Background:The Transitional Hotel Project (THP) is a noncongregate emergency hotel initiative with comprehensive wraparound services implemented at the onset of the COVID-19 pandemic. It was designed to address the emergency housing needs of adults transitioning from incarceration (returning citizens) to community reintegration.Objective:The study aims to explore the external and internal recovery needs of returning citizens participating in the THP, with a focus on their housing stability, mental and behavioral health, employment, and the development of prosocial relationships.Methods:This mixed-methods case study used de-identified case management data, focus groups, and interviews with 24 participants, including employees, key partners, and returning citizens. A thematic analysis was conducted to identify key themes related to the recovery process of returning citizens.Findings:A thematic analysis revealed three primary themes: (a) safety, including both physical and psychological aspects; (b) mutual empathy; and (c) person-centered decision-making. Two subthemes emerged under the safety theme: (a) physical safety and (b) psychological safety. Mutual empathy between participants and peer mentor staff played a critical role in fostering the recovery of returning citizens.Conclusions:The findings suggest that the physical and psychological safety provided within the hotel setting, along with the empathy and support from peer mentor staff, were significant factors contributing to positive changes in returning citizens. These elements of the THP appear to have facilitated improvements in both external recovery needs (e.g., housing stability and employment) and internal recovery processes (e.g., restructured self-identity, human agency, and perceptions of hope).