Assisted Living Motel Conversion
Contractor · 83805 · Member since 2020 · 20 posts · 3 votes
Assisted Living Motel Conversion
8 Replies
- Investor · CT · Member since 2024 · 10 posts · 1 vote11mo
1) get someone with experience on your team, an expert - verify their track record.
2) something invisible might be the politics of the town to get your permits and what ever else approved...
partner atleast with your first one with a seasoned operator.
- Contractor · 83805 · Member since 2020 · 20 posts · 3 votes11mo
Quote from @Peter Zynko:
1) get someone with experience on your team, an expert - verify their track record.
2) something invisible might be the politics of the town to get your permits and what ever else approved...
partner atleast with your first one with a seasoned operator.
The politics is a good point, I also have an operator already.
Something I cant seem to find is a fair lease price per room.
- 11moDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesThe reason it won’t work is that “low end” assisted living is not profitable. Medium and high end don’t want a converted motel - they want the latest Marriot Assisted Living building with class A amenities and a memory care unit next door if needed. Middle - lower middle are the last generation or two generations ago of these facilities rehabbed. Years ago there was an assisted living facility for sale that had been converted from a Holiday Inn. The seller had an asking price of $10 million. I bought it for $925,000 and sold it to a developer who knocked down the building and build an apartment complex.
Quote from @Joseph Bushnell:
This is a weird one for me, I have a friend that wants me to help him convert his motel "with restaurant attached" into an assisted living facility. Currently I am having a hard time finding reasons that it wont work and I feel like we are missing something obvious.
Any help would be great!
- Member since 2023 · 4 posts · 0 votes10mo
Quote from @Don Konipol:
The reason it won’t work is that “low end” assisted living is not profitable. Medium and high end don’t want a converted motel - they want the latest Marriot Assisted Living building with class A amenities and a memory care unit next door if needed. Middle - lower middle are the last generation or two generations ago of these facilities rehabbed. Years ago there was an assisted living facility for sale that had been converted from a Holiday Inn. The seller had an asking price of $10 million. I bought it for $925,000 and sold it to a developer who knocked down the building and build an apartment complex.Quote from @Joseph Bushnell:
This is a weird one for me, I have a friend that wants me to help him convert his motel "with restaurant attached" into an assisted living facility. Currently I am having a hard time finding reasons that it wont work and I feel like we are missing something obvious.
Any help would be great!
Do you think a Boutique Class A new build home model for 8 residents in a large metro area might work?
- 10moDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesI’ve seen those successful, at least short term. The problem always is that a lot is spent in building a “business”; i.e., marketing, sales, staffing, buildouts, specialized furnishings, compliance, licensing. After 5 years you no longer have the “newest, latest” facility, and you begin taking “insurance” tenants that pay, thru insurance a lot less than private pay. It’s at this point where you believe the appraisal that says it’s valued at $1.7 million, while nobody will pay over $850k for the property.
Quote from @Trey Freeman:
Quote from @Don Konipol:
The reason it won’t work is that “low end” assisted living is not profitable. Medium and high end don’t want a converted motel - they want the latest Marriot Assisted Living building with class A amenities and a memory care unit next door if needed. Middle - lower middle are the last generation or two generations ago of these facilities rehabbed. Years ago there was an assisted living facility for sale that had been converted from a Holiday Inn. The seller had an asking price of $10 million. I bought it for $925,000 and sold it to a developer who knocked down the building and build an apartment complex.Quote from @Joseph Bushnell:
This is a weird one for me, I have a friend that wants me to help him convert his motel "with restaurant attached" into an assisted living facility. Currently I am having a hard time finding reasons that it wont work and I feel like we are missing something obvious.
Any help would be great!
Do you think a Boutique Class A new build home model for 8 residents in a large metro area might work?
- Contractor · 83805 · Member since 2020 · 20 posts · 3 votes11mo
Thank you for the insight, my biggest concern is in fact the equity when it's done.
- 10moJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 625 posts · 455 votes
Converting a motel into assisted living can work, but it’s not as simple as repurposing rooms. The reason you feel like something is “off” is because assisted living isn’t just housing, it’s a regulated healthcare use, and that brings a completely different layer of requirements.
Here are the big pieces most people don’t realize until they’re too far in:
1. Zoning and Use Classification
A motel is typically zoned for hospitality. Assisted living is usually classified as a medical/long-term care use and often requires:
• A conditional use permit
• Public hearings
• Compliance with fire, accessibility, and staffing rules
Before you spend a dollar, confirm the municipality will even allow the change of use.
2. Fire & Life Safety Upgrades (This is where most projects die)
ALFs need:
• Full fire suppression (sprinklers)
• Commercial-grade fire alarms
• Wider hallways / ADA access
• Emergency egress and refuge plans
Most older motels fail these standards and require six-figure upgrades.
3. Room Layout Issues
Motel rooms usually:
• Don’t have enough square footage
• Don’t meet accessibility standards
• Lack appropriate bathrooms for assisted living care
You may need full gut renovations, not simple retrofits.
4. Staffing & Licensing Requirements
Assisted living is a licensed operation, not just a real estate play. You have to meet state-level regulations for:
• Caregiver ratios
• Meal service
• Medication management
• Training and background checks
If you’ve never operated an ALF, bringing in a licensed administrator early is a must.
5. The Restaurant Is Not Automatically an Asset
A lot of people think “restaurant attached” = built-in dining for residents. Not really.
You’ll need to confirm:
• Commercial kitchen compliance
• Health department approvals
• Ability to produce resident-appropriate meals
Restaurants and AL kitchens are not always interchangeable.
6. Parking & Accessibility Requirements Change
Assisted living often requires different parking ratios, van access, drop-off areas, and ambulance access. Motels rarely meet these without modification.
7. Operational Viability Matters More Than Construction
A converted motel only works if the operating numbers do.
• What’s the demand in your area?
• What’s the reimbursement (private pay vs Medicaid)?
• What’s the staffing cost?
• Who will run the facility?
The real risk isn’t the rehab — it’s running a healthcare business.
Bottom line:
It can be done, but it’s not a light remodel project. It’s a zoning/legal/licensing/operations-heavy conversion that requires architects, healthcare consultants, fire marshals, and an administrator involved from day one.
Before going further, I’d start with:
Zoning confirmation
A change-of-use meeting with the city
A fire marshal walk-through
A call with an assisted living licensing specialist in your state
Those four steps will tell you very quickly whether this is viable or a money pit.
- Boston, MA · Member since 2026 · 18 posts · 4 votes2d
I don't have a solid number for you on a per-room rate, so I don't want to just make one up and have it be wrong.
What I can say is that RAL leases don't usually get priced per room anyway, they're priced per property, often as a straight NNN lease where the operator covers taxes, insurance, and maintenance on top of rent. That's because the operator is the one collecting the care revenue per resident, the landlord isn't pricing rooms, they're pricing the building.
If your friend already has an operator lined up, the fastest way to get a real number is just asking what that operator currently pays at their existing location, or what they'd be comfortable paying here. That's an actual comparable instead of a guess. A commercial broker or appraiser who works senior living specifically in your market would be the other real source, not something a forum thread can responsibly hand you.
One thing that'll matter more than room count once this converts: how many licensed beds the state will actually let you operate in that footprint, since that's what the operator's revenue (and realistically what they can afford to pay you) is tied to, not the motel's current room count.
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