NYC Hotel Prices Rise Due to Increased Migrant Lodging

The average daily rate of hotel rooms in New York City increased by 8.5% from 2022 to 2023 and has remained high in the first few months of 2024 as approximately 135 hotels were converted into housing for immigrants, as reported by The New York Times reported.

None of the hotels that joined the city’s shelter program have gone back to their traditional hotel business, causing NYC hotels to be more expensive than ever. The cost of staying at the remaining 500-plus hotels has gone up by 6.7% year-over-year at a time when hotel prices usually decrease. The average cost of a hotel room is now $230.79, up from $216.38 after the first quarter of 2023.

Overall, the city now has 16,532 fewer hotel rooms available for travelers and tourists as they were used to accommodate around 65,000 immigrant migrants. The sanctuary hotel program ensures hotels a rate between $139 and $185 per night, regardless of room occupancy, excluding food and other services. This is part of the city’s plan to spend $10 billion over the next three fiscal years as a sanctuary city.

However, this comes at a significant cost to tourists.

“During peak times, trying to find a hotel room on a Tuesday, Wednesday, or Thursday night in midtown Manhattan could come at a high price,” stated Daniel H. Lesser, a co-founder of LW Hospitality Advisors, in an interview with the Times. “It’s all about supply and demand, and the migrant rooms have reduced the available supply.”