The coronavirus (COVID-19) pandemic has substantially disrupted the hospitality industry – historic low occupancy rates and declining revenues across all hotel segments have threatened the consistent operational viability of hotels and resulted in the closure of many properties. Hotel industry experts predict that the industry's recovery will take several years, and that a meaningful portion of the most impacted assets will need to find alternative sources of income or permanently close for hotel use.
Whether your particular situation is a temporary pivot to secure a new revenue stream, such as short-term dormitory use, or a permanent conversion to a new use, such as affordable housing, Holland & Knight's Hotel Conversion and Alternate Use Team is a dedicated multidisciplinary group of attorneys that have the depth, skills and knowledge to guide you on the transition, with substantial experience advising clients on all aspects of the development, ownership and operation of hotel and resort properties.
Converting a hotel asset on a temporary or permanent basis may provide financial relief or the opportunity to reposition an asset altogether, but any type of alternate use also raises a host of legal issues in a variety of related practice areas, including land use, zoning and entitlements, hotel management and franchise agreements, financing obligations, risk management and insurance.
Given Holland & Knight attorneys' deep experience in real estate, land use, hospitality and related industries, our Hotel Conversion and Alternate Use Team is actively assisting owners and operators in navigating a wide range of issues when it comes to transforming hotels to other functions. The range of alternate uses can include temporary use as housing for first responders, healthcare facilities or college dormitory space, a permanent conversion to a mixed-use development with partial continued hotel use, converting part of a luxury hotel to branded residences, or the complete repurposing to multifamily housing or co-living arrangements.
We take the time to understand each client's particular circumstances and can help them achieve the highest and best use for any real estate asset.
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