Hotel‑to‑apartment conversions have more than doubled in the past two years, surpassing office conversions for the first time in a decade. With hotel performance softening and values pressured by persistently high interest rates, many assets are now worth more as a conversion than as a hotel — giving owners a rare opportunity to sell at a higher price than the property’s hotel value.
Adaptive Reuse, YOY
Units In The Pipeline
VS. 36-48 New Build
U.S. HOTEL-TO-APARTMENT UNITS | DELIVERED
Source: RentCafe / Yardi Matrix Adaptive | Reuse Report, 2024
Renovate, reposition, or sell — and within repositioning, conversion and adaptive reuse are distinct strategies. Our Highest & Best Use analysis weighs every path against your asset. Select one to see when it makes sense.
Do I hold and renovate? Renovate and hold when the market still supports current use, the location is strong, and the PIP pencils against forward RevPAR. We model the renovation cost against projected stabilized value so you invest with conviction — not obligation.
How can I reposition my hotel? When hotel fundamentals soften but the real estate is well-located and structurally sound, repositioning captures the value the flag no longer can. Two related strategies:
Conversion changes the building’s use — guest rooms become market-rate, workforce, or affordable apartments.
Adaptive reuse goes further: retaining a functionally obsolete structure and redesigning it for a modern, profitable purpose — behavioral health, senior living, or student housing, as with the Park Inn — preserving architectural heritage and embodied carbon in the process. We identify the highest-value path and the buyer who shares that vision.
Should I sell? Sell when the capital is better deployed elsewhere, a PIP is looming, or a buyer’s alternative-use vision exceeds the property’s worth as a hotel. We position the asset to the widest set of qualified buyers — including conversion groups — to maximize the exit.
A 153-room full-service hotel in West Middlesex, PA, sold for conversion into a behavioral health facility — its layout, commercial kitchen, and meeting space made it a strong candidate. Led by Kishan Gohel and closed June 2026.
Tell us about the property. Our team will respond within one business day with a no-obligation read across all three paths – renovate, reposition, and sell.
Kishan is a Senior Vice President at NewGen Advisory, specializing in complex commercial real estate transactions with a particular focus on hotel-to-alternative-use conversions.
Ryan is a Senior Vice President at NewGen Advisory, where he connects global capital with hospitality investment opportunities.
Jigar is a Senior Vice President at NewGen Advisory and focuses on hotel and lodging transactions across the United States.