New York City Hotel Market 2026

New York City’s hotel market in 2026: among the Top 25 U.S. markets in 2025, the city saw the highest absolute occupancy, ADR and RevPAR, while Manhattan’s first-half 2026 story was rate-led growth against softer occupancy. This page tracks CoStar/STR and NYC Tourism performance, inventory and the construction pipeline under the M1 special-permit rule, Local Law 104 (Safe Hotels Act) and Local Law 18, notable 2025–2026 sales with price per key, CMBS distress, and demand drivers from international inbound, the FIFA World Cup final at MetLife Stadium, Javits conventions and Broadway.

Last updated: October 30, 2026 · Refresh as new CoStar, NYC Tourism + Conventions, OSC and transaction disclosures land. Byline: Nathan Snyder, Editor.

2026 performance at a glance

In 2025, CoStar put New York City at 84.1% occupancy (−0.2%), $333.71 ADR (+4.7%) and $280.71 RevPAR (+4.5%) — the highest absolute occupancy, ADR and RevPAR among the Top 25 U.S. markets, and the third consecutive year NYC led on occupancy. U.S. RevPAR fell 0.3% that year (CoStar, Jan. 20, 2026). NYC Tourism + Conventions, publishing the same season on March 24, 2026, rounded occupancy to 84.2%, ADR to $334, room nights sold to 38.1 million (+2%) and inventory to about 124,000 rooms, with six openings and 992 rooms in 2025 — cite those separately; do not blend unlabeled with CoStar’s three decimals.

Manhattan’s first half of 2026 was rate-led. PwC’s Manhattan Lodging Index (CoStar as of July 1, 2026) put YTD occupancy at 80.7% (−1.7%), ADR at $336.90 (+6.3%) and RevPAR at $271.77 (+4.5%). June alone ran 86.2% occupancy, $423.17 ADR (+16.3%) and $364.85 RevPAR (+13.2%). Five-borough absolute occupancy/ADR/RevPAR for full 2026 year-to-date are not publicly available in the free CoStar releases reviewed for this page beyond the monthly Top 25 namings below.

July 2026 — the FIFA World Cup final month — CoStar named New York City for the largest Top 25 gains in ADR and RevPAR: ADR $351.18 (+24.0%) and RevPAR $305.74 (+27.1%). Absolute occupancy for that month was not published in the Top 25 naming reviewed (CoStar July 2026). PwC later noted the tournament “delivered less-than-expected demand for hotels,” with match days boosting bars and restaurants more than lodging.

August 2026 reversed the rate spike: CoStar named New York City for the largest Top 25 ADR decline, to $275.07 (−3.3% YoY). Absolute occupancy and RevPAR for that month were not published in the Top 25 naming reviewed (CoStar August 2026).

The week ending Sept. 12, 2026, CoStar (via Lodging Magazine) put New York City at 91.8% occupancy (+4.1 percentage points), $435.43 ADR (+7.1%) and $399.60 RevPAR (+11.5%) (Lodging Magazine / CoStar).

Supply and pipeline

Average monthly active hotel rooms in 2025 were about 124,000, up from 121,700 in 2024 (+1.9%), across 1,003 establishments including 597 in Manhattan (NYS OSC Report 6-2027, citing NYC Tourism / CoStar). That is still below the pre-pandemic peak of more than 127,000 rooms in January 2020.

NYC Tourism “active development through 2028” (5,778 / 24) and Lodging Econometrics “under construction” (5,689 / 29) are different definitions — label the source on every pipeline figure; do not average them. Context: about 15,777 rooms were under construction in 2020 (OSC citing Cushman & Wakefield).

New hotels in M1 light-manufacturing districts still need a City Planning Commission special permit under the M1 Hotel Text Amendment (N 180349 ZRY, adopted December 2018; Zoning Resolution §§42-152 / 74-153). Industry and city reporting treat the permit as a high barrier that slowed as-of-right M1 hotel building; OSC notes the active pipeline is far below the 2020 construction peak. No official single figure quantifies how much of the slowdown is the 2018 rule versus pandemic, financing costs and shelter use.

Regulation: Local Law 104 and Local Law 18

Safe Hotels Act = Local Law 104 of 2024

Local Law 104 of 2024 (Int. 0991), enacted Nov. 4, 2024 and effective May 3, 2025 (with a short enforcement stay through May 17, 2025), is New York City’s hotel licensing law. It is not “Local Law 99.” Hotels need a DCWP license (2-year term, $350 fee; licenses expire Sept. 30 of even-numbered years, with the first standard expiry Sept. 30, 2026), continuous front-desk coverage, daily cleaning unless a guest declines, panic buttons for core employees entering occupied rooms, trafficking training, and — for hotels with 100 or more rooms — direct employment of core staff (housekeeping, front desk, front service), with phase-in rules for older contractor agreements through Dec. 1, 2026. Hotels with more than 400 rooms need continuous on-premises security while any guest room is occupied. OSC notes the subcontracting limits will likely affect nonunion hotels, which make up about 74% of City hotels.

