From AMNY: Report: 200 illegal hotels exist in the city
There are more than 200 apartment buildings in the city that have been illegally converted to hotels, according to a report released Sunday, significantly reducing the number of rent-stabilized units available.
Illegal hotel operators frequently take advantage of tax loopholes designed to encourage the construction of residential units, according to Raskin.
Advocates are calling for increased penalties and changes in the zoning laws to clarify where hotels can and cannot operate.
And today’s Sun: Crackdown Sought on Illegal Hotels in the City
What does this tell us about the housing/hotel markets? It seems to me that tax structures (and probably zoning) favor housing, while there is significant unmet demand for hotel rooms. Nonetheless, there is definitely a shortage of built space in NYC, which could be better accommodated by loosening zoning restrictions on new development. Any other thoughts?