New York Hospitality Market Report

Manhattan stays resilient as outer boroughs navigate supply surge. After ranking among the top five U.S. markets for RevPAR and occupancy growth last year, New York City faces supply pressures in 2025 that may curtail momentum in select submarkets. The Times Square corridor is still expected to see local occupancy climb by over 250 basis points this year. Deliveries here will remain below the most recent peak in 2022, while tourism activity should drive bookings, even if visitation growth moderates. Record office absorption in 2024 will also fuel business and group meeting demand. In contrast, elevated new supply in the outer boroughs will weigh on local hotel performance. More than 1,000 rooms will open in 2025 across the West Brooklyn-Queens area, as well as around La Guardia Airport, nearing record highs. The possible phase-out of hotels used for migrant shelters may further strain occupancy in these areas. Still, airport traffic near pre-pandmeic levels and growing demand for affordable lodging should help stabilize bookings.