[JamesBarney]

Hotels will get more expensive, competition does not limit the effects of supply and demand. But rents will become less expensive.

[AnthonyMouse]

These effects are not required to occur in equal amounts, however. 40,000 units is a much larger proportion of the short-term rental stock than of the total NYC area housing stock.

[JamesBarney]

Of course they'll have a much larger effect on hotel price than rental price. Hotels have more elastic demand (people can visit other places) and less elastic supply (building new hotels is effectively banned under NYC law).