Struggling New York City hotels want Mayor Bill de Blasio to forgive the 18% interest they must pay when they are late on their property-tax bills, Bloomberg News reported. A trade group that represents brands such as Marriott, Hilton and Sheraton as well as smaller boutique hotels is asking the city to forgive or reduce interest charges, much as it has done with other commercial properties. They say the added payments burden an industry pummeled by the pandemic, and if the city wants hotels alive when tourists return, it should offer relief. New York hotel rooms were 36% occupied in December 2020, down from 88% a year ago, according to lodging data provider STR. Rooms went for an average $130 a night in December, down from $303 a year ago, STR said. Vijay Dandapani, president of the Hotel Association of New York City, which asked for the relief, said the industry is like a critically ill patient clinging to life. He estimates the occupancy rate in the city is closer to 10%. “You’re just going to have hotels go belly up permanently if you charge 18% on top of a property tax that’s already a struggle to pay,” Dandapani said. “There’s a chance of revival if you’re comatose, but if you’re dead, there’s no coming back.” At stake is tens of millions of public dollars derived from property taxes and penalties. Budget officials expect the city to lose about $10.5 billion in revenue through June of 2022 due to the pandemic. That’s created challenges in balancing the $92 billion budget.
