NewGen Advisory, a full-scale hospitality brokerage, started a task force during the pandemic to help hotel owners and alternative use buyers with hotel conversions. As the new norms of COVID-19 took hold, they deployed a team of hospitality experts to engage with hoteliers and leverage relationships with municipal leaders, non-profits, and commercial real estate professionals. The NewGen Advisory task force curated buyers from other industries to purchase hotels primed for conversion.
Hotel conversion is repurposing a hotel to any use other than a hotel. The primary reasons for hotel conversion include cost efficiencies, speed to market and ease of adaptability. Hotel conversions also help communities as many are currently desperate for more housing. The pandemic has generated a dire need for transitional housing and emergency housing.
There are many areas of need, from traditional multifamily housing to affordable housing, student housing, and even veteran housing. Unfortunately, developers can’t deliver fast enough due to high costs. Where land, labor, and materials were expensive before the pandemic, expenses are even pricier now. With hotel conversions underway, developers hope to address the demand for housing.
NewGen has closed on multiple properties for hotel conversions intended as transitional housing for those experiencing homelessness. Their last two closings were hotel conversion projects in the cities of Tempe and Flagstaff to expand their housing and shelter options. The 44-unit Travelodge Hotel by Housing Solutions of Northern Arizona (HSNA) in Flagstaff. This new acquisition will provide those in northern Arizona, who have faced homelessness, with another choice for housing. The other is the 40-unit Rodeway Inn in Tempe. This acquisition will provide the City of Tempe with stability for people working with the city’s HOPE homeless outreach specialists to locate more permanent solutions for housing.
NewGen’s team, with three decades in the industry, has made them true experts in their field. Growing up in the industry, their extensive network and active involvement in hospitality associations have enabled them to continue staying ahead of this evolving industry and find sustainable solutions in times of crisis like today’s global pandemic.
More information about NewGen and hotel conversions can be found at https://newgenadv.com/.
About NewGen Advisory
NewGen Advisory is a nationwide hospitality brokerage firm with headquarters in Phoenix, Arizona, and offices in 16 cities around the country. NewGen achieves extraordinary results for buyers and sellers of commercial real estate with a team of hospitality experts.