New York City’s hotel sector is having a standout 2025, outperforming the national market despite recent challenges. In the first half of the year, NYC hotels reached an average weekly occupancy rate of 82%, beating the national average by 20 percentage points. Revenue per available room hit $238.93 per night, more than double the U.S. average.

The city welcomed 64 million visitors last year and expects similar numbers in 2025, driven mainly by domestic tourism. Business travel, which makes up about 20% of hotel bookings, is also on the rise.

Local regulations have contributed to the sector’s strength: since 2021, new hotel projects face strict permitting rules, limiting new supply. In 2023, crackdowns on short-term rentals removed 10,000 Airbnb listings, driving more demand toward hotels.

However, the market faces new challenges. Travel from abroad is slowing due to tougher visa policies, and rising economic uncertainty may weigh on domestic tourism in the months ahead.

(source: The Real Deal, picture: Tomas Martinez)