Peoria, IL · Member since 2021 · 20 posts · 14 votes
Has anybody done a conversion from a hotel to multi family? There is a 96 room hotel for sale and I was just wondering if anybody has done it and if it something to pursue!
There are definitely people doing this. We have come across quite a few in larger markets. It seems like a decent way to increase the quantity of C Class properties if it is done right. I would be interested though if the returns are still there with the cost of materials lately.
There are definitely people doing this. We have come across quite a few in larger markets. It seems like a decent way to increase the quantity of C Class properties if it is done right. I would be interested though if the returns are still there with the cost of materials lately.
Investor · Charlotte · Member since 2021 · 24 posts · 11 votes
5y
@Cedric Volkmer -Like that you're looking outside the box....Hotel conversions are tough, because of the building layout and in most cases the location. If you're in Manhattan then the building layout looks just like other available products. The conversion, assuming the cap ex doesn't kill your returns, and the underwriting checks out....yea you could have a good repositioning plan. But if it's in the outskirts of Dallas it could be hard to reposition the hotel to a NOI producing investment. I could write a book on the reply but reach out directly if you have any specific questions.
Anderson, SC · Member since 2021 · 8 posts · 14 votes
5y
It all depends on where the property is located and what your tenant profile is. If they hotel was near a college, then possibly use as student housing... In a city center, maybe long term corporate clients.. In a C or D area, then a pay by the week sort of place.. For the last if you keep it as a hotel, it would make evictions easier, just costs a little more ad far as taxes and fees go..