New York City is considered the financial capital of the world given the unparalleled presence of international banking and investment institutions, as well as an international cultural and tourism destination. Historically, New York City has been among the top-performing United States lodging markets, achieving occupancy levels well above 80.0% in years not affected by economic downturns. In 2024, occupancy reached 84.0%, remaining below the peak pre-pandemic occupancy levels, while ADR surpassed $318 in 2024, helping RevPAR remain at an all-time high. Continued strong leisure demand, an increase in meetings and groups, and the ongoing return of commercial demand contributed to this trend. Hotel owners and operators have begun to observe the softening of some international demand (particularly from Canada and western Europe) in 2025. It is uncertain how the new federal policies may affect demand for the remainder of 2025. Although the supply pipeline remains dense, factors such as the pandemic-related hotel closures and building-use conversions, the December 2021 Citywide Hotels Text Amendment, and the Local Law 18 restrictions on short-term rental properties should mitigate the impact of new supply. Moreover, NYC's role as an international center for business and tourism should allow the market's RevPAR to continue to grow.

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