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 U.S. lodging markets, achieving occupancy levels well above 80.0% in years not affected by economic downturns. In 2024, occupancy reached 84.0%, below the peak pre-pandemic occupancy levels, while ADR surpassed $318, helping RevPAR remain at an all-time high. In 2025, occupancy remained relatively flat year-over-year, while modest ADR growth continued. Geopolitical factors and new federal policies influenced the softening of some international demand, particularly from Canada and western Europe. It is uncertain how the new federal policies may affect demand in 2026. The 2026 FIFA World Cup tournaments and America250 events are expected to boost ADR levels to some degree in 2026. Although the supply pipeline remains dense, factors such as the pandemic-related hotel closures and building-use conversions, the 2021 Citywide Hotels Text Amendment, the Safe Hotels Act, and the Local Law 18 (short-term rental property) restrictions 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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