Some hotels could pivot to multi-family rentals

With hotel revenues crashing and travel and conference restrictions expected to linger, now could be a prime time to consider transforming a hotel to rental housing, analyst says

A dramatic plunge in hotel revenues due to COVID-19 and a subsequent demand for subsidized housing has opened a window of opportunity for some hotels to convert to multi-family rentals, according to an Altus Group analyst.

In March, Canada’s hotels experienced a 90 per cent drop in revenue as occupancy plummeted to less than 5 per cent nationally, reports the Hotel Association of Canada.
Things have improved since, but CBRE Hotels is forecasting that Canadian hotel revenues will be down 50 per cent this year and will remain at less than 20 per cent capacity in 2021… [Read More]