Hotels Are Becoming Apartments… Fast. Here’s Why
America’s housing crisis has sparked a wave of innovation, and one of the most surprising solutions is happening in buildings we’ve stayed in for decades. Across the country, hotels are rapidly being transformed into apartments, reshaping urban landscapes far faster than traditional construction ever could.
What started as a temporary, pandemic-driven survival tactic has now evolved into a nationwide movement, adding thousands of housing units to supply-starved cities.
The Post-Pandemic Pivot: When Empty Rooms Became Opportunity
When the pandemic hit, hotels were among the hardest-hit sectors. Travel halted, tourism vanished, and thousands of properties sat half-empty. Owners scrambled for options as revenues collapsed.
But developers noticed something important:
Hotels already come equipped with the expensive infrastructure needed for residential living, plumbing systems, corridor layouts, elevators, fire safety systems, and strong structural frameworks.
Instead of waiting for travel to bounce back, converting these underperforming hotels into housing became the faster, cheaper, and more efficient solution.
Even better, developers could avoid:
- Multi-year zoning battles
- Lengthy environmental reviews
- The skyrocketing cost of ground-up construction
A hotel conversion could be completed in months, not years, solving both hotel vacancy issues and growing housing shortages.
Housing Crunch Meets Creative Solutions
Cities across North America are struggling with affordability. Inventory remains low while demand continues to rise, leaving renters and buyers with limited choices.
Hotel conversions offer three key advantages:
1. Speed
Developers can deliver hundreds of housing units in a fraction of the time required for new builds.
2. Cost-Effectiveness
Repurposing an existing structure eliminates major construction expenses like foundations, framing, and utilities.
3. Prime Locations
Hotels are often situated near transit, employment hubs, and essential services making their conversion ideal for urban living.
New York City stands out, with multiple hotels transformed into thousands of rental units. This isn’t a niche trend anymore, it’s a mainstream housing strategy gaining national momentum.
Real-World Transformations Across the U.S.
The conversion movement is unfolding across several major markets:
Houston
A former Four Points Sheraton was repurposed into a micro-unit rental community, turning compact hotel rooms into efficient modern living spaces.
Los Angeles & Denver
Former Holiday Inns have been redesigned into full-scale apartment complexes. Developers kept the structural bones but updated interiors to meet residential standards, proving that large-scale conversions can be both fast and functional.
These examples show how cities can activate underused buildings to ease pressure on housing supply.
Beyond Hotels: Adaptive Reuse Is Taking Off
Hotel conversions are part of a much bigger story, adaptive reuse, where outdated buildings find new life.
One striking example comes from Pennsylvania, where three millennial entrepreneurs purchased an abandoned high school for just $100,000 and transformed it into 31 apartments. The project wasn’t a hotel conversion, but the message is the same:
Existing buildings can solve today’s housing challenges faster than waiting for traditional construction to catch up.
Impact, Promise, and Limitations
Hotel-to-apartment conversions are a meaningful contribution, but not a complete fix, to America’s housing crisis. Still, their impact is undeniable:
- They revive vacant or underperforming properties
- They inject much-needed units into tight markets
- They help stabilize neighborhoods facing decline
- They offer a sustainable alternative to demolition and new construction
The bigger takeaway?
Creativity matters. Cities don’t always need to build from scratch sometimes the answer is already standing on the corner.
Disclaimer
The information presented in this article is based on our research and analysis of publicly available sources. While we strive for accuracy, readers are strongly advised to conduct their own independent research and verification of facts presented here. We make no claims regarding the complete accuracy or completeness of the information provided and hold no responsibility for any inaccuracies in the researched information presented in this article. Always consult with relevant professionals, including real estate experts, housing policy specialists, and local authorities, before making decisions based on information contained herein.
Sources
- Glendale Cherry Chronicle
- Urbanize
- CNBC
