Property

Colliers: Empty hotels may be a new affordable housing, work space opportunity

Pandemic-emptied hotels should transform some of their space into affordable residential or flexible work space rentals to survive COVID-19, which has wreaked havoc on the tourism industry due to travel restrictions.

Property consulting company Colliers said hotel operators must implement changes and have an agile portfolio with a range of flexible options to ride out the crisis.

“Colliers believes that hotel operators should be more agile given the anemic demand brought about by the pandemic and the global economic crunch. In our opinion, some hotel operators should consider other leasing models and repurpose their facilities into co-living facilities and flexible workspaces.

” These schemes, however, should comply with the government-mandated physical distancing measures. These promotions should be promoted aggressively on social media and target the millennial and mobile workforce,” Colliers said.

The shift to working from home and the need to downsize have reduced the amount of space companies need.

Colliers said hotel operators should target returning overseas Filipino workers and professionals looking for co-living facilities and flexible workspaces.

During the lockdown and suspension of public transportation, hotels have served as halfway houses for outsourcing employees and quarantine facilities for OFWs.

” We encourage hotel operators to continue obtaining accreditation from government agencies to accommodate BPO workers and OFWs,” Colliers said.

Colliers estimates that tourist traffic won’t rebound to pre-crisis levels this year as demand for air travel will remain low. As such, the property consultancy firm is urging hotels to consider reducing rates to help prop up occupancies.

Foreign arrivals declined by 68% in the first half, resulting in 16% decline in average daily rates in June.

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