Danbury Positions Itself as a State Leader in Converting Vacant Hotels Into Apartments

Written by:

Rudi Davis

Date:

29 Jan 2026

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A practical solution to Connecticut’s housing shortage is gaining traction in Danbury: converting vacant or underused hotels and motels into apartments. Waleed Albakry, Planning Director for the City of Danbury, says the city is among the top municipalities in Connecticut for this type of adaptive reuse, turning long-closed hotel properties into new residential buildings with integrated amenities.

This approach targets older hotels and motels that have been empty or underperforming—some for more than a decade. Rather than letting these properties deteriorate, Danbury is converting them into one-bedroom and studio apartments. Albakry describes these projects as creating a “new type of product” that addresses the city’s housing needs while eliminating blight.

“We have been seeing underperforming hotels or motels that are in illegal condition being actually converted into one-bedroom or studio buildings, which are really needed,” Albakry says. He notes that Danbury ranks first or second in Connecticut for the number of these conversions underway.

The Crowne Plaza Example

One of the most prominent examples is the former Crowne Plaza hotel, which sat vacant for about 15 years. The property is now being redeveloped into residential apartments with built-in amenities. Where hotel lobbies once stood, there will be co-working spaces. Former restaurants will become community gathering areas, and conference rooms will be transformed into event venues.

“All the spaces in the hotel are becoming amenities,” Albakry explains. “There will be work share space, a coffee shop, venues for music and other uses.” He says the project is turning a long-abandoned building into a vibrant residential community.

According to Albakry, hotel conversions allow for creative amenity design that is rarely possible in traditional apartment construction. The result is not a standard apartment building, but a mixed-use residential property with integrated services and social infrastructure designed to foster community among residents.

Economic and Community Benefits

The economic logic behind these conversions is straightforward. Hotels already have essential structural systems, parking, and common areas that can be repurposed as amenities. For developers, these properties are often priced lower because they have not performed well for years. The existing infrastructure can simplify construction, and cities are typically eager to support projects that address both blight and housing shortages.

For municipalities like Danbury, the benefits are clear. Properties that were closed and deteriorating become productive assets, generating tax revenue and adding much-needed housing units. “If you have a hotel that used to be closed down for fifteen years and empty, it’s being turned into nice one-bedroom or studio apartments,” Albakry says.

Developers and investors may also see advantages in these projects. With land costs lower and much of the building framework already in place, the path to creating new housing can be quicker and less expensive than ground-up construction. Municipal support is often strong because these projects address multiple city goals simultaneously.

Zoning and Regulatory Support

A key challenge for hotel-to-apartment conversions is securing municipal support and clear zoning regulations. In cities where zoning codes do not explicitly allow hotel-to-residential conversions, developers can face unnecessary barriers and delays.

Albakry says Danbury has taken deliberate steps to create regulatory flexibility. The city’s downtown zoning is “very, very flexible,” he says, enabling adaptive reuse projects like hotel conversions without the need for extensive variances or special permits. This proactive approach has made it easier for developers to pursue conversion projects and for the city to respond to changing housing needs.

A Broader Trend in Adaptive Reuse

While Danbury’s recent focus has been on hotels, the city is also exploring other forms of adaptive reuse, such as converting underutilized commercial buildings into residential or mixed-use developments. This reflects a broader trend among municipalities: repurposing existing structures rather than relying solely on new construction to meet housing demand.

The future of hotel-to-apartment conversions beyond Connecticut will depend on several factors: the supply of vacant hotels, local zoning flexibility, and developer interest. For now, Danbury is positioning itself as a leader in this growing segment of housing development, showing how cities can turn long-vacant properties into productive, community-oriented residential buildings.

As housing shortages continue to challenge many regions, Danbury’s experience demonstrates that adaptive reuse of hotel properties can provide a practical, scalable solution if city leadership and zoning codes are aligned to support it.