Demand for NYC Hotels Leads U.S., But International Visitors Still Lagging and Employment Remains Below Pre-Pandemic Levels
New York City’s hotel industry is one of the nation’s strongest, with high demand for rooms led by a surge in domestic visitors, but it remains vulnerable to changes in tourism and the continued loss of international travelers due to geopolitical instability, according to a new report by State Comptroller Thomas P. DiNapoli.
“The city’s hotel industry has largely recovered from the pandemic. It is doing well, but it could be doing even better if international visitors returned more quickly,” DiNapoli said. “Federal policies on trade and immigration, and other domestic and global geopolitical issues, are keeping some tourists away. Despite the challenges, we expect the sector to continue to grow, but a complete recovery requires a return of international visitors and increased employment to keep up with demand.”
“This report from State Comptroller DiNapoli underscores the critical role New York City's hotel industry plays in our economy, and how its recovery post-pandemic continues to set a gold standard for businesses and workers alike,” said Rich Maroko, President of the Hotel & Gaming Trades Council. “Our hotels welcome millions of visitors, generate billions in tax revenue, and support the highest salaries nationwide for workers. With tourism continuing to grow and more new hotels on the horizon than anywhere else in the country, we look forward to building on this momentum by creating more good paying jobs and ensuring the industry's continued success benefits the workers who make it possible."
“The Comptroller’s report confirms what the hotel industry has been saying for years: we have yet to recover from the pandemic, and we are still thousands of jobs and millions of visitors below where we were,” said Vijay Dandapani, President & CEO of the Hotel Association of New York City. “As an industry we are also paying our employees the highest wages in the country and contributing more than ever to the tax base, but our operating margins are much thinner, putting hotels at risk of closure—and putting more jobs at risk as well."
New York City welcomed 65 million visitors in 2025. The vast majority, 52.4 million or 81%, were domestic travelers, which was close to full recovery of pre-pandemic numbers. International visitors (12.5 million) in 2025 were at 92.6% of their pre-pandemic numbers, however, and actually down from 2024. Business travel to the city has also recovered less quickly and was at 92.6% of its 2019 level.
Among the boroughs, The Bronx saw the greatest percentage increase in hotels (67.7%) going from 31 in 2019 to 52 in 2025. Brooklyn was second, having added 32 hotels over the period to reach 147, an increase of 27.8%. Queens added 37 new hotels, a 23.1% increase.
The average hotel employee salary, citywide, was $86,588 in 2025, up 24.8% from $69,371 in 2019. The citywide average wage is nearly double the national average of $45,681, but wages in city hotels vary widely by borough. Manhattan hotels paid an average salary of $91,879 last year, significantly more than Queens ($63,370), Brooklyn ($60,259), The Bronx ($37,932), or Staten Island ($31,942).
In May, the Hotel & Gaming Trades Council, AFL-CIO, the union representing 27,000 hotel workers in the city, reached an eight-year contract with the Hotel Association of New York City, which represents close to 250 hotels, that includes increased benefits and 50% wage increase over the life of the contract.
Other findings from DiNapoli’s report:
- NYC hotels’ occupancy rate was 84.1% in 2025, the highest in the nation for the third consecutive year, but still below the 87.5% occupancy rate in 2019.
- $333.71 was the average room rate 2025, up 4.7% from 2024 and 17.1% more than a room cost 2019, but lower than the pre-pandemic rate when adjusted for inflation.
- 80.9% of hotel workers live in the city, with 46% in Brooklyn and Queens.
- 63% of hotel workers were born outside the U.S., the largest share of foreign-born workers in any city industry, with construction second at 60%.
- Room attendants account for the largest occupation in the city’s hotel industry with 29.2% of the workforce and an average salary of $49,887.
- City visitors spent $55.6 billion in 2025, with hotels accounting for $13.9 billion (around 25%) of their spending, up from $11.9 billion in 2019.
- The city collected $2.4 billion in tax revenue from the industry, including $770 million from the hotel occupancy tax, in Fiscal Year 2025.
Welcome Back to New York: An Analysis of Post-Pandemic Travel (July 2024)
The Tourism Industry in New York City (April 2021)
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