Industry reaction split: AHLA and AAHOA condemned or expressed deep disappointment at passage; HANYC dropped opposition after small-hotel exemptions and said the passed bill creates a fair standard; the Hotel and Gaming Trades Council called it a major victory. Attribute each view to the named source.

Local Law 18 (short-term rentals)

Local Law 18 of 2022, enforced from Sept. 5, 2023, requires short-term rental hosts to register with the Mayor’s Office of Special Enforcement and bars platforms from processing unverified stays under 30 days. Peer-reviewed research (Anastasi et al., 2025) estimates NYC hotel ADR rose about $14 to $19 per night and hotel revenue about $2.1–$2.9 billion over the first 18 months, with little precise gain in room nights — attribute those figures to the study, not to the City.

Notable 2025–2026 NYC hotel sales

Price per key only where both price and keys were publicly attributed. From the Hotelier Times Transaction Tracker and the sources linked below.

Other H1 2026 Manhattan prints in PwC’s table include INNSiDE NoMad at $203M / 313 keys (~$648,562 a key), NoMo Soho $125M / 264, and Chambers $66.5M / 77. The Fifth Avenue Hotel / 250 Fifth February 2025 Columbia Pacific stake (reported $76.4M for a 67% interest; Empire retained a share) is omitted — not a clean whole-hotel sale. LoopNet / CityFeet asking prices and Wikipedia-sourced distress figures are omitted.

CMBS distress

• New York Hospitality Portfolio — seven NYC hotels, 1,087 keys, $275M CMBS: matured November 2024, flipped to nonperforming matured balloon, and was a major driver of the February 2025 lodging delinquency rise. Special-servicer commentary then described it as under contract for sale or refinance, with a 90-day forbearance through May 9, 2025 (TreppTalk, Mar. 21, 2025). Resolution status after that forbearance window is not confirmed in free sources reviewed for this page.
• Hilton Garden Inn Midtown (233-239 W. 54th St, 401 keys) — re-entered special servicing ahead of a March 2025 maturity on a $175M CMBS stack plus $25M mezz (Commercial Observer, Feb. 19, 2025). Post-maturity 2026 status is not confirmed here.
• Sector context: Trepp’s September 2026 lodging CMBS delinquency rate was 6.18% (workspace market researcher note). Do not invent an October 2026 print.

What’s driving New York City

• National-leading rates on a constrained supply base. CoStar’s 2025 trio and the M1 special-permit barrier keep pricing power high even when occupancy slips a point.
• World Cup final at MetLife Stadium. Eight matches including the Final on Sunday, July 19, 2026, at 3:00 p.m. ET (NYNJ Host Committee). NYC Tourism’s pre-event regional forecast: 1.2 million visitors and $3.3 billion economic impact. July CoStar ADR/RevPAR spiked; PwC said lodging demand was softer than hoped.
• International inbound still soft in spots. NYC Tourism: 12.5 million international visitors in 2025 (−3.1%), with Canada down about 19% YoY; 2026 forecast 12.9 million. Total visitors 65.0 million in 2025; 66.3 million forecast for 2026.
• Javits and Broadway. Javits estimates convention bookings generated more than 100,000 NYC-region hotel stays in 2025. Broadway’s 2025–26 season grossed $1.9109 billion on 14.6 million attendees (Broadway League).
• Policy overlays. Local Law 104 (licensing / direct employment) and Local Law 18 (short-term rental registration) sit alongside the wind-down of migrant-shelter hotel contracts. Exact citywide counts of hotels still under migrant-only contracts on any given 2026 date are not published cleanly in the sources reviewed — HANYC’s Vijay Dandapani estimated in February 2025 that 65%–75% of roughly 16,000 historically shelter-available rooms would return to the guest market (Bisnow); treat that as a named industry estimate, not a City forecast.
• Named outlooks. Tourism Economics / CoStar via OSC (as of June 2026): 2026 NYC RevPAR +4.8%. PwC: rate management remains central; subdued international travel is a near-term risk; office recovery supports midweek demand.

