More NYC hotel loans are defaulting as room rates fall (York: sublease, rental)
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Because then they can't cover their expenses either. This is why the primary opponent of AirBnB is the NY hotel unions. They're terrified that people who want to stay in/near NYC will not have to say in union hotels, and pay absurd rates that cover their bloated salaries.
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Originally Posted by Cida
Why not charge more reasonable rates, so that they'd be full?
This is what people who hate AirBNB don't seem to understand. They flourished because hotel rates are, as that candidate said, "Too damn high."
Tourism will be worse this year than anytime in the past decade. Due to coronavirus and crime spike. Many Chinese tourists can't come and crime spike will make many Americans plan their vacations elsewhere.
Because being a landlord of an apartment building in NYC will be likely even worse than being an owner of a half-empty hotel in the future years. I don't know what legal process might be involved in converting a hotel into a condo building, but I know of specific buildings that underwent that conversion (though not in NYC) - that would certainly be a more profitable way to salvage a failed hotel project, and would create a supply of small condo or co-op units that are generally lacking in NYC.
Btw, if a substantial number of hotels shut down in NYC, that will keep prices of remaining accommodations high, per market rules of supply and demand. Also, I did not notice that hotel prices in Manhattan are higher than centrally located hotels in LA, San Francisco, Seattle, Santa Fe, mountain towns in Colorado and Utah, Boston, even Pittsburgh...
Landlord will always be more stable industry than hospitality given all else is equal.
The closures will only go up to an equilibrium of just enough hotels to keep rates attractive and still allow the remaining to stay green.
If some big hotels do close, it be best for the admin to allow for rapid conversion to something like housing, or shelters. They were quick with that Pan Am hotel on Queens Blvd and the Holiday Inn in Maspeth. As a residential rental, the rooms be really small studios, and probably affordable too.
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Originally Posted by DonaldJTrump
Just turn them into homeless shelters as they have been doing for the last few years. The city will pay 600 a night
The rooms make really nice small studio apartments though. Depends on what kind of incentives govt wants to give out in exchange for the property.
Landlord will always be more stable industry than hospitality given all else is equal.
The closures will only go up to an equilibrium of just enough hotels to keep rates attractive and still allow the remaining to stay green.
If some big hotels do close, it be best for the admin to allow for rapid conversion to something like housing, or shelters. They were quick with that Pan Am hotel on Queens Blvd and the Holiday Inn in Maspeth. As a residential rental, the rooms be really small studios, and probably affordable too.
The rooms make really nice small studio apartments though. Depends on what kind of incentives govt wants to give out in exchange for the property.
In case you haven't heard, what property buyers normally "give out in exchange for the property" is money, and the transaction is called "sale and purchase" (or "lease" if the exchange is temporary). What other kind of "incentive" do you have in mind that property owners would want in exchange for their property?
Condo (or co-op) conversions are far better for both the seller of the building and for the city, than more fleabag hotels and flophouses (the poster DonaldJTrump was being sarcastic, in case you haven't noticed that either). My guess is that a building owner would first explore every other option (including bankruptcy, or arson if feasible) before agreeing to run a mental institution/open-door jail in exchange for "government" (btw, that means "taxpayer") money, or in exchange for any money.
Hotels are doing good in Florida and California but Airbnb going take big share of NYC hotel market less than 5 years. It like Lyft and Uber pass taxis rides in 2016/2017. More NYC tourists and visitors are using Airbnb than hotels these days. Uber from airport to Airbnb then subway to Manhattan or around Manhattan.
Unlike Uber/Lyft, there are strong laws curbing AirBnB in and around NYC (thanks to the hotel unions.)
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Originally Posted by BPt111
Hotels are doing good in Florida and California but Airbnb going take big share of NYC hotel market less than 5 years. It like Lyft and Uber pass taxis rides in 2016/2017. More NYC tourists and visitors are using Airbnb than hotels these days. Uber from airport to Airbnb then subway to Manhattan or around Manhattan.
Right now Airbnb is 25% of market share I will say in 2 years it will 40-50% hotels will be shutting their doors especially NYC
I don't see anything wrong with that. People have come across an idea of offering their homes cheaply to tourists, and that idea has outcompeted the idea of going to a chain hotel. That is how free market works. I personally use AirBnB, and totally support that business concept. In San Francisco, where I have the second condo, one of the condo owners in our relatively small building uses the unit as AirBnB. Tourists are nice, quiet and totally non-disruptive, and we don't mind them at all.
As much as I am sorry for the hotel owners who incorrectly guessed the future market needs in NYC, I don't think failed business ventures should be artificially propped up with rules such as those against AirBnB. Again, if the hotel owners pursue condo/co-op conversions, they will at least salvage their capital investment in the business that failed.
It may be that way in other areas, but in NYC the city will come down like the Hammer of Thor on anyone who does short term rentals in residential buildings. So, no.
And AirBnB is getting pushback all over. I know Barcelona is cracking down on them. Closer to us, Jersey City, which was AirBnB friendly just passed and anti-short term rental ordinance.
Really, with all the pushback, I think they've peaked, and are likely to crash.
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Originally Posted by BPt111
Right now Airbnb is 25% of market share I will say in 2 years it will 40-50% hotels will be shutting their doors especially NYC
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