New York City Hotels Are Still Struggling to Regain Pre-Pandemic Numbers

The New York City hotels and hospitality sector is among the strongest in the nation, but it still hasn’t recovered to meet its pre-pandemic occupancy and revenue metrics. 

This is the conclusion drawn by New York State Comptroller Thomas DiNapoli in his annual study of New York City’s hotel industry, which found that while domestic visitors have surged, international visitors remain lower than their pre-pandemic benchmarks, contributing to lower pre-pandemic occupancy, employment and room rates. 

“The city’s hotel industry has largely recovered from the pandemic. It is doing well, but it could be doing even better if international visitors returned more quickly,” DiNapoli said in the report released this week. “Despite the challenges, we expect the sector to continue to grow, but a complete recovery requires a return of international visitors and increased employment to keep up with demand.”

Of the 65 million visitors New York City hosted in 2025, 52.4 million were domestic tourists, while international visitors only accounted for 12.5 million, which was down from 2024 and roughly 93 percent of its pre-pandemic numbers, according to DiNapoli. 

Moreover, while the city’s 84 percent hotel occupancy rate was the highest in the nation for the third straight year, the city’s occupancy metric remained 3.5 percent below its 2019 number. 

Furthermore, the $333.71 average daily room rate remained lower than its pre-pandemic average adjusted for inflation. 

Perhaps most concerning, the New York City hotel industry today employs 45,325 men and women, which is 13 percent fewer than it employed in 2019. 

“The comptroller’s report confirms what the hotel industry has been saying for years: We have yet to recover from the pandemic, and we are still thousands of jobs and millions of visitors below where we were,” said Vijay Dandapani, president and CEO of the Hotel Association of New York City, a trade group that represents 250 city hotels. 

That said, it’s not all doom and gloom. 

The number of New York City hotel rooms actually increased by roughly 17 percent between 2014 and 2024, outpacing national growth by more than 3 percent, and the city’s 4,852 new hotel rooms in 2026 will lead the nation in new construction for the second straight year. 

Between 2026 and 2028, New York City will debut 24 new hotel projects with 5,778 rooms. 

“New York City’s hotel industry is one of the nation’s strongest, with high demand for rooms led by a surge in domestic visitors,” wrote DiNapoli. 

Rich Maroko, president of the Hotel & Gaming Trades Council, the union which represents 27,000 hotel workers, said in a statement that industry workers will be supported by “good-paying jobs” as new construction wraps up and international travel continues to improve.  

“Our hotels welcome millions of visitors, generate billions in tax revenue, and support the highest salaries nationwide for workers,” Maroko said.  

The average citywide salary for hotel workers reached $86,588 in 2025, up 25 percent from the $69,371 workers made in 2019, according to DiNapoli. Roughly 81 percent of hotel workers live in the five boroughs, with half coming from Brooklyn and Queens. 

There’s also the expectation of long-awaited labor stability on the horizon. In May, the Hotel & Gaming Trades Council reached an eight-year contract with ownership group the Hotel Association of New York City to increase workers’ benefits and wages by 50 percent. 

Brian Pascus can be reached at bpascus@commercialobserver.com.