New York City's hotel sector is one of the strongest in the country, yet it has not yet regained its pre-pandemic occupancy and revenue figures. This is according to the latest study by New York City Comptroller Thomas DiNapoli. Although the number of domestic visitors has risen sharply, international guest numbers remain below pre-pandemic levels. This contributes to lower occupancy, employment, and room rates compared to the years before 2020.
In the report published this week, DiNapoli noted that the city's hotel industry has largely recovered from the pandemic. It is performing well, but could be doing even better if international visitors returned more quickly. Despite the challenges, further growth in the sector is expected, but a full recovery requires the return of international guests and an increase in employment to meet demand.
Of the 65 million visitors New York City recorded in 2025, 52.4 million were domestic tourists. International visitors accounted for only 12.5 million, representing a decline from 2024 and approximately 93 percent of pre-pandemic figures. Although the city's hotel occupancy rate, at 84 percent, was the highest in the country for the third consecutive year, this figure was still 3.5 percent below the 2019 level. Furthermore, the average daily room rate of $333.71 remained below the inflation-adjusted pre-pandemic average.
Particularly concerning is that the New York hotel industry currently employs 45,325 people, which is 13 percent fewer than in 2019. Vijay Dandapani, President and CEO of the Hotel Association of New York City, an industry association representing 250 city hotels, commented that the Comptroller's report confirms what the hotel industry has been saying for years: they have not yet recovered from the pandemic and are still thousands of jobs and millions of visitors short of previous levels.
However, there are also positive developments. The number of hotel rooms in New York City increased by approximately 17 percent between 2014 and 2024, surpassing national growth by more than 3 percent. The 4,852 new hotel rooms in the city in 2026 will also represent the highest number of new constructions nationwide for the second consecutive year. Between 2026 and 2028, 24 new hotel projects with 5,778 rooms are expected to open in New York City.
Rich Maroko, President of the Hotel & Gaming Trades Council, the union representing 27,000 hotel employees, stated that workers would be supported by well-paid jobs once new construction is complete and international travel continues to improve. Hotels welcome millions of visitors, generate billions in tax revenue, and support the highest wages for workers nationwide. The city-wide average salary for hotel employees reached $86,588 in 2025, an increase of 25 percent from $69,371 in 2019, according to DiNapoli.
Furthermore, long-awaited job stability is expected. In May, the Hotel & Gaming Trades Council reached an eight-year agreement with the Hotel Association of New York City owner group, which is expected to increase employee benefits and wages by 50 percent. Approximately 81 percent of hotel employees live in the five boroughs, with half originating from Brooklyn and Queens.
