New York City's hotel industry roared back to life in 2023, achieving an impressive 82.3% average occupancy rate as everything from Manhattan's luxury suites to Brooklyn's vibrant boutiques saw soaring demand.
Key Takeaways
- In 2023, New York City hotels achieved an average occupancy rate of 82.3%, marking a 4.5% increase from 2022
- Manhattan's luxury hotels reported a RevPAR of $512.34 in Q4 2023, up 12% year-over-year
- Brooklyn hotels saw occupancy climb to 76.8% in 2023, driven by leisure demand
- In 2023, NYC hotel total revenue reached $5.8 billion, up 15% from 2022
- Manhattan hotels generated $4.2 billion in revenue in 2023
- NYC luxury hotels contributed $2.1 billion to total revenue in 2023
- NYC has approximately 70,200 hotel rooms across 680 properties as of 2023
- Manhattan accounts for 52,300 rooms or 74.5% of NYC total hotel supply in 2023
- 12 new hotels opened in NYC in 2023 adding 2,100 rooms
- NYC hotel employment totaled 52,400 jobs in 2023, up 8% from 2022
- Front desk staff in NYC hotels averaged $48,200 annual salary in 2023
- Housekeeping jobs comprised 28% of NYC hotel workforce or 14,672 positions 2023
- NYC visitors totaled 62.5 million in 2023, generating 24.8M hotel room nights
- International tourists to NYC 13.5 million in 2023, 52% hotel stay rate
- Domestic leisure visitors 34.2 million drove 60% of hotel demand 2023
New York City's hotel industry thrived in 2023 with strong occupancy and revenue growth.
Employment and Labor
- NYC hotel employment totaled 52,400 jobs in 2023, up 8% from 2022
- Front desk staff in NYC hotels averaged $48,200 annual salary in 2023
- Housekeeping jobs comprised 28% of NYC hotel workforce or 14,672 positions 2023
- Labor turnover rate in NYC hotels 42.1% in 2023
- Manhattan hotels employed 42,100 workers, 80% of city total 2023
- Average hourly wage for NYC hotel servers $22.45 including tips 2023
- 15,200 part-time jobs in NYC hotels during peak seasons 2023
- Diversity: 65% of NYC hotel employees are people of color in 2023
- Management positions 12% of workforce, avg salary $112,000 in NYC 2023
- Brooklyn hotels added 1,800 jobs with new openings 2023
- Unionized workforce 55% in NYC hotels, UNITE HERE Local 100, 2023
- Training programs trained 4,200 new hires for NYC hotels 2023
- Female employees 48% of NYC hotel staff in 2023 survey
- Overtime hours averaged 12% of total payroll in NYC hotels 2023
- Queens hotels employ 3,900 focused on airport shifts 2023
- Benefits coverage 78% of full-time NYC hotel workers 2023
- Job vacancy rate dropped to 6.2% in NYC hotels by end 2023
- Concierge roles avg $55,600 salary in luxury NYC hotels 2023
- Seasonal hiring peaked at 8,500 for summer 2023 in NYC
- Labor cost as % of revenue 34.5% for NYC hotels 2023
- 2,100 new jobs from hotel renovations in 2023 NYC
- Average tenure for NYC hotel GM 4.8 years in 2023
- Multilingual staff 62% in NYC hotels serving global tourists 2023
- NYC hotel industry supported 120,000 indirect jobs in 2023
- Security staff 4,800 positions across NYC hotels 2023
Employment and Labor Interpretation
The soul of New York's hotel industry runs on a vibrant, union-majority workforce that is diversely stitching the city back together post-pandemic, yet it's held together by a startling amount of overtime and turnover, all while management enjoys a tenure shorter than a Broadway intermission.
