Mayor Eric Adams’ administration quietly signed a $929 million contract extension with the hotel industry to occupy space for emergency shelters, according to a New York Post article cited by The Real Deal. The contract started at the beginning of the year and is set to run through next June. The contract was competitively bid, according to the mayor’s office. The hefty dollar figure represents a maximum, not a guarantee. There are roughly 86,000 homeless individuals and asylum seekers in the city today. It costs $352 per night to house someone in an emergency shelter, according to city officials. The hotel rooms will be used by social services vendors, according to the Department of Homeless Services. The Hotel Association of New York City will match the city with hotels willing to set aside rooms for shelters in exchange for rent payments; the association collects a fee for administrative expenses. Critics of the latest contract argue that it takes hotel units off the market, potentially increasing the costs for guests to rent a room in the city; last year, the average daily price for a hotel room in New York City reached an all-time high of $417.
https://therealdeal.com/new-york/2025/06/23/city-paying-hotel-industry-930m-for-emergency-shelters/
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