A Covington hotel is checking out of the hospitality business and lining up a return as housing. The former WeStay Suites near Interstate 12 is slated to become an 87-unit apartment community after Red Oak Capital provided an $8.4 million bridge loan to the buyer.
Red Oak Capital Holdings LLC supplied the financing to an investment group represented by Nebo Capital. The 12-month bridge is set to fund a $6.9 million acquisition and roughly $1.8 million in planned renovations as the buyer repositions the property into 87 apartments, according to REBusinessOnline.
About the property
The five-story building measures about 89,831 square feet and sits on roughly 2.9 acres, according to commercial listings on LoopNet. Travel sites list the address as WeStay Suites at 140 Holiday Blvd and note guest amenities such as an outdoor pool and fitness center, per Travelocity.
Why developers are betting on conversions
Conversion projects have been picking up speed nationwide, with hotel-to-apartment work alone producing more than 9,100 units in 2024, according to analysis by RentCafe. Industry coverage notes that adaptive reuse often saves time and cost compared with starting from scratch, a trend highlighted by Building Design + Construction.
What is next for the Covington project
Locally, the conversion will add 87 long-term units to Covington’s housing stock and continues a pattern of similar adaptive reuse deals in the region. The borrower, which Red Oak says has completed a similar project nearby, plans to refinance the bridge loan with permanent or agency debt once renovations are finished, according to REBusinessOnline.
