NYC bill aims to revive struggling hostel industry

TRD New York /
Jun.June 25, 2013 02:30 PM

A piece of legislation that would permit the licensing of hostels in the city is slowly snaking its way through City Council, the New York Observer reported.

The new law is part of an effort to correct the damage wrought by a 2010 bill — later crystallized into New York’s illegal hotel law — aimed at snuffing out short-term single-room occupancy residences and illegal multiple-dwelling lodgings that also wreaked havoc on the city’s hostel industry.

Resulting hostel closings cost the city $150 million and more than 200,000 tourists every year, according to some studies’ estimates.

Jerry Kremer, a former New York State assemblyman and founder of Empire Government Strategies, is behind the bill, which Mayor Bloomberg and Speaker Christine Quinn also support.

The measure calls for setting up an independent office within the city Business Integrity Commission for licensed hostels, defined as “class B multiple dwellings providing food, lodging and other services to travelers.” A hostel unit, by the law’s definition, sleeps four to eight guests and does not permit stays of more than 29 days.

The push to develop hostels in New York City comes alongside a growing trend towards funky boutique hotels and hostels, such as the New York Freehand location proposed by Sydell Group in May. The developer purchased three parcels on Wythe Avenue in Williamsburg, a neighborhood pegged as a potential hostel hotspot, for $10 million last year.

“The city is very underserved by affordable options for the youth and budget traveler, and this is not good for the culture of the city or for the economy,” Andrew Zobler, founder and chief executive of the Sydell Group, told the Observer. [NYO]Julie Strickland

 

Related Articles

arrow_forward_ios
RedSky Capital's Benjamin Bernstein and 247 Bedford Avenue (Credit:  ICSC and Apple)

Williamsburg whiz kids facing major markdown on $1B retail portfolio

227 Grand Street in Williamsburg and Michael Lichtenstein of Heritage Equity Partners (Credit: Google Maps, Heritage Equity Partners)

It’s bankruptcy time for Michael Lichtenstein LLC in Williamsburg

REBNY president Jim Whelan (right) and Council member Robert Cornegy (Credit: Getty Images and iStock)

REBNY asks city to help landlords pay for lead abatement

93 North 9th Street in Williamsburg, Thor Equities' Joe Sitt, and a KAWS statue (Credit: Google Maps and Jim Bowen via Flickr)

Acclaimed artist KAWS pays $17M to expand Williamsburg studio

166 Berry Street in Brooklyn and Wharton Properties’ Jeff Sutton (Credit: Google Maps)

Jeff Sutton pays record price in Williamsburg: brokers

A rendering of  280 Meeker Avenue CW Realty Management CEO Cheskie Weisz (CW Realty Management)

CW Realty to bring mixed-use project to troubled Williamsburg site

269 Wallabout Street in Williamsburg (Credit: Google Maps)

On to the next one: Rabsky planning yet another Brooklyn project

58 Union Avenue (Credit: Google Maps)

Brooklyn binge: Rabsky Group plans to bring 65-unit project to Williamsburg

arrow_forward_ios