Home News Decline in Migrants Leads to NYC Shelter Closures, Hotel Industry Faces Reconversion Crossroads

Decline in Migrants Leads to NYC Shelter Closures, Hotel Industry Faces Reconversion Crossroads

Decline in Migrants Leads to NYC Shelter Closures, Hotel Industry Faces Reconversion Crossroads

The stream of migrants arriving in New York City has recently seen a decrease, prompting the closure of shelters previously brimming with families in transit.

ABC7 New York

reports that the migrant population residing in city shelters has dipped, with a dynamic new trend emerging: for every 600 migrants arriving, some 1,400 are now leaving. Hotels that had been transformed into temporary migrant shelters are to potentially resume their original roles in the hospitality industry as contracts with the city are wound down.

Despite the shifts in migrant housing, the city’s shelter system may not immediately bounce back to its pre-crisis state. According to New York City Deputy Mayor Anne Williams-Isom, the city’s shelter system could take as much as two years to stabilize, despite the decline in migrant numbers. As the current crisis begins to temper, and the hotels used as shelters find themselves untangled from their contracts, some of these establishments are opting not quickly to convert to permanent housing solutions. This comes as the hotel sector itself appears to be reaching a critical point of decision, as detailed by

Crain’s New York

, which highlights the complexities involved in repurposing these spaces into apartments.

A real challenge for such conversions is the size and layout of typical hotel rooms, often too small for apartment standards. David Beers, director of the nonprofit affordable housing developer Breaking Ground, underscored in his statement obtained by

Crain’s New York

the significant hurdles faced in repurposing these structures, citing stringent labor agreements and the exorbitant cost of severances as major financial deterrents. While Breaking Ground has had successes converting hotels into housing, such as the 491-unit facility at 90 Sands St., not all properties present viable opportunities for such transformations.

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Despite developers like Slate Property Group showing interest in the hotel-to-housing model, others are cautiously monitoring the situation.

Crain’s New York

quoted David Schwartz, co-founder of Slate Property Group, expressing the need for a “proof of concept” to gain wider confidence in these transformations. Even as the city’s tourism industry starts to recover to near pre-pandemic levels, the demand for affordable housing continues to exert pressure on the market to find creative solutions. The Economic Development Corp.’s Andrew Kimball noted the balancing act between tourism and housing needs, leaving open the possibility that some hotels could be converted despite the renewed influx of visitors.

On the neighborhood level, residents express a mix of sentiments towards the relocation of migrants. Bren Guillot, a Hell’s Kitchen resident living near the now-shuttered Hotel Merit, told

ABC7 New York

that the migrant families were “very hard working” and hoped they would be able to stay. Meanwhile, former hotel residents like Eduardo Quinones-Araujo have begun integrating into the city’s fabric, finding jobs, and seeking permanent residence, a testament to the ongoing transition and adaptation of newcomers and the city alike.

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