Developer Richard Rubin bought a long-shuttered Alabama Ramada Inn in 2021; after a sub-$5 million redevelopment, its 120 rooms were slated for workforce housing

The closure of hotels during the pandemic has left some properties with fresh possibilities beyond their real purpose. For developer Richard Rubin, the interruption in the hospitality and housing markets has led to an opportunity to transform permanently closed hotels into housing for middle-income employees.

Rubin is pursuing the approach via his greater Los Angeles-based firm, rm Repvblik, pronounced “republic.” The organization is using private financing rather than federal funding or tax credits for its projects. Rubin said privately funded developments can move through the closing procedures more quickly and offer greater flexibility for owners.

One of the company's latest projects is a former Ramada Inn at 4205 Hatch Blvd. in Sheffield, Alabama. Repvblik recently closed on the property, marking its initial project in the southeastern United States. Rubin stated that the Alabama purchase will not be the organization’s last project in the area.


The entire Alabama development, which includes the acquisition and renovation, is estimated to cost $4.7 million.

Focus on middle-income workers

Rubin cited that the housing shortage is especially significant for workers earning between 60% and 120% of area median incomes. He also said the economic challenges associated to COVID-19 have increased the requirement for affordable housing.

He showed a gap between the types of housing supported by various sources of financing. Commercial lenders have traditionally made capital available for the upper tier of the apartment rental market, while federal programs like Low-Income Housing Tax Credits, or LIHTC, have helped to offer housing for the poorest Americans.

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Why private financing can move faster

The LIHTC program also brings requirements for developers,as per Corianne Payton Scally, principal research associate in the Metropolitan Housing and Communities Policy Center at the Urban Institute.

For a developer ready to start work immediately, those deadlines can create another challenge, Scally stated.

Former Ramada Inn to become 120 apartments

The Sheffield redevelopment is a joint venture between Repvblik and Drever Atelier Partners. As per CoStar data, the long-shuttered Ramada Inn had been on the market for over a year before Drever Atelier Partners acquired it.

Rubin secured local debt financing in Sheffield through First Southern Bank.

The hotel is being transformed into 120 energy-efficient, one-bedroom units made for workforce housing. The property is also intended to have coworking spaces, a pool, gym, day care and storage.

Residents will also have access to a neighboring 7-mile nature trail.

Monthly rents are anticipated to range from $500 to $700.

Another hotel conversion underway in Missouri

The Alabama project is part of a broader approach already being pursued by Repvblik. The organization has another conversion underway in Branson, Missouri, a town in southwest Missouri known as a family-entertainment vacation spot.

In Branson, Repvblik is functioning and leasing Plato’s Cave. The project is almost nearing completion on its final 140 efficiency and one-bedroom units. Once finished, the development will have 341 apartments.

Repurposing closed hotels for housing

Rubin's projects center on taking former hotel properties and offering them a fresh role as housing. The Alabama development will turn a long-shuttered Ramada Inn into 120 workforce-oriented units, while the Branson project is similarly using a former Days Inn property for apartments.

For Rubin, the pandemic-era disruption in the hospitality and housing markets has led to an opening for this type of adaptive reuse. His approach concentrates on privately financed projects intended for middle-income workers, while avoiding the longer process and requirements linked with federal housing tax credits.

Source: CoStar