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Skip to contentSkip to site indexSearch & Section NavigationSection Navigation SEARCH New York Try 7 days freeLog in Sunday, May 26, 2024 Today’s Paper Try 7 days free New York|Why N.Y.C. Hotel Rooms Are So Expensive Right Now https://www.nytimes.com/2024/05/25/nyregion/hotels-prices-migrants-nyc.html * Share full article * * * 355 Advertisement SKIP ADVERTISEMENT Supported by SKIP ADVERTISEMENT WHY N.Y.C. HOTEL ROOMS ARE SO EXPENSIVE RIGHT NOW The average hotel room rate in the city is $301 a night, a record. A major reason: One of every five hotels is now a shelter, contributing to a shortage of tourist lodging. New Listen to articles Tap the Play button at the top of any article to hear it read aloud. Listen to this article · 11:15 min Learn more * Share full article * * * 355 * Read in app Many of the hotels now operating as shelters, like The Row in the Times Square area, are congregated in places like Midtown Manhattan and near Kennedy Airport.Credit...Kirsten Luce for The New York Times By Luis Ferré-Sadurní May 25, 2024 In late 2022, as thousands of migrants began to arrive in New York City, city officials scrambled to find places to house them. They quickly found takers: hotels that were still struggling to recover from the pandemic-driven downturn in tourism. Dozens of hotels, from once-grand facilities to more modest establishments, closed to tourists and began exclusively sheltering migrants, striking multimillion-dollar deals with the city. The humanitarian crisis became the hotel industry’s unexpected lifeline in New York; the hotels became a safe haven for tens of thousands of asylum seekers. Two years in, as the city’s peak tourism season is about to begin, the migrant crisis has helped dramatically shift the hotel landscape in New York. The conversion of hotels to shelters has sharply decreased the supply of rooms just as tourist demand has risen, nearly to prepandemic levels, and is projected to match a record high. The migrant shelters — along with other factors that include inflation, the loss of Airbnb short-term rentals and an expected decline in new hotel construction — have propelled the nightly cost of an average room to record levels. Advertisement SKIP ADVERTISEMENT The average daily rate for a hotel stay in New York City increased to $301.61 in 2023, up 8.5 percent from $277.92 in 2022, according to CoStar, a leading provider of commercial real estate data and analysis. During the first three months of 2024, when prices traditionally dip, the average stay was still 6.7 percent higher than during the same time period last year: $230.79 a night, up from $216.38 in 2023. About 135 of the city’s roughly 680 hotels entered the shelter program, with many congregated in Midtown Manhattan, Long Island City in Queens and near Kennedy International Airport — all traditional magnets for tourists. Participating hotels are paid up to $185 a night per room, according to the city. Not a single one has converted back into a traditional hotel. HOTELS THAT HAVE BEEN CONVERTED INTO SHELTERS BRONX MANHATTAN QUEENS Midtown Long Island City Jamaica Kennedy Airport STATEN ISLAND BROOKLYN BRONX MANHATTAN QUEENS Midtown Long Island City Jamaica Kennedy Airport STATEN ISLAND BROOKLYN Source: CoStar Subscribe to The Times to read as many articles as you like. Luis Ferré-Sadurní covers immigration, focused on the influx of migrants arriving in the New York region. More about Luis Ferré-Sadurní See more on: Eric Adams Read 355 Comments * Share full article * * * 355 * Read in app Advertisement SKIP ADVERTISEMENT COMMENTS 355 Why N.Y.C. Hotel Rooms Are So Expensive Right NowSkip to Comments The comments section is closed. To submit a letter to the editor for publication, write to letters@nytimes.com. SITE INDEX SITE INFORMATION NAVIGATION * © 2024 The New York Times Company * NYTCo * Contact Us * Accessibility * Work with us * Advertise * T Brand Studio * Your Ad Choices * Privacy Policy * Terms of Service * Terms of Sale * Site Map * Canada * International * Help * Subscriptions Enjoy unlimited access to all of The Times. See subscription options