New York City Hotel Occupancyโ Falls as U.S. Hotel Industry โFaces record decline in 2025
Newโฃ York City is experiencing a downturn in its hotel sector, mirroringโ a nationwide trend that saw โrecord dropsโ in occupancy across the U.S. โin 2025. The city recorded โa 0.5% decline in hotel occupancy, joining Texas, Louisiana, California,โค Nevada, โMassachusetts, and Florida in a significant decrease in hotel bookings.
The broader U.S. hotel industry is grappling with economic uncertainty, reduced internationalโค travel, and fewer large-scale events – factors contributing to the widespread decline. The ongoing U.S.โ government shutdown has exacerbated โขthese challenges, resulting in an estimated $650 โฃmillion โคloss in hotel business and โa daily economic impact of $31 million in lost hotel activity.More than 30 โฃindustry associations are urging Congress to โคswiftly resolve the shutdown.
Hotelโค leaders emphasize the shutdown’s devastating impact on the travel and hospitality sectors, citing booking cancellationsโข and postponed trips that are eroding consumer confidence, particularly as the โholiday travel season approaches. The hotel industry supports 2.1 million direct jobs and contributes $894 billion to โขthe GDP, underscoring the urgency for congressional action toโ protect jobs and restore stability.
While the decline has been most pronounced in states like Nevada and Louisiana, โthe ripple effects are being felt nationwide, impacting local economies and the hospitalityโ sector asโ a whole. The future of the U.S. hotel industry remains โuncertain, contingent on shifts in travel behaviour andโ evolving global factors.
