NYC hotel rooms are pricier than ever — even budget-friendly hotels are out of reach for many tourists

Key Points:

• New York City hotel rates have reached record highs ahead of the holidays, with luxury rooms like the Four Seasons junior suite costing nearly $3,000 per night, while budget hotels such as Holiday Inn Express are charging upwards of $400-$500 per night.
• Despite soaring prices, hotel operators cite ongoing inflationary pressures from regulatory costs, utilities, taxes, and labor expenses, alongside tourism levels still below 2019, as challenges limiting profitability.
• Luxury hotels have seen the sharpest price increases, with average rates jumping 70% since 2019, driven by affluent domestic travelers aged 30-50, while budget hotels have risen more moderately by 23%, though affordability concerns persist.
• The crackdown on short-term rentals and a rebound in tourism have boosted hotel demand, with NYC expecting over 65 million visitors in 2026, and new hotel developments primarily focused on luxury properties due to stricter building regulations.
• Despite high rates, the hotel industry anticipates continued growth in 2027, supported by major upcoming events and ongoing strong demand, with New York City leading the nation in hotel occupancy, room rates, and revenue per available room.