Recap with Brandon Roth Ep. 9 Hospitality-to-Multifamily Conversions (Ryan Sudeck - Sage Investment Group)
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Jul 26, 2025 
Ryan Sudeck, CEO of Sage Investment Group, discusses innovative strategies for converting hotels into multifamily properties, managing over 2,600 units across six states. He highlights market selection and deal sourcing, touching on challenges like regulatory hurdles and financial benefits in Tucson's transformation. The importance of construction management, competitive bidding, and assessing rental rates is emphasized, along with insights on real estate financing and the dynamics of investor relationships. This conversation reveals the future viability of hospitality-to-residential conversions.
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First Successful Hotel Conversion
- Ryan Sudeck's first hotel conversion in Tucson became student housing but pivoted to general population due to COVID.
- The project leased up quickly and sold for a significant profit, demonstrating the strategy's effectiveness.
Equity Growth From Hotel Conversions
- Converting distressed hotels to multifamily creates significant equity by buying at high cap rates and selling at lower ones.
- This conversion strategy captures value through operational and ownership risk shifts.
Strong Rent Growth and Demand
- Rent growth for converted hotels averages 4-6% annually, often outperforming pro formas.
- Demand for affordable, quality housing drives quick lease ups in these properties.