News Summary
New York City exhibits strong hotel occupancy rates at 86.6%, contrasting with a national decline to 63.4%. Major events and business travel support this resilience, despite lower international tourist numbers. Challenges such as rising labor costs and economic uncertainties loom ahead for the local hotel industry.
New York City continues to showcase a resilient hotel occupancy rate amidst a downward trend in the overall U.S. hotel industry. As of September 2025, New York City reported an occupancy level of 86.6%, marking only a slight decline of 0.5% from the previous year. This stands in contrast to the national occupancy rate, which dropped to 63.4%, a 1.9% decrease compared to September 2024.
The strong performance in New York City is attributed to a series of major events that drew large crowds, including Fashion Week, the U.S. Open, and the UN General Assembly. These notable gatherings have helped maintain steady occupancy levels, even as other major cities like New Orleans and Houston struggled with significantly lower rates of 48.5% and 55.6%, respectively. In particular, Houston’s decline has been exacerbated by the effects of Hurricane Beryl in 2024.
Despite the strong occupancy rates in NYC, the broader national hotel industry has seen several troubling trends. The average daily rate (ADR) for hotel rooms across the U.S. decreased by 0.1% to $162.69, and revenue per available room (RevPAR) fell by 2.1% to $103.19. In comparison, New York City outperformed the national average, with occupancy rates peaking at 88.8% in June 2025 and an impressive revenue per available room of $295.55, reflecting a 5% increase from the previous year. Additionally, average daily rates in the city rose by 4.6% to reach $332.92.
Nevertheless, the hotel industry in New York City is still recovering from the impacts of the pandemic, with occupancy rates currently below pre-pandemic figures. A significant factor contributing to this decline is the drop in international tourist numbers. In March 2025, the total number of international travelers visiting the U.S. plummeted by 11.6% year-over-year. Specifically, Canadian travelers to New York fell by 19% in the first half of 2025. In response, NYC Tourism + Conventions revised its visitor forecast down by 17% for 2025.
On the positive side, business travel in New York City has partially compensated for the reduction in international leisure travelers. However, the hotel industry remains on alert due to potential challenges ahead. The imminent expiration of the Hotel and Gaming Trades Council agreement in July could lead to increased labor costs for hotels. Additionally, uncertainty regarding the political landscape and its implications on the hospitality market could further impact traveler sentiment.
The outlook for the hotel industry in NYC remains cautious as operators keep a close eye on economic uncertainties and geopolitical tensions. Moreover, Park Hotels & Resorts has projected potential losses for the New York Hilton Midtown due to a decline in overseas guests, with the occupancy rate for this hotel reported at 71% in the first quarter of 2025, down from 75% the year prior.
New York City boasts a total of 135,000 hotel rooms, second only to Las Vegas in the United States. Despite facing challenges, the city’s hotel market demonstrates resilience driven by localized events and a steady influx of business travelers.
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Additional Resources
- Hotel News Resource
- Wikipedia: New York City
- Wall Street Journal
- Google Search: NYC hotel industry
- Crain’s New York
- Google Scholar: NYC tourism
- New York Times
- Encyclopedia Britannica: New York City
- New York Post
- Google News: NYC hotels
Author: STAFF HERE NEW YORK WRITER
The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
