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Workforce residences from hotel rooms the way Maxwell Drever investigates

Maxwell Drever

A brief look at the western world will reveal that different countries continue to deal with the COVID-19 crisis and the post-pandemic scenario. Of all the sections affected by the worldwide pandemic, the low and medium-income families are the worst hit. These individuals with an area median income of 60 to 120% rely upon affordable housing for their shelter says Maxwell Drever.

Affordable workforce housing comes as a solution to the city’s current housing crisis. The workforce population cannot spend more than 30% of their earnings on paying rent. The basic premise is compelling. Remember that the COVID-19 pandemic has forced the shutdown of various commercial establishments. 

Hence, the hospitality sector is also worst affected. In these strenuous times, the transformation of hotel rooms into residential units to cater to tourism, including business travel and international travel, has grabbed proper attention. These hotel rooms help supply temporary shelter to the workforce population in the city centers. 

The western hotel Industry is transforming  

A brief look at the hotel industry will reveal the COVID-19 pandemic has had economic fallout. Since March 2020, more than 700 hotels and 1,27,000 hotel rooms have gone unoccupied in the western cities. These numbers are enough to surprise individuals. Thus, Maxwell Drever holds that to ensure better business operation, the creation of quasi-residential apartments and affordable workforce housing from hotel rooms has become the new trend. It has provided shelter to more than 28,000,000 individuals and the need of the hour is to undertake more of these transformations. 

Workforce housing and its related benefits

As mentioned earlier, you can overcome the financial losses of the hotel industry through the conversion process. It promises a better return and an opportunity to grab more cash and revenues.

• Since April 2021, various hotels have tried to balance their expenses and income through these transformations. Some investors have bought properties to undertake the conversion.

• The financial distress has compelled them to do so.

• The market rate of housing has increased in leaps and bounds. The land-use policies and zoning programs have encouraged conversion and transformation into affordable housing. 

• Along with this, various investors are also interested in the conversion process and its related advantages. 

The increasing role of the private sector

The conversion of hotels into residential units is not a new phenomenon. It is a regular feature of the western real estate market. Maxwell Drever anticipates that a brief look at earlier statistics will reveal that housing plays a vital role for individuals facing eviction and homelessness in the commercial sector. Hence, additional efforts are underway to grab this opportunity and convert former hotel rooms into shelters.

Private institutions and non-governmental agencies play a vital role in creating medium apartments and shelters like workforce housing. They are also trying to protect hotel owners and the workers who have their jobs in the sector. Hence, hotel conversion helps hotel owners resume their work and cater to the workforce population in the post-pandemic scenario. 

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