The idea of transforming hotels into residential units is not new. However, today the idea has gained immense popularity owing to the post-pandemic scenario says Maxwell Drever. The nationwide shortage of affordable residential units has reached a breaking point. It has become an acute problem in urban city centers. Along with this, the homelessness crisis ravages different countries in the western world. As a result, various state and federal governments are redrawing their housing policies to ensure better conversion and a smooth supply of affordable residential units. To overcome the impact of the pandemic, various hotel owners are transforming their properties into residential apartments to bring in more revenues and solve the issue of eviction.
Why hotel conversion?
The worldwide pandemic has halted the economy in multiple ways. The average hotel occupancy rate has reduced to 40% from 80%. Along with this, around 25% of hotels were on the verge of closure. As a result, most of them decided to close down their operation. Meanwhile, the national shelter policy has gained prominence because of the high cost of housing and the increasing role of the real estate sector. In this scenario, hotel-to-housing conversion comes as a ray of hope.
Repositioning hotels to address the housing shortage
Every housing type contributes to addressing residential affordability in the western world. Hence, various national and state agencies are encouraging the hotel to housing transformation. Based on the size, location, and configuration, several hotel types like limited service, mid-range, and full-service hotels are better suited for the conversion. It is thus making sense to convert hotel rooms and small portions of the hotel into residential property, believes Maxwell Drever. It adds to the financial stability of the hotel owners and provides emergency shelter to the community.
Building code consideration
Building codes, structural provisions, and rules and regulations are obstacles to the conversion process. Hence, various national and state governments are altering their zoning provisions to ensure smooth transformation. They are working on design considerations and recommending policy measures to promise a better supply of affordable residential units.
By analyzing existing units and room layouts, hotel owners are trying to understand what it takes to transform hotels into residential units. They are also trying to examine the parking requirement with other implementation schedules to ensure that the final product is eye-catching and appealing. Lastly, Maxwell Drever elucidates that hotel owners are undertaking entitlement considerations like land use, zoning ordinances, automobile parking, open space, and green plants.
Apartments and hotels get constructed differently. Their structural requirements and overall layout are distinct. Hence, hotel owners have to upgrade the structure to ensure a home-like environment exists. In terms of building codes and construction type, hotel owners have to work on the structural system. To safeguard the reconfiguration is worthwhile. Also, they must introduce flexibility in the overall plan to include last-minute changes. By working with city councils and local municipal corporations. They are working on new permits and area development plans to address this problem of homelessness.