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Why N.Y.C. Hotel Rooms Are So Expensive Right Now

·1 min

In late 2022, New York City officials faced a challenge as thousands of migrants arrived, requiring housing solutions. They turned to hotels, which were struggling due to the pandemic’s impact on tourism. Many hotels closed to tourists and exclusively sheltered migrants, forming lucrative deals with the city. This unexpected shift aided the hotel industry but decreased room availability just as tourist demand was rebounding. The conversion of hotels to shelters, along with inflation, loss of Airbnb rentals, and limited hotel construction, drove up room rates. The average daily rate for a hotel stay in New York City increased to $301.61 in 2023, up 8.5% from the previous year. Approximately 135 hotels entered the shelter program, primarily in Midtown Manhattan, Long Island City, and near Kennedy International Airport. Despite the crisis, no participating hotel has converted back into a traditional hotel.