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From hotel to affordable rental housing Experts say now’s the time to consider converting your asset by Erin Ruddy While demand for multifamily housing remains relatively robust, COVID-19 continues to devastate Canada’s hotel sector with Altus Group reporting a 90 per cent drop in revenue since the state of emergency was declared in March. Given the uncertainty of the travel and tourism industry and Canada’s pressing need for affordable housing, could converting hotels into multifamily rental apartments serve as an effective solution?
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aiser Mian, Senior Director, Hospitality and Senior Housing at Altus Group, is one of many experts who believes that it could. “Although the long-term prospects for the Canadian hotel sector remain positive, COVID-19 has impacted the industry severely with fewer than 50 per cent of hotels now open during the peak travel summer months,” he reveals. “In the absence of this crucial summer revenue, combined with the possibility of a prolonged recovery period and increased operating costs, hoteliers, like many small business owners, must make the assessment as to the long-term viability of their operations.” 20 | Canadian Apartment | Part of the REMI Network |
And the novel coronavirus isn’t the only force creating waves throughout the sector. Videoconferencing and virtual meeting apps intended as interim solutions during the lockdown period have potentially reduced the need for business travel. Furthermore, fears surrounding exposure to illness and the aggravation of adhering to strict isolation rules are keeping most leisure travellers from venturing too far abroad, at least until a vaccine is in the picture. By contrast, the pandemic has shone a spotlight on housing need, with most jurisdictions in Canada continuing to search for affordable solutions. As Mian points out, converting hotels into
