Approximately 80% of NYC migrant housing is provided by motels, hotels, or inns.
The New York Post reported that New York City hotels are poised to receive over a billion dollars in taxpayer funds for converting their properties into migrant shelters. Out of 193 migrant shelters in the city, 153 are motels, hotels, or inns. On average, the city pays $156 per hotel room for migrant stays, as revealed in a May analysis by Comptroller Tom DiNapoli. Some reports suggest these locations earn more than $300 per room per night since the influx of migrants began in spring 2022.
“This shift has not only increased hotel room prices for tourists but also disrupted the Airbnb market.”
The report highlighted that by May 31, the city had spent about $4.88 billion on the migrant crisis, with $1.98 billion solely on migrant housing, including hotels, motels, and tent cities at Randall’s Island and Floyd Bennett Field.
William Shandler, a manager at Iron Bar, expressed concern that businesses are suffering. Luxury hotels, once their customer base, have turned into migrant shelters, failing to support local businesses. “Our taxes pay for the migrants, but where do we generate revenue?” Shandler asked. “How can a business function?”
In November 2023, CoStar reported that up to 16,000 hotel rooms in the city were occupied by migrants, affecting the hotel industry’s health.
Councilwoman Joann Ariola emphasized that hotels are intended for tourism, not as mass shelters, as per the Post. “These locations should boost the city’s economy, but instead, they have become a financial burden,” she added.
While some argue that welcoming migrants benefits the city, many New Yorkers are uneasy, and the city’s response to this unrest remains uncertain.
