Motel turned apartments?

[Sabrina Maples]

There's an interesting opportunity here in Chandler, Arizona where a motel is being sold but the agent is marketing it for commercial apartment usage. It has 25 units which mainly consist of 1 beds and studios and is listed at $2.6 million.

Its currently functions as a motel with weekend rentals but they are also doing week to week rentals.

Has anyone done this before? I'm very intrigued by the whole thing.

[Philip Cook]

@Sabrina Maples I have an offer in on a 16 room motel here in Wisconsin with the same idea. I think I would end up with 7 studios, 5 one bedrooms, and a 3 bedroom after renovating and adding kitchens. It's the 50's style where all the rooms have private doors from the parking lot. 

I would be interested to hear from anyone that has converted a motel or a hotel into apartments. I have to imagine that the hospitality industry is hurting in the rest of the country like it is here. With the right business model and capital, I have to wonder where someone could take this idea?