Q. Can hotels be effectively renovated and repurposed for assisted living senior housing?
A. Yes, but this conversion strategy requires the appropriate due diligence and is not without challenges and potential pitfalls.
Due to the ongoing pandemic, many hotels have been underperforming or have gone out of business. As a result, developers/owners are searching for alternative uses and see an opportunity to convert these hotels to senior housing.
The design and layout of suite hotels are similar to that of assisted living communities. They have similar core infrastructure areas, a kitchen, dining area and other common areas spaces and amenities. Although built to similar building codes, however, hotels may not fully conform to life safety codes, state licensing or zoning requirements. Therefore, resident living suites may need improvements such as showers instead of tubs, kitchenettes and accessibility for disabled individuals.
Due diligence will be required to verify development, demand and financial viability. For instance, will there be demand for new assisted living that will support the pricing needed to cover the capital costs of the retrofit and ongoing monthly operating expenses?
Having the right team of experienced development and operating partners will ensure that the resulting new product will be competitive, appropriately priced and properly positioned within the existing and potential emerging new assisted living communities in the market area.
Jim Moore’s column, “You’ve Got Questions? We’ve Got Answers,” appears in every print issue of McKnight’s Senior Living.
Moore is president of Moore Diversified Services, a national senior living and healthcare consulting firm based in Fort Worth, TX, that has been serving clients for 50 years. He has authored five books about senior living and healthcare, including “Assisted Living Strategies for Changing Markets” and “Independent Living and CCRCs.” He has published senior living monthly columns for the past 28 years. Jim Moore can be reached at (817) 731-4266 or [email protected].
