Airbnb crackdown is a windfall for New York City hotels
Business is booming for New York City's hotels, and the city's recent crackdown on short-term rentals may be a driving force.
New York enjoyed the highest December occupancy of any top 25 market in the U.S. at 86.6%, according to STR. The city's average daily rate (ADR) also surged in December, rising nearly 11% to $393, while revenue per available room (RevPAR) shot up 15.6%.
That compares with a national December RevPAR average increase of just 0.3%.
The spikes coincide with a plummeting of availability for short-term rentals of 30 days or fewer, which went from approximately 13,500 listings in August to under 3,000 in December, according to data from AirDNA, due to a New York City law enacted last year that made rental requirements much more onerous for hosts.
Jan Freitag, senior vice president of lodging insights for STR, noted the correlation, saying the city had a "very strong showing" in December, the first full month that the city's short-term rental enforcement went into effect. But he also emphasized that New York was concurrently benefiting from other tail winds that month, including high levels of holiday-related demand and a comeback in international inbound tourism, at the close of 2023.
"We are really seeing a return of international travelers, and I don't think it's unreasonable to think that New York has a unique pull for international travelers in particular," Freitag said.
