Hospitality.net: New York City moves to limit new hotel development
October 22, 2021
A proposal to require all newly built hotels to secure a special permit is one step closer to becoming law in New York City.
Designed by Mayor Bill de Blasio to curtail the development of new hotels, the controversial bill has faced backlash from members of the real estate industry who say it would stifle the hospitality sector’s recovery. The measure is supported, however, by the Hotel Association of New York City, which says the limits on development would help existing hotels stay competitive.
There was “an unprecedented development boom that saw the hotel market almost double in size from 74,000 in 2007 to 138,000-plus rooms in 2020,” Vijay Dandapani, chief of the association, wrote in a New York Daily News op-ed in July. “Oversupply has been the direct cause of consistent declines in revenue-per-available room.”
Some members of the City Planning Commission criticized the proposal during a meeting Wednesday, but the agency then voted 9-2 to approve the measure. The bill now moves to a hearing and subsequent vote before the City Council.