New NYC rental regs my only benefit extended-stay hotels

An STR spokesperson said in an interview this week that not every traveler denied short-term rentals by NYC's new stricter regulations will likely become instead a hotel guest.

(To offer rentals for periods of less than 30 days, owners must now register with the city and commit to being physically present in the home for the duration of the rental. And rentals to parties of more than 2 people are not allowed.)

Because the guest profile of short-term-rental users is similar to that of extended-stay-hotel users, some such individuals might readily switch to that kind of hotel. But people who tend to book other types of hotels may not have been substituting short-term rentals often or at all.

Extended-stay hotels comprise only about 5% of the NYC hotel room inventory.

But some room inventory being taken out of the normal mix for immigrant housing - and new regulations that make it more difficult to get plans for new hotels approved - also contribute to a tightening of the visitor bed supply.

And any room shortfall in meeting demand could result in higher rates for hotels other than extended-stay.

What will happen to NYC hotel rates? Stay tuned.