Research
Office to Hotel Conversion
Strengthening hotel market opens opportunities for converting office buildings to hotels
October 17, 2023
Contributors:
- Gus Moors
- James Aroney
- Duane Loader
The office market is undergoing a structural shift, caused by the pandemic’s acceleration of the remote working trend. In contrast, trading in the hotel sector is strengthening, with all markets showing increases over 2019 levels in terms of revenue per available room (RevPAR). As a consequence of these alternating fundamentals, we are now seeing a window where hotels may be viewed as a higher and better use than certain office assets.
Our latest report explores this ongoing trend and a series of factors that need to be considered in determining if a building can be converted.
