New York City will spend $250 million to get hotel rooms ready for coronavirus patients and first responders

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New York City will spend $250 million to get hotel rooms ready for coronavirus patients and first responders
plaza hotel entrance

Shutterstock/Sean Pavone

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The Plaza was one of the first New York City hotels to offer its rooms to patients and healthcare workers, Governor Andrew Cuomo announced in a tweet on March 26.

  • New York City wants to get coronavirus patients, first responders, and other at-risk residents who don't require critical care out of hospitals and into hotels, spending $250 million to put a process in place.
  • Last week, the city inked a deal with Texas-based travel and logistics management company CrewFacilities to oversee the logistics of the hotel-to-hospital conversion.
  • Governor Andrew Cuomo believes that "the worst is over" for New York City, but cautioned New Yorkers on Monday not to lose focus.
  • Visit Business Insider's homepage for more stories.

New York City Mayor Bill de Blasio has pledged to open "thousands and thousands" of hotel rooms to coronavirus patients and first responders to the relieve the burden on hospitals - and he's spending hundreds of millions to make sure it happens quickly.

Last week, the city inked a $250 million contract with CrewFacilities, a women-owned travel and logistics management company based in Texas, to oversee the process of placing at-risk residents in hotels, Politico reported. CrewFacilities will manage everything from establishing a network of hotels, to coordinating booking, invoicing, and payments, according to a company release.

The Hotel Association of New York City is in talks with the city about finalizing an agreement that will open its 300 hotels to coronavirus patients, according to the New York Post. On April 1, over 60 New York City hotels were preparing to offer their rooms to those in need, the Commercial Observer reported.

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Data released last week by hospitality analytics company STR revealed that over 80% of New York hotel rooms were unoccupied during the first week of April.

Governor Andrew Cuomo believes that "the worst is over" for the New York City, as infection and death rates slow, but remains cautious. "Do not reverse the progress we have made in our zeal to reopen. That's our challenge going forward," he said at a press conference in Albany on Monday.

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