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, achieving occupancy levels well above 80.0% in years that were not affected by economic downturns. In 2023, occupancy surpassed the 80.0% mark, while ADR exceeded $300, boosting RevPAR beyond pre-pandemic levels that year. Modest occupancy and ADR growth continued through 2024. Factors contributing to this trend include continued strong leisure demand, increased meeting/group demand, and the ongoing return of commercial demand. The market outlook 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 (enforcement commenced on September 5, 2023) should mitigate the impact of new lodging supply. Moreover, the city's role as an international center for business and tourism should allow the market's RevPAR level to continue to grow.

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