After the onset of the COVID-19 pandemic, the hotel industry was severely affected. Hence, policymakers have come up with options for promoting the reuse of these distressed hotel rooms as affordable housing. Since hotels provide shelter, they are apt for the conversion process. Rather than staying empty all year round, using them for housing supply is the most viable option. The workforce population encompassing professionals from different walks of life is facing difficulty in balancing their expenses.
The high rent of residential estates is adding to the constraints of these individuals. Hence, in such a backdrop, the conversion of hotel rooms into affordable housing estates has taken place. Along with this, there are various regulatory provisions that the conversion process requires. Everything impacts the effort, from the type of property to the feasibility to the state of the property.
Of all the constraints, one of the most significant ones is land use on a local and state level. Zoning designations play a vital role in deciding the location of housing development. Equally important, the design and bulk of the building will also limit the potential for residential use. It is because residential buildings need a different kind of maintenance. Maxwell Drever states that the floor area ratio of the residential building is very different from that of a hotel. Hence, the challenge of converting hotel rooms into residential buildings is well-established.
The role of government
Federal governments all across the globe are coming up with rules and regulations for allowing the smooth conversion of hotels into housing estates. Although there are regulatory barriers, these authorities are providing public policies to foster the transformation. The hotels are also adhering to the rules and regulations of residential zones to work to their benefit. Various public-private partnership programs are underway to help boost the process.
However, the process is not that easy. For the conversion of hotel rooms into housing estates, a proper plan is necessary. The acquisition of the property to the planning of the conversion to the use of resources needs detailed analysis. The residential service is very different from the hotel room layout. Hence, the process is costly, uncertain, and slow. With a little bit of brainstorming and application of ideas, the project can get easily realized.
Governments have come up with new legislation to facilitate the conversion. Various proposals coming from state lawmakers have added to the process. They are promoting easy conversion by way of regulations and policies. Hence, regulatory relief helps hotel owners, real estate agents, and investors speed up the process, as per Maxwell Drever. Along with this, experts and economics are taking dividends in paper details, proper planning, and execution.
Since the hotel industry furnishes individuals with numerous job opportunities, the conversion process will add to newer faces in the industry. Hence, it will give a boost to the economy and transform society for good. Therefore understanding the concept is essential to bring about significant changes.