New York City is considered the financial capital of the world, with international banking and investment institutions generating year-round commercial demand. It is also an international cultural destination, drawing leisure travelers by the millions each year. As such, New York City has historically been among the top-performing lodging markets in the United States and achieved occupancy levels well above 80.0% in years that were not affected by economic downturns. In 2023, occupancy reached the 80.0% mark again, similar to levels of the early 2010s but still below the peak occupancy period of 2014 through 2019. ADR, on the other hand, surpassed $300 in 2023, and RevPAR reached an all-time high. Factors contributing to this trend included continued strong leisure demand, an increase in meetings and groups, and the continued return of commercial demand. The outlook for 2024 is favorable. Although the supply pipeline remains dense, the pandemic-related hotel closures and building-use conversions, the cancellation of other projects, the December 2021 Citywide Hotels Text Amendment (to the NYC Zoning Resolution), 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.

Legend