NYC hotel plans and changes

July 21, 2015
in Category: Business
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NYC hotel plans and changes

One of the most riveting story lines facing New York City today revolves around the conversation of hotels and apartments. One can barely leave their home in the morning without facing conversation about rising housing costs, AirBNB, or hotels. One of the biggest concerns people have is that companies are utilizing spaces that one would be used for residential or office space as hotels. This creates an increase in housing costs and pushes low income residents further and further away from the city. This is why many were pleased to hear that Ed Scheetz, the investor who had planned to bring a new hotel to the area has halted plans to build hotels.

The news came after it had been announced that the buildings, instead of being turned into hotels, were sold to New York University. NYU has said that they will be using the building as an interim athletic facility. Instead of being turned into a high rise hotel, the buildings will be utilized by the university system, benefiting low income students, instead of high-income hotel patrons who would be spending their time in the building had it not been for NYU.

Housing is one of the most complex issues facing NYC today and there is not a whole lot being done to stop it. Unless more companies decide that affordable housing and services are more important than high cost hotels, housing costs will keep going up. However the demand for hotels and luxury housing in NYC is too great for business people to not take advantage.

Tourists are coming to the city in record numbers and developers are doing their best to keep up with demand. What developers do not realize is that when they build high cost hotels, they are driving up rent in the city. This makes it nearly impossible for low income workers to work and live in the city. Many low income workers travel more than an hour via public transportation to get to work. Many believe this is a product of the luxury hotel industry, who keep buying up apartment buildings and turn them into hotels.