A downtown apartment building is being converted into a Margaritaville hotel, paid for with a $113 million loan from Peachtree Group. Which direction the conversion runs is the whole story. Since 2020 most cities have been turning hotels and offices into housing. Savannah is going the other way, because a hotel room downtown earns more here than an apartment does.
That matters more here than it would almost anywhere else. The historic district is effectively full and protected, so its housing supply barely moves. Homes taken out of it do not get replaced nearby.
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SAVANNAH — a 2023-built apartment property on Ann Street is being converted into the 230-room Margaritaville Hotel Savannah.
Peachtree Group says it closed a $113 million bridge loan for Tidal Real Estate Partners to reposition the 232-unit Ann Street property. Conversion work is slated to begin in late summer, with the hotel targeted to open in 2027.
This is not the reuse of a long-vacant building. Ann Street Lofts was completed as a mass-timber multifamily project in 2023. Three years later, those long-term apartments are slated to become short-term hotel rooms.
The project brings a recognizable resort brand to the western edge of downtown, but it also removes recently built apartments from Savannah’s housing supply.
What do you think: smart adaptive reuse, or the wrong trade for downtown housing?
Why it matters
Every apartment converted is one fewer home in the part of Savannah where new ones essentially cannot be built.
What to watch
How many apartments actually come out. The financing announcement did not say.
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