In Some Regions Distressed Hotels Being Bought Pennies On the Dollar for Conversion

Diana Olick wrote an article Feb. 4, 2021 citing the affordable housing stock now 96-99% occupied, while in some communities many hotels are sitting empty due to the pandemic, with 18% behind on their mortgages as of December 2020 as compared with only 2% the prior year. Developers are taking advantage of this, purchasing distressed hotels at bargain prices, then renovating them into affordable housing. I don’t think that will be so easy to do if the office industry becomes impacted, and can you imagine cruise ship conversions to low-income housing? (just joking…or maybe not…)