Occupancy and Performance
- In 2023, New York City hotels achieved an average occupancy rate of 82.3%, marking a 4.5% increase from 2022
- Manhattan's luxury hotels reported a RevPAR of $512.34 in Q4 2023, up 12% year-over-year
- Brooklyn hotels saw occupancy climb to 76.8% in 2023, driven by leisure demand
- NYC Midtown hotels averaged 84.1% occupancy during December 2023 holidays
- Overall NYC ADR rose to $312.45 in 2023, a 8.2% YoY gain
- Times Square hotels hit 89.2% occupancy in summer 2023 peak season
- Queens hotel occupancy reached 72.4% in 2023, boosted by airport traffic
- NYC hotels' RevPAR grew 11.7% to $257.89 in 2023
- Lower Manhattan occupancy averaged 81.5% in Q1 2024
- Independent NYC hotels had 78.9% occupancy vs chain hotels' 83.2% in 2023
- Luxury segment occupancy in NYC was 85.6% for 2023 full year
- Upper East Side hotels reported 79.3% occupancy amid convention traffic
- NYC hotel occupancy dipped to 65.4% in January 2023 but recovered to 88.1% by December
- SoHo hotels achieved 87.2% occupancy in fall 2023
- Average NYC hotel occupancy for events like NYFW was 92.3% in September 2023
- Chelsea neighborhood hotels at 80.1% occupancy in 2023
- NYC RevPAR index vs national average was 145.2 in 2023
- Midscale NYC hotels occupancy 74.5% in 2023
- Holiday Inn Express chain in NYC averaged 82.7% occupancy 2023
- Boutique hotels in Greenwich Village hit 86.4% occupancy Q3 2023
- NYC hotels' group occupancy share was 28.4% of total in 2023
- Extended-stay NYC hotels occupancy 77.9% amid remote work trends 2023
- Harlem hotels occupancy rose 15% to 71.2% in 2023
- NYC airport hotels (JFK/LGA) averaged 79.8% occupancy 2023
- RevPAR for NYC upscale hotels $289.67 in 2023
- Occupancy forecast for NYC 2024 at 83.5%
- February 2023 NYC occupancy 67.8% post-Super Bowl effect
- West Village hotels 84.9% occupancy driven by leisure in 2023
- NYC total hotel room nights sold 22.1 million in 2023
- NYC hotel RevPAR per available room grew 13.2% in Q2 2023
Occupancy and Performance Interpretation
While some neighborhoods have become so popular they're basically playing a game of 'hotel Tetris' with tourists, the overall recovery is clear: New York City's hotels are no longer just surviving but thriving, proving that even in a pricey market, people will still pay a premium to sleep in the city that never does.
Revenue and Financials
- In 2023, NYC hotel total revenue reached $5.8 billion, up 15% from 2022
- Manhattan hotels generated $4.2 billion in revenue in 2023
- NYC luxury hotels contributed $2.1 billion to total revenue in 2023
- Hotel tax revenue for NYC was $682 million in FY2023
- Average profit margin for NYC hotels improved to 28.4% in 2023
- Brooklyn hotel revenue surged 22% to $456 million in 2023
- NYC independent hotels revenue $1.3 billion, chains $4.5B in 2023
- Total departmental revenue per available room (TRevPAR) $312.78 in NYC 2023
- NYC F&B revenue in hotels $890 million in 2023, up 18%
- Midtown hotel EBITDA margin 32.1% in 2023 recovery year
- NYC hotel GOPPAR (Gross Operating Profit per Available Room) $178.45 in 2023
- Queens hotels revenue $289 million from airport proximity 2023
- NYC RevPAR contribution to GDP estimated at $6.2 billion in 2023
- Average daily labor cost per occupied room $112.34 in NYC hotels 2023
- Utility expenses for NYC hotels averaged 7.2% of total revenue in 2023
- Property taxes on NYC hotels totaled $420 million in 2023
- NYC hotel investment sales volume $2.8 billion in 2023
- Average cap rate for NYC hotel transactions 7.8% in 2023
- Debt service coverage ratio for NYC hotels averaged 1.45x in 2023
- NYC boutique hotels revenue per room $245,600 annually 2023
- Group business revenue share 35% of total NYC hotel revenue 2023
- Leisure revenue grew 25% to $1.9B for NYC hotels in 2023
- Business transient revenue $1.7B in NYC hotels 2023
- Ancillary revenue (spa, parking) $456M for NYC hotels 2023
- NYC hotel NOI (Net Operating Income) averaged $45M per property in 2023
- Revenue per square foot in NYC hotel lobbies $89.23 in 2023
- Total NYC hotel payroll expenses $2.1 billion in 2023
Revenue and Financials Interpretation
While Manhattan still wears the crown and luxury hotels gild its edges, Brooklyn's spirited surge and tourists' robust spending reveal a city whose hospitality engine is humming so profitably that even the taxman can afford a smile.
