Migrant surge driving hotel prices to record highs in sanctuary city: report
Mayor Eric Adams' office attributed the rise of prices to increased tourist demand
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The cost of a hotel room has hit a record high in New York City, in part due to the ongoing migrant crisis, which has squeezed the number of hotel rooms available for tourists.
The New York Times, citing data from CoStar, reported that the average daily rate for a hotel stay in NYC increased to $301.61 in 2023, up 8.5% from $277.92 in 2022.
More recently, in the first three months of 2024, the average stay was $230.79 a night, up from $216.38 in the same period last year.
The price hikes come amid a historic migrant crisis both at the southern border and in the Big Apple, where the city has seen nearly 200,000 migrants arrive since 2022, with tens of thousands remaining in the shelter system.
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As part of that, about 135 of the 680 hotels have entered the program, with hotels being paid up to $185 a night, according to the Times. Many of those hotels are in popular parts of the city for tourists, including by the JFK International Airport or the Midtown Manhattan area.
Migrants and asylum seekers arrive at Roosevelt Hotel in Manhattan on Jan. 4. (J. Conrad Williams, Jr./Newsday RM via Getty Images)
It’s a loss of 16,532 hotel rooms, leaving 121,677 for travelers. That’s 2,812 fewer than before the pandemic, the report said.
However, Mayor Eric Adams’ office, responding to the Times’ report, attributed the rise in costs to the increased demand as tourists returned to the Big Apple after the end of the pandemic.
"When the Adams administration came into office, tourism was at the fourth-lowest level in over 20 years. But today, New York City is back — and last year, we had the fourth-highest tourism in history, we are on track for roughly 64 million visitors this year, and we expect a full recovery with over 68 million visitors in 2025," a City Hall spokesperson said.
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"The return of tourists to New York City is reflected at hotels as well, where demand is up. New York City is safer, cleaner, and, as the numbers show, continues to be one of the most popular destinations in the United States," they said.
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The city is one of a growing number that have faced woes related to the ongoing migrant crisis. Denver and Chicago are among the cities that have joined NYC in appealing for more aid from the government, including $5 billion in funding, a national resettlement strategy and expedited work permits for asylum seekers.
The Biden administration this week announced new measures to limit asylum when numbers exceed a certain level — a move that brought an immediate backlash from both Democrats and Republicans.