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NYC hotel industry remains below 2019 occupancy and revenue benchmarks
A New York State Comptroller study found occupancy is 3.5% under 2019, with average daily room rates still below their pre-pandemic, inflation-adjusted level.
New York City hotels have largely recovered from the pandemic, but a new study from New York State Comptroller Thomas DiNapoli says the sector has not fully returned to its pre-pandemic occupancy and revenue levels. Housing demand is described as relatively strong, but the report links the gap to slower international visitor recovery and ongoing employment shortfalls, according to Commercial Observer.
DiNapoli’s analysis, released this week, says NYC hosted 65 million visitors in 2025, including 52.4 million domestic tourists and 12.5 million international visitors. The international total was down from 2024 and remains roughly 93% of pre-pandemic levels, contributing to weaker pre-pandemic occupancy, employment, and room rates, Commercial Observer reported.
The report also points to hotel performance metrics, including an 84% hotel occupancy rate, the highest in the nation for a third consecutive year, while still 3.5% below its 2019 figure. It adds that the average daily room rate of $333.71 remains below its pre-pandemic benchmark adjusted for inflation.
DiNapoli said a complete recovery depends on international visitor returns and employment growth to keep pace with demand. The Hotel Association of New York City, led by Vijay Dandapani, said the city is still below pre-pandemic levels for both jobs and visitors, while also noting hotel room supply is set to expand, including 4,852 new rooms in 2026 and 24 new projects between 2026 and 2028, Commercial Observer reported.