The New York City hotel industry, once battered by the COVID-19 outbreak, is making a remarkable comeback, and the migrant crisis is playing a significant role in its resurgence.
The influx of migrants seeking asylum has spurred an unexpected demand for hotel accommodations, leading to a boon for the hotel sector.
Businesspeople are now looking to invest in hotels or open new ones due to the financial opportunities arising from the city’s expenditure on housing asylum-seekers and the resulting scarcity of rooms for tourists. Previously, the pandemic had left thousands of hotel rooms empty, causing massive revenue losses and even bankruptcies.
Price hike
With tourists returning to the Big Apple, a common complaint has been the expense of hotels in Manhattan, even those below three stars.
Over 100 hotels in the city have contracted with Mayor Eric Adams’ administration to provide more than 10,000 rooms for asylum-seekers. Some prominent hotels, like the Roosevelt and Holiday Inn, have already been converted into migrant shelters. As a result, hotel occupancy rates have increased, and the revenue per room has risen compared to pre-pandemic levels.
However, the hotel industry still faces challenges. The number of hotel rooms remains lower than before the pandemic, and the city’s tourism business has not fully recovered. Additionally, some industry insiders worry about the future when the migrant crisis subsides. Nonetheless, the current uptick in hotel demand has been a positive development for an industry that once faced severe setbacks.
