Allegations of Prostitution at Manhattan Hotel Prompt Lawsuit

A two-star hotel nestled in Midtown Manhattan has come under scrutiny for alleged connections to prostitution, leading the city to file a lawsuit aimed at securing its permanent shutdown.

Located at 38 W. 31st St., known as the Nomad Suite, the hotel features double glass doors that open into a cramped lobby where tourists navigate their luggage. However, local residents report a starkly different atmosphere at night.

“I often see women dressed up as if heading to a club, coming and going late at night with different men,” shared a man living at Nomad Suites through a short-term Airbnb rental. He preferred to remain anonymous. “Initially, I thought they were just hosting a party. Now I’m beginning to see things more clearly.”

The lawsuit, which surfaced in court documents obtained recently, claims that the hotel has turned into a hub for illegal sex work. This follows two undercover operations conducted by the NYPD that began in late 2025.

The complaint, filed in Manhattan Supreme Court on Monday, accuses the hotel’s owners and operators of maintaining its image as a legitimate establishment while allowing illicit activities within. It asks for a one-year closure and daily fines of $1,000 aimed at the landlord, 1234 Broadway LLC, among other defendants. Attempts to reach spokespeople for the ownership group have thus far been unsuccessful. As of now, no criminal charges have been brought in relation to these allegations.

Previously, in 2021, the building served briefly as a city-run homeless shelter, a mission that ended tragically when a 36-year-old man was fatally stabbed there, resulting in its closure.

Now, the site has transitioned back into civilian use but operates as a hybrid model, offering both hotel accommodations and Airbnb rentals. Current listings indicate around 13 short-term suites alongside additional rental units.

One Airbnb listing for the building claims to be “one of the few fully legal Airbnbs in Manhattan.”

According to the lawsuit, the undercover NYPD operations revealed that residents were soliciting sexual services. In one incident, an officer was offered manual stimulation for $100 and oral sex for $150, as detailed in the complaint.

The authorities allege that while the hotel presents an upscale image through its online listings, the reality within its premises is starkly different. “These advertisements…contained explicit images and suggestive language,” the complaint notes, citing ads that feature phrases like “We are cute and sexy Asian girls” and “Sexy bodies.”

On September 4, 2025, a police officer reported being offered services in Suite 142, including a massage and manual stimulation for $100. The following week, another officer claimed a woman agreed to provide oral sex for $150 alongside a $100 charge for “30 minutes of massage therapy.”

Despite the hotel’s polished online persona, city officials assert that illegal activities flourish behind its façade.

The complaint accuses defendants of knowingly allowing the property to be used for prostitution, facilitating or even tolerating the illegal activities there.

A couple from Greensboro, North Carolina, who stayed at Nomad Suites expressed that while they hadn’t seen anything outright suspicious, they certainly heard disturbances at night. They requested to remain anonymous, mentioning, “There’s a lot of shouting and some inebriated individuals, but nothing that screamed illegal activities. It’s pretty wild.”

Meanwhile, four other men sharing an Airbnb unit admitted they had no idea the property was under investigation.

“I thought it was just a typical Airbnb,” one remarked. “I’ve been strolling around the area, oblivious to any issues.”

While many out-of-town guests remain unaware of the ongoing situation, local residents have voiced concerns. The complaint notes multiple reports made to the NYPD in July and August 2025, alleging prostitution at the location.

Nearby, a fragrance store operated by the same landlord under scrutiny raised concerns over the impact of this lawsuit on their business. The store owner, who also chose to remain unnamed, expressed worries that a building closure could affect his clientele, largely composed of international visitors.

“The volume of people coming in and out makes it tough to monitor,” he noted. “But if the city shuts that place down, it might endanger my store too.”

With guests and tenants regularly cycling through, officials assert that the hotel has become an ideal cover for unlawful activities.

A jewelry store manager across the street also opted to remain anonymous, but shared that his store shuts down early, long before the streets grow lively.

“I wouldn’t see anything,” he lamented. “We leave before dark to avoid any trouble. Who knows what goes on later?”