For decades, senior living has been built the traditional way — on empty land, from the ground up. But in states like North Carolina, South Carolina, Georgia, and Tennessee, a new model is reshaping the landscape: converting hotels to residential senior communities. The southeastern hotel industry, which experienced a wave of closures and underperformance during and after the pandemic, is now meeting a demographic surge head-on.
With 30 years in senior housing operations, the Paradigm team has observed a distinct trend of hotel owners converting their properties to senior housing in the Southeast. This trend seems to be increasing, in part or in full, to several key factors.
A Market Catching Up to Demographics
Let’s start with what’s driving this shift: the numbers.
| State | 65+ Population Growth (2020-2030) | Current Occupancy Challenges | Hotel Availability |
| North Carolina | +28% | Long waitlists in metro areas | High in Triad/Charlotte |
| South Carolina | +30% | Influx of retirees | Myrtle Beach, Columbia |
| Georgia | +26% | Limited mid-market supply | Atlanta, Augusta |
| Tennessee | +25% | Rising rural demand | Knoxville, Chattanooga |
This region isn’t just aging; it’s booming. And yet, the construction pipeline hasn’t kept up. That’s where southeastern hotel conversions offer a smart, scalable solution.
Why Hotels Work So Well for Senior Living
Repurposing hotels into senior housing isn’t just about timing — it’s about fit. Here’s why:
- Layout already lends itself to private apartments, central dining, and common areas.
- Speed to market is 30-40% faster than ground-up development.
- Cost per unit is lower, especially for mid-market options.
- Urban and suburban access makes them attractive for adult children and staff alike.
These hotel to residential conversion projects check every box for communities that need to open quickly and responsibly.
Key Benefits for Residents and Investors
Converting hotels to residential senior communities offers value across the board:
For Residents
- Closer to city amenities and healthcare
- Faster availability compared to new builds
- Affordable monthly rates in high-demand areas
For Investors and Developers
- Faster ROI
- Reduced permitting and zoning delays
- Creative repositioning of underused assets
The Southeastern Hotel Industry: Right Place, Right Time
Post-pandemic, many mid-tier hotels across the Southeast have struggled to return to pre-2020 performance. Owners are now open to repurposing, especially in markets where tourism has softened but population growth remains strong.
A few key signs:
- Daily rates remain below average in secondary cities like Columbia, SC and Macon, GA.
- Brand disaffiliation is rising, making these properties easier to transition.
- Local municipalities are supportive, especially where housing shortages persist.
These trends have made the southeastern hotel industry a viable partner in the growth of senior housing.
What to Look For in a Successful Hotel to Residential Conversion for Seniors
Not every hotel makes the cut. We look for:
- Room sizes that support ADA upgrades
- Elevator access and wide corridors
- Ability to add kitchenettes or wellness spaces
- Zoning flexibility
If you’re an owner considering converting, or an operator seeking to grow in the region, focusing on these criteria increases long-term success.
A Real-World Look at the Timeline
Here’s a simplified view of a typical conversion timeline:
| Phase | Duration |
| Property Acquisition | 2 months |
| Design and Permitting | 3 – 4 months |
| Renovation and Build-Out | 6 – 8 months |
| Opening to Lease-Up | 2 – 3 months |
Total: 13 – 17 months from closing to move-in-ready.
Compare that to the two to three years it takes for ground-up builds — and it’s clear why southeastern hotel conversions are surging.
The conversion of hotels to senior housing in the Southeast represents a strategic response to evolving market demands and demographic changes. By adapting to these trends, hotel owners can revitalize underperforming properties while providing much-needed housing options for the growing senior population. This evolution not only benefits property owners economically but also serves the community by enhancing the availability of quality senior living environments, to a broader cross section in the senior age and income demographic.
Speed + Strategy = Long-Term Impact
Senior living in the Southeast is evolving in real-time. As more families look for secure, convenient, and accessible options for loved ones, the hotel-to-residential conversion model delivers. For owners, operators, and investors, it’s a win that aligns with both demographics and dollars.
With decades of operational experience behind us, Paradigm Senior Living has found that converting hotels to residential senior communities isn’t just efficient; it’s effective. And it’s here to stay. While not all hotel properties are suitable for conversion, if you have a specific property that you would like to discuss, contact our team to learn more.