Has anyone converted a hotel into MTR?

Question

I have an opportunity to acquire a smaller hotel (56 rooms) that needs a full renovation in a smaller market in Oklahoma (town of about 30k people). It seems like this door count wouldn't work well to convert it back to a standard hotel and I've thought about converting it to a MTR.

I see a lot of people do this with single family but wondered if there was anyone who has done a hotel conversion into a MTR.

Any help would be great!

I see a lot of people do this with single family but wondered if there was anyone who has done a hotel conversion into a MTR.

Any help would be great!

Andrew Bosco · Answer

What is the local economy like to support this? You should look at if the area could support this many hotel rooms as such. Can you connect with local businesses to establish partnerships?

Try these links to give yourself some data driven insight.

• Furnished Finder - General MTR DataFurnished Finder Traveler Search - manual way to see the competitionFurnished Finder Budget Tool - Good overview of market. Similar to A, but with stipend input
• Furnished Finder Traveler Search - manual way to see the competition
• Furnished Finder Budget Tool - Good overview of market. Similar to A, but with stipend input

• Furnished Finder Traveler Search - manual way to see the competition
• Furnished Finder Budget Tool - Good overview of market. Similar to A, but with stipend input

Corey Conklin · Answer

@Allen Duan

You are correct. To keep the same number of units as the existing hotel you would need to keep them all to studios. I'm not a huge fan of studios for LTR, they don't perform well at all in my area as there isn't a crunch on affordability like bigger markets.

I have also thought about combining some units to make them bigger but that is at the sacrifice of losing 15-20 units. I've tried underwriting it both ways but there isn't a close comp at all in the area I want to do this conversion so there isn't a great example to look at to see if it could work out.

If it's not something being done in bigger markets, it's probably for good reason and helps me understand what I'd be getting into and I'll need to continue to dig into it.

Allen Duan · Answer

I love this idea and have thought of doing something similar, like with a larger apartment building. I have the same concern as Andrew, is there enough demand for 56 MTRs? I assume they'd be studio units or 1 bedrooms. We're in Los Angeles and even here I'm not sure if I could fill 56 MTRs. You can consider setting a portion up as LTRs and finding the perfect balance between MTRs and LTRs.

Has anyone converted a hotel into MTR?

Has anyone converted a hotel into MTR?

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