Multifamily investors are finding tremendous opportunity converting extended-stay hotels into apartments. David Reina recently spoke to GlobeSt.com noting, “The biggest reason for this trend is the confluence of strong demand for apartment units, which is caused by numerous issues that have been percolating for years across the country, and reduced demand for hotel units, which was caused mostly by the pandemic.”
Extended-stay properties are a natural candidate for an apartment conversion, according to Reina, because the layout already supports apartment unit necessities and utilities. “Extended-stay units already have the layout and amenities needed for an apartment unit, namely a suite configuration with kitchen space, so the physical conversion into an apartment unit is less time consuming and expensive.”
While there have always been hotel-to-apartment conversion projects, they have not happened before at this scale. While Reina says that it is hard to predict the future of hotel-to-apartment conversions, he agrees that the redistribution of demand is a good indicator that this is a longer-term trend.
Read the full article here.
