Transforming Hospitality: Kissimmee Leads National Trend in Hotel-to-Residential Conversions

A town near Orlando, Kissimmee has taken the lead in turning hotels into homes. They’re changing eight hotels into 1,888 apartments, focusing on affordable housing as a part of a national trend where old hotels are turned into apartments.

Last year, 36 percent of all converted hotels became homes, making 4,556 new apartments. That’s a 38 percent jump from the year before and almost double since 2021. This change shows how important it is to find new ways to use old buildings to solve housing problems.

In Kissimmee, they’re changing hotels into homes because the pandemic hit the hotel industry hard. Many old hotels were struggling, with fewer people traveling and high debts. For example, the Crown Motel is turning into 30 apartments, and another motel will house homeless people temporarily. These projects not only make old buildings useful again but also help people in need of homes.

Why It’s Happening

Across the country, more hotels are becoming homes instead of offices. This is because hotels are taking longer to recover from the pandemic than other businesses.

The national trend sees a 36% increase in repurposed hotels, yielding 4,556 residential units.

Also, laws like Florida’s Live Local Act give developers big rewards for building affordable homes. This helps developers cover costs and offer cheaper rents, which is important for middle-class people who struggle to find affordable homes.

What I Think

The rise of turning hotels into homes, especially in places like Kissimmee, shows a smart change in how we use buildings. It’s not just a reaction to the pandemic but also a way to fix housing problems.

Laws like the Live Local Act make it easier for developers to do this. While the focus is on affordable housing, it also helps towns look better and use old buildings wisely. But we need to watch how this affects local businesses and if it helps people find homes in the long run.

Michael Manua
Michael Manua
Michael, a seasoned market news expert with 29 years of experience, offers unparalleled insights into financial markets. At 61, he has a track record of providing accurate, impactful analyses, making him a trusted voice in financial journalism.
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