NYC Hotels Down To 10% Occupancy, Average Price Plunges Over $200 As The Mass Exodus Takes Its Toll

NYC hotels and for that matter hotels, in general, have received the short end of the stick and it couldn't be more pronounced than the collapse we're witnessing in NYC. Tourism has really stalled and the demand shock could continue to pressure the cities economy. In the beginning of the 2020 recession, they were already warning the city was bankrupt and thus needed a bailout and has been dealing with a significant drop off in economic activity. When the luxury hotels started opening up their doors to the homeless in the (lucrative) deal they made with the city people were saying it was a bad idea because the hotel could be ruined or have their reputation ruined. However, the hotels that didn't get that deal likely won't endure the severity of this recession. Some industry analysts are suggesting due to hotels not submitting data the NYC hotel occupancy rates are currently less than 10% rather than the 40% they are asserting, the problem is this time last year there was a 92% occupancy rate for the 700 NYC hotels. Now 200 of those hotels remain closed no doubt due to lack of demand as tourism and business travel dwindles away.