Hotel Conversions Reach All-Time High
By Todd Ragimov, DC In recent years, the hospitality industry has witnessed a remarkable transformation, with hotel conversions reaching unprecedented levels. This trend, driven by a confluence of economic shifts, changing consumer preferences, and innovative business strategies, has significantly altered the landscape of the accommodation sector. The surge in hotel conversions, where existing hotel properties are repurposed for different uses, is reshaping cities and communities across the globe. The Economic Catalysts The COVID-19 pandemic has been a primary catalyst for this surge in hotel conversions. The pandemic-induced travel restrictions and lockdowns led to a dramatic decline in hotel occupancy rates. According to data from the American Hotel & Lodging Association (AHLA), hotel occupancy in the U.S. dropped to historic lows in 2020, with many hotels struggling to stay afloat. Faced with prolonged periods of low occupancy and financial strain, hotel owners and investo