NYC Hotel Prices Hit Record Highs This Holiday Season

Are you planning a holiday trip to the Big Apple? Be prepared for sticker shock! Hotel rates in New York City have skyrocketed to record highs, with an average of $417 per night in September, according to CoStar, a real estate analytics firm. This makes NYC the second most expensive place to stay, second only to Maui.

Luxury Hotels: Expect to Pay Big Bucks

Luxury hotels are even more expensive. A king-size room at the St. Regis New York in November will cost you over $1,800 a night! Mid-tier hotels have seen a more than 50 percent increase in nightly rates since fall 2020.

Why the Price Hike?

Several factors contribute to this surge:

• Post-COVID Demand: Increased travel after the pandemic.
• Hotel Use as Shelters: Hotels being used to house migrants.
• Airbnb Crackdown: The city's efforts to curb short-term rentals.

This has left some potential visitors scrambling for alternatives, considering cheaper options in New Jersey or postponing their trips.

High Occupancy Rates Despite High Prices

Despite the high prices, hotels are filling up fast! 91 percent of NYC hotel rooms were booked in September, similar to pre-pandemic levels. Experts predict 65 million visitors by the end of 2024 and possibly 68 million in 2025.

What This Means For You

If you're planning a trip to NYC, start budgeting now! Consider alternative accommodations or travel during the off-season to save money. Otherwise, be prepared to pay a premium for your stay in the city that never sleeps.