May 17, 2005. Despite record tourism and business travel levels, the wave of conversions of high-end hotel rooms to luxury condominiums is costing the city dearly in terms of hotel jobs. Over 3,200 Manhattan hotel rooms will be lost in 2004 and 2005 and another 3,000 hotel rooms are in jeopardy of conversion. As a result of conversions, hotel employment in New York City has fallen by 2,200 or five percent since September 2004.
Considering the importance of a prosperous tourism sector to the city’s economy and the critical jobs that the hotel and related tourism industries provide to New York City residents, limiting conversions of valuable hotel rooms is a sound economic policy response to the frenzied luxury condo market’s negative impact on the normal operation of the hotel real estate market. Press release >> Report >>