Empty Hotels Are Being Reimagined as Tiny Apartments
Empty Hotels Are Being Reimagined as Tiny Apartments
The hospitality industry has been hard hit in the pandemic, as shutdowns and the lack of travel have prompted a surge in vacancies. But investors are swooping in to buy hotels and reimagine them as more than just short stays.
Instead, hotel conversions are becoming a bigger business as investors look to buy hotels and turn them into rental apartments. Investors are buying struggling or foreclosed properties at bargain prices and “looking to profit from rising demand for cheap housing from households forced to downsize during the recession,” The Wall Street Journal reports.
Nearly 20% of hotels with securitized mortgages are delinquent on their loans, as of November, according to data from Trepp LLC. That is up from 1.52% a year ago.
“We consider ourselves a building recycling company,” Dan Norville, president of Vivo Living, told The Wall Street Journal. Since the pandemic, Vivo Living has been working on three hotel conversion projects in Mesa, Ariz.; South Bend, Ind.; and Winston-Salem, N.C. It plans to buy a fourth hotel in San Antonio, Texas, early next year.
Extended-stay hotels are ideal for turning into apartments, Elan Gordon, principal of SHIR Capital, a real estate investment company, told The Wall Street Journal. The firm has converted hotels into apartments throughout South Carolina and Texas. Extended-stay hotel units already have kitchenettes built into them, he notes.
But these types of conversions can take time, as they sometimes require zoning changes. Also, hotel rooms are usually not large enough to be qualified as a housing unit under most current zoning laws and must be adapted.
Source:
©National Association of REALTORS®
Reprinted with permission
admin
For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.
Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.
Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.
When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.
For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.
