Big question marks for New York City’s hotel industry as migrant shelter era winds down

Big question marks for New York City’s hotel industry as migrant shelter era winds down

Hotels that had been financially distressed are losing a lucrative lifeline from the city.

By Rebecca Baird-Remba 

April 7, 2025

Hotels were struggling at the height of the COVID-19 pandemic, and New York City Mayor Eric Adams’ administration offered a lifeline to some of the city’s most cash-strapped operators by awarding them over $1 billion to house the surge of newly arrived migrants.

Now, some of those contracts are set to expire as City Hall pushes forward with its plan to shutter 53 migrant shelters by June. The administration said in February there were fewer than 45,000 migrants living in city shelters, down from a January 2024 high of 69,000, and arguing that closing the hotels was justified.