factors to contemplate while converting a property into affordable housing. According to Maxwell Drever, legal regulations, suitability of space, and building protocol or building codes are other areas to examine.