New York City hotel rates are hitting all-time highs ahead of the holidays \u2014 with luxury rooms at unprecedented levels and supposedly budget-friendly hotels increasingly out of reach for many tourists, The Post has learned.<\/p>\n
The biggest hikes are happening at the poshest properties. At the recently renovated Four Seasons<\/a> on East 57th Street, visitors on Thanksgiving can expect to pay $2,912 a night including taxes and fees for a 500-square-foot junior suite, according to the swanky venue\u2019s site.<\/p>\n But sticker shock has been arguably greater at lower-tier venues. Last week, the Holiday Inn Express in Chelsea was advertising same-day booking for a standard room at a punishing $435 a night. Its site was asking $545 to book the same room on Thanksgiving, adding, \u2018Well done! You\u2019re getting a great price,\u201d on a checkout page. <\/p>\n \u201cWe were surprised by just how expensive the nearby hotel options were,\u201d said Lisa Hawkins, a spokesperson for the Washington, DC-based Distilled Spirits Council of the US who had to book rooms in Manhattan for a event the trade group hosted last week in SoHo.<\/p>\n Luxury hotels like the Four Seasons Hotel on E. 57th St. are commanding sky-high room rates and still booking healthy occupancy rates. Getty Images for Zero Halliburton<\/p>\n The Holiday Inn Express in Chelsea praises customers on its online checkout page for getting a \u201cgreat price.\u201d Google St. View<\/p>\n \u201cEven the more value-oriented hotels were around $550 a night, while some options exceeded $1,000,\u201d Hawkins added. Ultimately, the trade group opted for a \u201cbudget-friendly\u201d property near its event \u201cgiven that we needed multiple rooms,\u201d she said.<\/p>\n After hitting rock-bottom in the depths of the pandemic, New York City hotels have come roaring back this year. In September, nightly room rates in the Big Apple hit a record monthly average of $468.54 \u2014 exactly 96 cents above the previous all-time monthly average set last December, according to CoStar Group, a firm that tracks hotel data.<\/p>\n Despite record room rates, hoteliers claim they remain victims of relentless inflation \u2013 fueled by regulatory hurdles<\/a>, utility costs, real estate taxes and the highest labor costs in the country<\/a> <\/a>\u2013 that continues to eat into profits.<\/p>\n \u201cThe hotel industry continues to face headwinds<\/a> \u2014 not least because tourism is still below 2019 numbers,\u201d said Vijay Dandapani, chief executive of the Hotel Association of New York City.<\/p>\n The trade group estimates that room rates will increase between 3% and 4% next year, roughly on pace with inflation. But citywide, this September\u2019s average room rate is 7% above last year\u2019s. <\/p>\n Vijay Dandapani, chief executive of the Hotel Association of New York City. Getty Images for Hotel Association of New York City (HANYC)<\/p>\n At this clip, \u201cWe could break another record in October,\u201d said Didio Pequeno, director of hospitality analytics at CoStar Group. \u201cThere doesn\u2019t seem to be a rate ceiling in New York City today.\u201d<\/p>\n A city crackdown on short-term rentals from Airbnb and other booking services in 2023, known as Local Law 18<\/a>, boosted hotels that were already enjoying a rebound in tourism that started in 2024, industry experts say.<\/p>\n The city\u2019s tourism bureau \u2013 NYC Tourism + Conventions \u2013 expects more than 65 million visitors to come to the city in 2026 compared with more than 66 million in 2019. <\/p>\n Much of the recent business is being fueled by a surge in well-heeled domestic travelers, hoteliers say. The average nightly room rate for luxury hotels citywide shot up to $841 in September \u2014 a staggering 70% increase over $494 in September 2019. <\/p>\n \u201cIf you are in the luxury market, things are fantastic,\u201d Dandapani said. \u201cWe are hearing that it\u2019s a relatively new demographic\u201d filling up the most expensive rooms.<\/p>\n The hotel boom in NYC is being fueled by wealthy Americans from other parts of the country. Bloomberg via Getty Images<\/p>\n The St. Regis is among the priciest hotels in New York City. Penske Media via Getty Images<\/p>\n \u201cIt\u2019s generally wealthy Americans from other parts of the country who are 50 years-old or younger in their 30s, people who didn\u2019t stay in the top hotels.\u201d<\/p>\n A room at the Mandarin Oriental on Thanksgiving will cost $2,867 for a standard king-size bed with a view of the Hudson River. At the Baccarat Hotel in Midtown, a \u201cclassic king\u201d runs $2,238 a night.<\/p>\n For lower-tier venues, price increases haven\u2019t been as dramatic on a percentage basis. The average nightly rate for budget hotels in the city in September was $203 \u2014 up 23% from $164 in September 2019. Still, executives fret that higher room rates \u2014 especially in Manhattan \u2014 threaten to shut out an entire segment of tourists. <\/p>\n The Hilton Garden Inn on East 52nd Street had one room available at $523 on Thanksgiving as of Oct. 29, with the rest of its offerings priced at $750 and up \u2014 as high as $1,239 a night for a room with two double beds.<\/p>\n \u201cWe are attracting fewer budget conscious travelers,\u201d Dandapani admits. \u201cThey don\u2019t have the disposable income and we don\u2019t have budget accommodations.\u201d<\/p>\n Part of the problem is that many lower-cost hotels in the city were converted to migrant shelters<\/a> during the past few years. Looking ahead, 79% of new hotel development will produce luxury properties, according to CoStar.<\/p>\n Demand for luxury hotels like the Baccarat has surged this year. Getty Images for Ines Di Santo<\/p>\n