Building owners have long dabbled in the hospitality industry, illegally renting out empty units in their properties on a short-term or nightly basis. But in a new twist, the clandestine hotels are popping up in luxury apartment buildings in the financial district, where developers have struggled to sell all their units.
Hotels spring up in unsold condos
The downtown building boom led to a glut of luxury condo developments in former office buildings near Wall Street. As several of these high-rises remain unfilled, developers and landlords are making “other arrangements” to squeeze a return out of their investment.
Offering these vacant units as short-term “corporate housing,” which falls into a gray area of the law, they've found willing occupants in the influx of visiting professionals dealing with the unraveling of Wall Street, as well as tourists looking for deals.