New York Hospitality Market Report

Ongoing construction extends occupancy recovery timeline. New York tourism is projected to continually improve this year. An expected 56.4 million people are projected to visit the five boroughs by the end of 2022, an increase of roughly 23.5 million over the prior year. While a return to pre-pandemic levels of tourism is not expected until at least 2024, the average daily rate will overtake the February 2020 equivalent by the end of 2022. Rapid development, however, could extend the time required for a full occupancy recovery. As of July, the construction schedule is set to expand supply by more than 11.5 percent, the highest growth nationwide by both the measure of keys underway and rate of inventory additions. However, recently-passed legislation requiring special permits for hospitality projects has translated to an observable slowdown in construction starts over the past year.