Battered NYC hotel industry makes comeback — thanks to the migrant crisis

[Kamaji]

Battered NYC hotel industry makes comeback — thanks to the migrant crisis

By Carl Campanile
July 30, 2023

The Big Apple’s hotel industry is making a bust-to-boom post-COVID comeback — thanks in large part to the migrant crisis.

Industry bigs tell The Post that business people are looking to buy hotels or even open new ones — spurred by the big bucks the city is having to drop on accommodating asylum-seekers at them, as well as a related dearth of rooms for tourists.

“Who would have thought that hotels would be perceived as a darling asset class compared to office buildings?” said Daniel Lesser, CEO of LW Hospitality Advisors, at a New York Hotel & Hospitality conference held at the New York Marriott Marquis last week, host bisnow.com reported. “That’s what’s happening now.”

Just a few years ago, the COVID-19 outbreak devastated the hotel sector, with travel bans and lockdowns leaving thousands of rooms empty, causing a massive loss of revenue that triggered bankruptcies and closures.

The city’s flood of migrants is helping to change that, with more than 100 hotels now contracting with Mayor Eric Adams’ administration to fill up more 10,000 rooms with asylum-seekers.

Vijay Dandapani, CEO of the Hotel Association of New York City, told The Post there is a “small subset of prospective and current hotel owners” who are considering jumping on the opportunity and buying hotels or opening new ones.

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Source:  https://nypost.com/2023/07/30/battered-nyc-hotel-industry-makes-comeback-thanks-to-the-migrant-crisis/