Sources

• CoStar, U.S. hotels 2025 full-year (Jan. 20, 2026)
• CoStar, U.S. hotel performance July 2026
• CoStar, U.S. hotel performance August 2026
• NYC Tourism + Conventions, 2025 Annual Report release (Mar. 24, 2026)
• NYS OSC, The Hotel Industry in New York City, Report 6-2027 (Oct. 2026)
• PwC Manhattan Lodging Index
• Lodging Econometrics Q4 2025 construction release
• NYC Council Legistar Int. 0991 / Local Law 104
• DCWP hotel licensing law FAQ
• OSE Local Law 18 registration
• NYNJ Host Committee World Cup schedule
• Broadway League 2025–26 season stats
• Commercial Observer, Dominick $175M
• Commercial Observer, Magna portfolio
• Gencom, InterContinental Times Square PR
• Commercial Observer, Ritz-Carlton Central Park $269.7M records
• The Real Deal, Edition Clocktower / Dominick trades
• TreppTalk, Feb. 2025 CMBS changes

What’s next for NYC hotels

• Hotel licensing keeps reshaping labor costs. Local Law 104 of 2024 (the Safe Hotels Act, Int. 0991) took effect May 3, 2025 and requires DCWP licensing, panic buttons for core staff entering occupied rooms, and — for hotels with 100 or more rooms — direct employment of core housekeeping, front-desk and front-service roles, with older contractor agreements phasing in through Dec. 1, 2026 (NYC Council Legistar; DCWP FAQ). The NYS OSC notes the direct-employment rules will likely affect nonunion hotels, which make up 74% of City hotels (OSC Report 6-2027).
• Short-term rental registration still supports hotel pricing power. Local Law 18 of 2022, enforced since Sept. 5, 2023, requires hosts to register with the Mayor’s Office of Special Enforcement and bars platforms from processing unregistered stays under 30 days (OSE). Peer-reviewed research estimates NYC hotel ADR rose about $14–$19 over the first 18 months after enforcement — attribute that effect to Anastasi et al., not to the City (study PDF).
• World Cup final demand already showed up in July rates. MetLife Stadium (New York/New Jersey Host City) hosted eight FIFA World Cup 2026 matches, including the Final on Sunday, July 19, 2026 (NYNJ Host Committee). CoStar reported NYC ADR of $351.18 (+24.0% YoY) and RevPAR of $305.74 (+27.1%) in July 2026, naming the final-host market for the largest Top 25 gains that month (CoStar). Analysis: PwC later wrote the tournament delivered less-than-expected lodging demand overall, with match days boosting bars and restaurants more than hotels (PwC Manhattan Lodging Index).
• Landmark luxury supply exits for years as The Plaza closes. Fairmont/Katara announced The Plaza will close “for at least four years commencing January 2027” for landmark façade restoration, taking 282 guest rooms offline (BusinessWire; room count via NBC New York). A last day of service of Jan. 19, 2027 is reported by Town & Country — attribute that date to Town & Country; Fairmont’s primary release says only “commencing January 2027.”
• A mega lifestyle tower resets Midtown West supply in 2028.
• A mega lifestyle tower resets Midtown West supply in 2028. Hyatt and Extell’s Times Square project (The Torch / StandardX program) carries conflicting published key counts: PwC’s H1 2026 Manhattan tables (as of July 1, 2026) listed Extell’s The Torch at 825 keys for Q2 2028, while later 2026 coverage (Hyatt Newsroom / TRD / Commercial Observer) describes an expanded ~1,800-key StandardX program at 255 West 45th / 740 Eighth, with an enclosed free-fall ride and an observation deck more than 1,000 feet up, anticipated in the second half of 2028 (Hyatt Newsroom; PwC). Either figure would be a large addition relative to NYC Tourism’s citywide pipeline of 24 projects / 5,778 rooms in active development through 2028 (NYC Tourism; OSC).
• AI booking agents are arriving; commercial terms for hotels remain undisclosed. Agoda is live as a connector inside Meta’s Muse AI agent in Singapore and Japan for destination discovery, hotel booking and itinerary management (Agoda / PR Newswire). Separately, Cloudbeds announced a Muse API path that records bookings in the hotel’s own engine as direct bookings, with a U.S. rollout planned for Q1 2027 (Cloudbeds). Analysis: Meta has said it expects commerce fees “paid for by businesses,” but no travel take-rate has been disclosed — owners should treat any “second cut” narrative as an open question, not a confirmed fee schedule (Meta Q3 2026 earnings call transcript).

Future section sources: NYC Council Legistar Int. 0991 / Local Law 104 · DCWP hotel licensing FAQ · NYS OSC Report 6-2027 · OSE Local Law 18 · Anastasi et al. STR study · NYNJ Host Committee World Cup schedule · CoStar July 2026 hotel performance · PwC Manhattan Lodging Index …

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