Changes in tourism and travel behavior and demand are prompting more conversions of hotels to apartments.
Hotel-to-apartment conversion projects are leading the way in the adaptive reuse sector, according to a RentCafe report. “Since these structures are already equipped with plumbing and electrical infrastructure, they offer redevelopers a faster and more cost-effective way to create new housing, compared to other methods.”
“Hotel conversions — such as ArtHaus Jack London in Oakland, California — make up the largest share of deliveries at 4,556 units, up by over 1,000 from the previous year,” writes Mary Salmonsen in Multifamily Dive. Overall, more than 151,000 adaptive reuse units are in development.
“New York City’s Manhattan saw the bulk of adaptive reuse deliveries in 2023, with 733 new units, every one converted from a former hotel. The majority of these apartments came from 525 Lexington Ave, which is now a 655-unit student property.” Los Angeles, with 5,881 units in the pipeline, leads the nation in adaptive reuse permits.
Read the full story: Hotel conversions take top spot in adaptive reuse
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