PUBLIC TESTIMONY
Testimony by Anudeep Gosal, Director of Hotel Advisory Group at Besen Partners
2:28:27
·
123 sec
Anudeep Gosal, Director of the Hotel Advisory Group at Besen Partners, expresses opposition to the proposed hotel licensing bill, arguing that it will have negative effects on the hotel industry and tourism in New York City. He cites concerns about room shortages, rising costs, and the potential for pricing out budget-conscious travelers.
- Gosal claims the bill will have effects similar to the 2021 special permitting legislation, which restricted hotel development and led to a shortage of rooms.
- He presents data showing significant increases in average daily rates (ADR) and occupancy rates, which he attributes to restrictive legislation rather than organic growth.
- The speaker warns that if the trend continues, New York City's tourism economy risks becoming accessible only to wealthy travelers, potentially deterring future tourism.
Anudeep Gosal
2:28:27
Thank you council members for allowing me to speak today.
2:28:30
My name is Anadip Kussal.
2:28:31
I'm the director of the Hotel Advisory Group at Besen Partners.
2:28:34
A local real estate firm in New York City since 1980.
2:28:37
I'm here today to express my opposition to this bill as a hospitality adviser is my professional opinion that this bill will have effects similar to the special permitting legislation introduced in 2021.
2:28:48
Which severely restricted new hotel development.
2:28:51
These restrictions have led to a shortage of hotel rooms, driving up the average daily rate and occupancy rates, making the city increasingly affordable for travelers, and creating an affordability crisis within tourism.
2:29:03
As of 2023, New York City has approximately 125,000 rooms, which is not enough to meet the growing demand.
2:29:10
The bottleneck in new hotel developments is a direct result of restrictive legislation.
2:29:16
Rising costs in ADR RevPAR and occupancy rates.
2:29:19
In 2023, the average ADR was $201.
2:29:23
It has now surged to 255 in 2024.
2:29:28
That's an increase of over 25% in 1 year alone.
2:29:32
A similar situation is occurring with the occupancy rates.
2:29:36
However, higher occupancies in this context does not reflect a healthy market.
2:29:41
It is driven by a shortage of rooms due to restrictive legislations, rather than organic growth in demand.
2:29:48
New York City in 2023 at 62,000,000 visitors, but rising hotel prices threaten to deter future tourism.
2:29:55
The city currently has one of the lowest supply growth rates in the country at less than 1% fueling the shortage.
2:30:02
Budget conscious travelers and middle income families are being priced out as fewer affordable hotels.
2:30:08
Our options fewer affordable hotel options are available.
2:30:12
Many tourists are choosing more affordable destinations.
2:30:16
As even midscale and economy hotels in New York City are now approaching the $200 mark, making them increasingly unaffordable.
2:30:23
If this trend continues, my fear is New York City's tourism economy is at risk and it will only be accessible to wealthy travelers.
