The impact of new policies for hoteliers in New York City
A new wave of laws and social issues is creating a hospitality landscape in New York City that is different from any other major market
The factors include legislation that severely tightens restrictions on short-term rentals, zoning changes that hamper hotel development and a migrant crisis that has taken thousands of rooms off the market. Meanwhile, and perhaps partly because of these factors, the New York City's hotels are doing well.
Key takeaways
- NYC's hotel occupancy is inching toward a full post-pandemic recovery driven by the return of international travel - mainly from Europe, but with some demand trickling in from China - as well as persistent strength in domestic leisure and business travel;
- New York City expects to see strengthening group travel over the coming months. This will likely benefit hotels in the immediate vicinity of Jacob Javits Center as well as those in neighboring submarkets and possibly New Jersey;
- Despite all that, these are historically not the best days for New York hotels. When adjusted for inflation, hotel rate and RevPAR overall are below 2019 levels, and no month in 2023 exceed occupancy levels recorded in the same period of 2019.
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