The downturn in the hospitality industry has inspired businesses and commercial property owners to find alternative uses for hotel properties. California-based Vivo Living is an example. The company is transforming hotels into apartment buildings and recently announced its 10th anniversary Reports. Vivo Living offers furnished and unfurnished units and amenities expected from a hotel stay, such as free Wi-Fi, pools, and gyms are retained.
“Vivo aims to reduce traffic, waste and sprawl by carefully choosing each location so that it is in close proximity to shopping, markets, entertainment and other necessities,” said Dan Norville, CEO of Vivo, in one Explanation. “We use buildings again and do not build from scratch.”
Hotel remodeling is becoming a popular trend
Private equity investment firm Pebb Capital and Maxwelle Real Estate Group have partnered to buy the Bancroft Hotel and the nearby Ocean Steps commercial building in Miami Beach, GlobeSt reports. The companies are planning to convert around half of the 100,000 square meters of indoor and outdoor space into a “Super Class A” office that will offer fitness / wellness as well as food and drinks for a high-end concept property used for commercial purposes.
“In the current marketplace, many property owners are finding that speed to market is imperative today,” John Cetra, founding director of CetraRuddy Architecture, which has remodeled more than 40 offices, hotels, industrial lofts and more, told GlobeSt .com. “Lead time is now a key factor, and many developers are looking for strategies to achieve successful conversions with minimal intervention. The most important evaluation criteria for these projects are floor plan and exit, existing pipelines, number and locations of elevators and availability of vertical risers, pipes or lines. “
“Companies are occupying multiple floors in hotels in real time as work / residence arrangements,” added Michael Silver, chairman of Vestian. “Citadel recently took over a Florida hotel that they converted into a trading floor. The trend towards converted use of hotels will continue to allow employees to work remotely. No longer as a hotel arrangement, but as an apartment arrangement or work-use arrangement. “
Shifting the purpose of hotels seems to be an ongoing move, at least as long as the COVID-19 pandemic affects the hospitality industry, if not longer. Earlier this year, the co-working space provider The Yard announced that it would turn around former Courtyard by Marriott Hotel in New York has been converted into flexible office space with 180 private offices, conference rooms and co-working spaces, while the fitness room and the rooftop bar of the former hotel will be retained as office equipment.
It makes sense to create new uses for hotels while the hospitality industry struggles, but it doesn’t make the process any easier. Cetra found that every project faces obstacles such as zoning and building regulations. The conversion must also be profitable for the business to be truly worthwhile.
“The project needs to be marginalized,” he told GlobeSt.
Joe Dyton can be reached at joed@fifthgenmedia.com.
