Hotel Room Subject to Luxury Deregulation

Facts: Landlord sued to evict tenant from hotel room in a Class B multiple dwelling for nonpayment of rent. Tenant claimed landlord's petition was defective. It stated that tenant's room wasn't subject to rent stabilization because of luxury deregulation. Tenant claimed that hotel-stabilized units weren't subject to this exemption from rent stabilization. Court: Landlord wins. There had been no permanent tenant in the room for the four years prior to current tenant's filing of an overcharge complaint. Under the Rent Stabilization Code, a unit is exempt from hotel stabilization when occupied by transients. By law, the court is barred from examining the rent history for the unit for any period prior to four years before an overcharge claim is raised. In addition, the last rent paid for the room by the prior occupant was $115 per day, which equals a monthly rent of well over $2,000. So the room was exempt from stabilization under the high rent provisions of the Rent Stabilization Law.

Martha H. Washington Hotel v. Prince: NYLJ, p. 29, col. 6 (5/5/99) (Civ. Ct. NY; Malatzky, J)