News Summary
LuxUrban Hotels has unexpectedly shut down several locations in Manhattan, leaving guests stranded and facing service issues. The closures, including the Tuscany Hotel, resulted in guests being turned away without warning. Reports of inadequate staffing and unpaid employees surfaced, escalating concerns after a fire department inspection. The situation has left many guests who prepaid for their stays with no recourse. Current and former employees express distress over unpaid wages and uncertain job statuses. This event unfolds amid broader challenges in New York City’s hotel and social service sectors, highlighting significant operational difficulties.
New York City – LuxUrban Hotels has abruptly closed multiple locations in Manhattan, impacting families and tourists who were scheduled to check in at various properties, including the Tuscany Hotel. Guests reported that they were turned away without any prior warning, leaving them stranded and frustrated.
Reports from guests have indicated a severe lack of services at the Tuscany Hotel, where many claimed they did not receive housekeeping during their stay and noted the absence of adequate staff. The head of housekeeping revealed that employees had stopped working after LuxUrban allegedly failed to make payroll. At the time of closure, only two staff members remained on-site, and they also had not received their wages.
Concerns escalated when an inspection by the Fire Department of New York (FDNY) found the Tuscany Hotel operating without necessary staff. Following this inspection, multiple violations were issued, leading to the hotel being vacated just four days later. Other LuxUrban properties, such as Hotel 27 and The Herald, also shut their doors, leaving guests who had pre-paid for their stays with no recourse.
A family from Argentina expressed disbelief after being denied entry at Hotel 27, despite having confirmed their reservation and paid in advance. Similar stories have emerged from numerous guests across the affected hotels, emphasizing the logistical challenges they now face.
Current and former hotel workers have voiced their distress over their employment situation. Many feel they are caught in a limbo where they cannot access unemployment benefits since they are still considered employed but have not been paid. The union acting on behalf of hotel workers has noted ongoing issues with LuxUrban and highlighted that it had previously secured arbitration awards for unpaid wages. However, management from LuxUrban has mostly remained unresponsive to inquiries regarding the closures.
The Hotel Trades Council remarked that the properties essentially “disappeared overnight,” with little to no notice given to either staff or guests about the impending closures.
In a larger context, the hotel closures take place against a backdrop of significant changes in New York City regarding its shelter accommodations for migrants. Over 200,000 migrants have been helped by the city in transitioning out of the shelter system. The Row NYC Hotel, which was the last standing hotel housing migrants, will see its contract expire in April, leading to further concerns about where remaining migrants will go.
NYC Mayor Eric Adams announced that operations at the Roosevelt Hotel would conclude, which had served as an intake center for migrants. Since its inception as a shelter in 2023, the Roosevelt has provided essential services like registration and legal assistance while accommodating tens of thousands of individuals. Currently, about 37,000 migrants remain in city shelters, a substantial drop from a peak of nearly 70,000, attributed to a decrease in arrivals.
Despite the reduction in shelter populations, concern has grown regarding adequate housing alternatives for vulnerable individuals, especially those with disabilities, as shelters like the Roosevelt begin to close. Critics have pointed out that the Roosevelt was plagued with issues, including criminal activities associated with certain residents. Future plans for the Roosevelt Hotel remain uncertain, with speculation about either new guest receptions or potential development projects initiated by its owners.
The unfolding situations at LuxUrban hotels and city shelters underscore the challenges faced in the hospitality and social services sectors, both significantly affected by economic pressures and management decisions.
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HERE Resources
Additional Resources
- ABC7 NY
- AP News
- CBS News
- The New York Times
- W42ST
- Wikipedia: Migrant Crisis in the United States
- Encyclopedia Britannica: Migration
- Google Search: New York City migrant hotels
- Google Scholar: NYC migrant shelters
- Google News: New York migrant hotel closures
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
