NYC Lacks Hotel Rooms for FIFA World Cup, Business Leaders Push to Lift Airbnb Rules

New York City Faces Hotel Room Shortage Ahead of Major Events

New York City is under pressure from business leaders to relax its restrictions on short-term rental platforms like Airbnb in preparation for a surge of visitors during the 2026 FIFA World Cup, the country’s 250th anniversary celebrations, and Fleet Week. The Partnership for New York City and chambers of commerce across all five boroughs have urged Mayor Zohran Mamdani and City Council Speaker Julie Menin to temporarily suspend current short-term rental laws from June 1 to July 31.

The groups argue that the city’s existing hotel capacity—roughly 135,000 rooms—is already at near-full occupancy, with rates hovering close to 97%. They warn that without additional accommodations, hotel prices could become unaffordable for local families, leading to economic leakage as visitors opt to stay in New Jersey or suburban areas instead.

“Without additional capacity, hotel prices will surge beyond the reach of working families, spending will leak to New Jersey and the suburbs, and neighborhoods hosting events across the outer boroughs—where only 20% of hotel rooms are located—will see visitors but capture none of the overnight economic impact,” the letter states. It also emphasizes that the city risks sending a negative message globally about its ability to manage large-scale hospitality events.

Despite these concerns, the mayor’s office has not yet commented on the letter. However, officials have said they plan to meet with business leaders next week to discuss their concerns before the World Cup begins.

Airbnb and other home-sharing platforms are not officially banned in New York City, but the current regulations make them largely unusable. A 2023 short-term rental law limits stays to 30 days and requires hosts to register with the city, facing heavy fines if they don’t. Additionally, the law restricts the number of guests per booking to two, which has significantly reduced the availability of short-term rentals.

Airbnb has invested millions in lobbying efforts to loosen these rules, arguing that the Hotel Association of New York City and powerful hotel unions are behind the stringent regulations. On the other hand, supporters of the law claim that home-sharing platforms reduce housing affordability by taking units off the market.

The Manhattan Chamber of Commerce has launched a digital campaign and petition to gain public support for a temporary suspension of the short-term rental ban. Their message is clear: “Act Now, NYC! Or our sales will go to New Jersey this summer.”

According to the letter, approximately 1.2 million visitors are expected to come to the region for eight World Cup games at MetLife Stadium. Another 6 million people are anticipated for events related to the country’s 250th anniversary, which will coincide with Fleet Week this year.

However, Vijay Dandapani, CEO of the Hotel Association of New York City, disputes the claims of a hotel room shortage. He calls the letter “an absolute falsity and a red herring,” accusing it of being a propaganda piece backed by Airbnb. Dandapani claims that FIFA has been canceling room blocks in New York due to insufficient demand.

Airbnb is a member of the Manhattan Chamber of Commerce, whose chief executive, Jessica Walker, recently testified at the City Council. She recommended a narrow suspension of the short-term rental ban during the World Cup window, stating that it would cost the city nothing while preventing potential losses of hundreds of millions of dollars.

Walker toldThe Postthat the request is reasonable and temporary, adding that the group represents small businesses. She emphasized that the proposal includes guardrails to ensure it doesn’t lead to long-term policy changes.

Other cities, such as New Orleans, Kansas City, and several southern California cities, have already adjusted their short-term rental policies to accommodate major events. This trend highlights the growing need for flexibility in housing regulations during peak travel seasons.