Decisions on an aging building with end of life issues

[Nina Liu]

Have a 1960s 30 unit single story motel where we are coming up on some end of life issues: the cast iron plumbing is disintegrating underneath bathrooms, radiators are starting to leak, electrical is in poor condition, and just today, discovered significant termite damage affecting multiple rooms. Right now, we've been able to keep rooms rented as we turnover the empty ones, but I am having trouble figuring out if this is the best strategy. At what point is it better to demolish and rebuild? I know some hotel franchises budget to shut down and renovate every ten years to stay updated. Ive only handled SFH and small multi-family rehabs, but never dealt with anything on this scale, and have no idea about the associated costs. Should I be reaching out to other hoteliers? Builders? Any feedback or suggestions? Thank you