CRAINSNEWYORK.COM I APRIL 29, 2024
Hotels cash in on Airbnb ban, migrant crisis
New York Marriott Marquis, 1535 Broadway, Times Square BUCK ENNIS
How the city’s response to the migrant surge, illegal short-term rentals is helping business By C. J. Hughes The hotel industry’s post-Covid revenue rebound has been a marker of success in the city’s pandemic recovery. It also may be misleading. The notable improvement in the hotel sector’s fortunes over the past year seems to have more to do with government interventions than any major market turnaround, some hotel executives, developers and brokers say. BY THE Indeed, efforts to grapple with issues including NUMBERS the migrant surge and illegal short-term rentals, such as units listed on Airbnb and other platforms that violate housing codes, have removed tens of The drop of thousands of rooms from the market, essentially listings in propping up the lodgings that remain, notably hoNew York on tel rooms, many of which have raised their rates to take advantage. Airbnb and But even with those market-manipulating acsimilar tions and a rebound in tourism, they say, hotel services occupancy rates are still hovering below preCovid levels. “A confluence of circumstances has pulled the sector out of the doldrums,” said Ronald Cohen, a broker with the firm Besen Partners who handles hotel deals. “But the reason for this Cinderella story has a lot to do with artificial supply constraints.” Though the city’s crackdown on improper short-term rentals seems potentially transformative for hotels, essentially kicking a
64%
See AIRBNB on Page 18
What’s in the state budget: Housing, speed limits, Medicaid, weed shops By Nick Garber and Amanda D’Ambrosio
Nearly three weeks late, New York state lawmakers passed a new budget on April 20 full of significant new policies on housing, health care, transportation, cannabis and more. The $237 billion spending plan contains a number of wins for Gov. Kathy Hochul, who persuaded leaders of the state Senate and Assembly to sign onto most of her top priorities — most notably a wide-ranging
housing deal, which fell into place thanks partly to Hochul’s concessions on tenant protections. On the other hand, the $4 billion growth in spending compared to Hochul’s initial budget plan reflects the Legislature’s success in rejecting some of her proposed cost-saving measures on Medicaid and public school funding. The budget also delivers much-needed help for Mayor Eric Adams, who hoped desperately for measures to spur housing growth, cover the city’s migrant crisis costs
and preserve his control over city schools. All made it into the budget, in some form. Here’s a partial list of the most notable policies.
Housing deal Budget documents published on April 20 include the middlingly received housing deal containing a new tax break for See BUDGET on Page 22
The $237 billion spending plan contains a number of wins for Gov. Kathy Hochul, who persuaded leaders of the state Senate and Assembly to sign onto most of her top priorities. | MIKE GROLL/OFFICE OF GOV. KATHY HOCHUL
VOL. 40, NO. 17 l COPYRIGHT 2024 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED
TRANSPORTATION State nixes fare-free buses, boosts express service ahead of congestion pricing.
GOTHAM GIGS NY1 anchor focuses on learning new things in order to stay sharp onscreen. PAGE 23
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