There is another article about these hostel closures at the NY Post:

"The city obtained a temporary injunction Thursday to shut down the unsafe, violation-riddled hotels operating in residential buildings on 94th and 95th streets on the Upper West Side, known as The Candy Hostel, The Continental and The Pennington."

[...]

The three hotels - which rent rooms to European tourists for between $50 and $150 a night - were illegally operating out of three connected single-room-occupancy buildings, robbing the city of dozens of affordable units and making life miserable for legit, long-term tenants.