Hotel redevelopment should be a straightforward process: When a hotel structure has aged beyond its usefulness and its income generation falls below acceptable or necessary standards, removal or rehabilitation of the existing structure into a modern and area-appropriate new iteration is a common-sense solution.
In the Zone
However, as any hotel redevelopment expert will tell you, this often means you run afoul of local zoning regulations, which often have changed in the intervening decades since the original construction of the hotel structure. This conflict can manifest in several ways:
- Local groups who consider the original structure to be of historic value may launch a campaign to have it designated as a protected building, severely limiting or even preventing redevelopment.
- Zoning laws may require that a significant portion of the existing structure be retained in order to avoid being forced into a much smaller footprint due to “grandfathered” exceptions currently enjoyed by the building.
Research Is Key
When considering a hotel redevelopment project, the key to a successful undertaking is research. An expert can look into
- Existing zoning laws and especially aspects of the current structure that have been grandfathered in or granted variances.
- The impact that a loss of square footage or the required use of older infrastructure may have on future income and value projections.
- The likelihood of historical designation being granted to the building.
Hotel redevelopment can breathe new life into a property, but only if it is achieved without significant obstruction or loss of income potential, making consultation with an expert a vital first step.
