Closed Hotels New York City

New York City's Hotel Shortage Continues

Despite a slight uptick in hotel openings, the city is still facing a severe shortage of hotel rooms.

In 2019, there were roughly 123,000 hotel rooms in New York City. Since COVID, about 200 of the city's hotels have closed, leaving just over 100,000 rooms available.

This shortage has been exacerbated by the city's strong tourism industry. In 2022, New York City welcomed a record 66.6 million visitors. This number is expected to grow in the coming years, as the city continues to attract tourists from around the world.

The shortage of hotel rooms has led to higher prices and lower availability. According to a recent study by STR, the average daily rate for a hotel room in New York City is now $275, up 25% from 2019. And occupancy rates are at 90%, meaning that it is often difficult to find a room on short notice.

The hotel shortage is also having a negative impact on the city's economy. The hotel industry is a major employer in New York City, and the shortage of rooms is costing the city jobs and tax revenue. In addition, the shortage is making it more difficult for businesses to attract and retain employees who need to travel to New York City for work.

The city is taking steps to address the hotel shortage. In 2022, the city council passed a zoning amendment that will allow for the construction of more hotels in certain areas of the city. The city is also working with developers to encourage the construction of new hotels and the renovation of existing hotels.

Despite these efforts, it is likely that the hotel shortage will continue for the foreseeable future. The city's tourism industry is strong, and there is a limited amount of land available for new hotel development. As a result, hotel prices are likely to continue to rise and availability is likely to remain low.

*Conclusion*

The hotel shortage in New York City is a serious problem that is having a negative impact on the city's economy and tourism industry. The city is taking steps to address the shortage, but it is likely that it will continue for the foreseeable future. Visitors to New York City should be prepared for higher prices and lower availability when booking their hotel accommodations.