CoStar News: Apartment Developers See Opportunity in Market Discount on Closed Hotels

In the height of the COVID-19 pandemic, the travel and leisure industry experienced a severe dip in demand. That decrease resulted in a drop in prices for hotels. Lucern Capital Partners saw an opportunity in lower hotel purchase prices and acquired an hotel in Charlotte, NC to convert the property into a multifamily asset. Through Lucern’s value-add investment strategy, in-unit upgrades, external improvements and hands-on asset management, our team aims to increase cash flows for both the firm and its investors.

Frank Forte, a Lucern Capital Partners Managing Partner, spoke with CoStar for a recent article about the trend of hotel conversions and how Lucern is approaching its current conversion project.

“Because hotels are comparatively cheap these days, the lower conversion costs and rents could help more renters access housing, too, a significant need amid a national housing affordability problem.”