Hotels Check in to Historic Buildings: Quantitative and Qualitative Success Factors For Adaptive Reuse of Historic Buildings to Hotels

Abstract

Economics drive projects that rehabilitate historic buildings, but environmental and social factors are just as important in the balancing act of benefits that a successful project can provide. The premise of this study is that a project can be successful in achieving the goals of the owner and developer, as well as helping local governments and communities in which the projects are located manage change and maintain a sense of place. Moreover, this study demonstrates that the examination of quantitative and qualitative success factors for the adaptive reuse of historic buildings, as well as dedication to a Triple Bottom Line analysis, will achieve a balanced set of common goals for all parties involved. This study is intended to prepare all entities involved to understand and manage expectations through awareness of economic, environmental, and social aspects of adaptive reuse of historic buildings to hotels.

A developer always completes an analysis of some form of quantitative and qualitative factors when considering adaptive reuse of historic buildings. This study explored the quantitative factors that are measurable and will influence the project economics, including the Historic Rehabilitation Tax Credit (HRTC) program as a critical factor that attracts and incentivizes developers to undertake adaptive reuse projects. Research revealed that hotel operators can command a room rate premium by utilizing adaptive reuse of historic buildings to hotels due to their architectural character, history, and stories used in branding and marketing that contrasts non-historic and standardized offerings. This study highlights how adaptive reuse hotel projects provide social-economic benefits through long-term job creation, business opportunities, tax revenues, and promoting a sense of place and community. Given the location of their buildings, governments can also benefit from out leasing their historic buildings to private tenants, including hotel companies.

Adaptive reuse of historic buildings to hotels provides qualitative values that reinforce a community’s character and sense of place. My study found hotel operators are good stewards of adapted buildings and are aware of the goodwill entailed in establishing relationships within the neighborhood. These projects help maintain the architectural character and history of the historic building and reinforce how the structure and its stories are embedded in the neighborhood. Hotels in historic buildings provide third place in a community where both locals and visitors can meet and socialize.

This study found that attention to quantitative and qualitative factors in adaptive reuse of historic buildings to hotels works, and that using Triple Bottom Line analysis can be a good model for the consideration of and balancing the goals and expectations among the developer, hotel operator, local government, and community as consultation on the project takes place.