Supply and Inventory
- NYC has approximately 70,200 hotel rooms across 680 properties as of 2023
- Manhattan accounts for 52,300 rooms or 74.5% of NYC total hotel supply in 2023
- 12 new hotels opened in NYC in 2023 adding 2,100 rooms
- Brooklyn hotel room count grew to 8,900 rooms by end of 2023
- Luxury hotels represent 28% of NYC room inventory with 19,656 rooms in 2023
- Under-construction pipeline: 45 hotels with 6,200 rooms planned for NYC by 2025
- Queens has 4,800 hotel rooms, focused near airports, as of 2023
- Independent hotels comprise 22% of NYC supply with 15,444 rooms 2023
- Average age of NYC hotel buildings is 45.2 years in 2023 inventory
- Times Square submarket has 17,200 rooms in 112 hotels 2023
- Boutique hotels total 120 properties with 9,500 rooms in NYC 2023
- Midtown East inventory 12,400 rooms across 85 hotels 2023
- Extended-stay segment has 3,200 rooms in NYC as of 2023
- Room growth rate in outer boroughs 4.1% YoY to 12,900 rooms 2023
- Total branded rooms in NYC 54,756 out of 70,200 in 2023
- Lower Manhattan supply 8,900 rooms post-redevelopment 2023
- Average room size in NYC hotels 320 sq ft in 2023 survey
- 28 hotels underwent renovations adding 1,800 modernized rooms in 2023
- SoHo/West Village combined 5,600 rooms in 45 boutique properties 2023
- Upper West Side 4,200 rooms stable inventory 2023
- Forecast: NYC room supply to reach 78,500 by 2026
- Harlem added 3 new hotels with 450 rooms in 2023
- Airport-adjacent supply 7,200 rooms serving 60M passengers 2023
- Upscale segment 22,000 rooms or 31% of total NYC 2023
- Total meeting space in NYC hotels 1.2 million sq ft in 2023
Supply and Inventory Interpretation
New York City's hotel landscape is a story of relentless evolution, where Manhattan still wears the crown but the outer boroughs are writing their own chapters, luxury and boutique properties are flourishing amidst a sea of renovations, and the entire city is betting big—with thousands of new rooms on the horizon—that the world will keep wanting to visit, meet, and sleep here.
Tourism and Demand Drivers
- NYC visitors totaled 62.5 million in 2023, generating 24.8M hotel room nights
- International tourists to NYC 13.5 million in 2023, 52% hotel stay rate
- Domestic leisure visitors 34.2 million drove 60% of hotel demand 2023
- NYC conventions hosted 145 major events attracting 1.2M attendees 2023
- Broadway shows drew 14.5 million attendees boosting nearby hotel demand 2023
- Airport arrivals 68.4 million passengers fueled transit hotel stays 2023
- Group travel segments filled 32% of NYC hotel rooms in 2023
- Leisure demand RevPAR contribution 45% in shoulder seasons 2023
- Chinese tourists 1.8 million to NYC in 2023, high-end hotel preference
- UK visitors 2.4 million stayed avg 4.2 nights in NYC hotels 2023
- Summer peak saw 2.1M weekly hotel guests in NYC July-Aug 2023
- Business travel recovered to 78% of 2019 levels in NYC 2023
- Events like UNGA generated 150,000 hotel room nights in Sept 2023
- Bleisure travelers 22% of NYC hotel guests in 2023 survey
- Family vacations avg 5.1 nights stay, 28% occupancy share 2023
- Top OTA bookings 55% of NYC hotel reservations in 2023
- Direct bookings via hotel sites 28% amid loyalty programs 2023
- Social media influence drove 18% incremental demand to NYC hotels 2023
- Forecast 65M visitors to NYC in 2024 boosting hotel demand 5%
- Sports events (Yankees/Mets) added 450K hotel nights 2023 season
- Cultural attractions (Met/MoMA) 45M visits correlated to 12M stays 2023
Tourism and Demand Drivers Interpretation
New York City’s hotel industry thrives on a relentless symphony of global curiosity, hometown leisure, and the magnetic pull of Broadway marquees, sports stadiums, and museum halls, all orchestrated to keep nearly every bed filled from a jet-lagged tourist to a bleisure traveler extending their stay.
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