The first week that New York City’s law severely restricting short-term rentals was in effect didn’t produce a higher-than-usual boost to hotel performance, according to early data, but hotel industry leaders expect that in the longer term, the ban will be a boon.
“It will absolutely increase the demand for hotel rooms, which is something that makes me happy,” BD Hotels principal Richard Born said.
Local Law 18 went into effect on Sept. 5, and New York City hotel occupancy was at 88.6% the week of Sept. 3-9, according to STR data obtained by Bisnow, while average revenue per available room was $308.85 and the average daily rate was $348.40.
All of those numbers were jumps from the week prior, which saw occupancy of 86.2%, ADR of $283.80 and RevPAR of $244.50, per STR. But that jump is in line with those same weeks in 2022: Occupancy rose from 81.3% between Aug. 28 and Sept. 3, 2022, to 85.5% Sept. 4-10 that year. ADR jumped from $271.62 to $323.67 over that same period in 2022, and RevPAR rose from $220.70 to $276.42, according to STR data.
The lack of immediate impact didn’t surprise industry leaders. Airbnb will cancel reservations for unregistered hosts starting Dec. 2 this year, so hotels might get a boost after that moment, Hotel Association of New York City President and CEO Vijay Dandapani said.Read More