Expect a shift in New York City’s short-term rental demand,
resulting in hotels gaining up to 2.2 million room nights in 2024.
NEW YORK CITY – In early September 2023, New York City’s implementation of
Local Law 18 caused significant downward pressure on the short-term rental
market, according to a new report from JLL Hotels & Hospitality.
It’s anticipated that the total supply of existing
short-term rental listings will decline by nearly 32,000 by 2024. Although some
listings may return as permits are approved, the overall short-term rental
stock is expected to decrease by 70% in the medium-to-long-term, which is
equivalent to the closure of 107 hotels.
Following the enforcement of the short-term rental ban, New
York City hotels are well-positioned to benefit, JLL reported. New York City
currently ranks #1 for flight searches worldwide and Google searches for “NYC
Hotel” have spiked 33% in the first week of September relative to the prior 60
days and are currently trending at their 52- week high.
Expect a shift in New York City’s short-term rental demand,
resulting in hotels gaining up to 2.2 million room nights in 2024. This
increase is in addition to the projected growth forecasted for hotels, which
would lead to an additional 4.3 percentage point in occupancy.
As a result, look for New York City hotels to
gain $380.4 million in incremental room revenue, following the enforcement of
Local Law 18 as travelers will still require accommodations amidst the
significant decline in short-term supply. This could result in up to $7.35 in
incremental RevPAR for the hotel market, pushing the city to levels not seen
since prior to the Great Financial Crisis.