Tailwinds Are Expected To Boost New York City Hotel Investment Volume

New York City hotel trades in the first quarter increased sharply from a year ago and surpassed 2019 results as well. Multiple factors make New York City hotel assets attractive, among them the lack of new supply after the rooms currently in construction open, the ban on short-term rentals, and a number of rooms taken out of inventory to house unhoused people and migrants. While these three influences are expected to allow hoteliers to exert pricing power eventually, margins will likely be under pressure when the labor union contracts are renegotiated in 2026.