Reasons to Convert Closed Hotels into Affordable Workplace Housing

Workforce housing is a great initiative that has been working to provide affordable housing to middle-income households. However, the issue is that there are limited housing opportunities that can be reworked into workforce housing. To add to that, the number of eligible people for the workforce housing programs is increasing by the day. Hence, there is a significant difference between the demand and the supply.

The number of troubled deals hasn’t come anyplace near the level seen during the Great Recession, NAR’s report says. Troubled deals because of the COVID-19 pandemic have added up to $684 million, simply a 10th of the $6.7 billion in upset deals during the Great Recession.

The hotel business is probably going to encounter sensational changes in the years to come, regardless of whether it’s from troubled inns being diverted into reasonable lodging or from a resurgence of movement following a time of pandemic-actuated detachment. Whatever we do, we shouldn’t limit the chances this space gives.

Can Closed and Distressed Hotels be The Answer?

As the COVID-19 pandemic hit the world, it prompted stay-in-place orders. This also leads to extreme restrictions on travel, causing a lot of hotels to suffer. Hundreds of millions of rooms remained empty in 2020.

While the travel restrictions have softened significantly, the hotel business still hasn’t revived. In fact, some hotels even closed down permanently during the pandemic and currently see no chance of starting again. Even several hotels that are still in business are seeing less than 50% occupancy.

According to Maxwell Drever, converting these old abandoned hotels into workforce housing can solve two issues at once. Here are some reasons why converting closed hotels into workforce housing can be beneficial for a lot of people.

Can Decrease the Difference Between Demand and Supply

As discussed earlier, the biggest issue that the workforce housing programs face is the difference between demand and supply. There just aren’t enough places to accommodate everyone. Hotels have a large number of rooms that can be repurposed to accommodate people. This can significantly increase the number of houses that are free to accommodate people.

Doesn’t Require Much Effort

Hotel rooms are already designed to provide a comfortable stay for their guests. Almost every hotel in the world has a bathroom connected to it. In fact, some hotels even come with a kitchen. All in all, it wouldn’t take a lot of effort to turn these hotel rooms into a suitable place to live for people looking for affordable housing.

Conversion Process

Adding to the previous point, the conversion process is also fairly straight forwards. To convert an old hotel into an affordable housing, the original hotel structure would have to be stabilized. In case the hotel needs renovation, the process is then initiated. Depending on the need, the structure is either repaired or replaced.

Overall, converting old closed hotels into affordable housing is one of the best steps that can be taken to improve the economy of the country and may even help fix the economic crisis – especially after the COVID-19 pandemic.

For more information about workforce housing, stay up to date with Maxwell Drever.