Not jolly: NYC hotel prices hit record highs as holiday season kicks off as Hilton charges $537 a night

For travelers heading to New York City, the holiday season has brought an unwelcome surprise: soaring hotel prices.

• A Friday night at the Hilton in Times Square: $537 (including a $35 daily “destination charge”).
• A stay at Hotel Indigo in Lower Manhattan: $414.
• The Aloft Hotel near LaGuardia Airport: $351.

New York City has never been a budget destination, but these rates have left many visitors flabbergasted. September saw the average nightly rate climb to an all-time high of $417, according to CoStar, a real estate analytics firm. Only Maui had higher hotel prices during the same period.

Why Prices Are Soaring

High demand and the resurgence of tourism have driven the spike in rates. Nearly 65 million visitors are expected in 2024, nearing pre-pandemic levels. Projections suggest a record-breaking 68 million tourists could visit in 2025.

While officials from NYC Tourism + Conventions assert that the prices haven’t deterred most visitors, travelers are adapting. Many are seeking cheaper accommodations in New Jersey, Long Island, or with friends, while others delay their trips until rates decline after the holidays.

Personal Stories: Sticker Shock and Adjustments

Rahul Chhibber, visiting from London, was stunned by Manhattan hotel prices for his 10-day fall trip. Initially hoping to stay in the heart of the city, he broadened his search and finally settled on a $130-per-night Airbnb in Yonkers, commuting into the city daily.

“I don’t mind spending money when it’s worth it,” Chhibber said. “But I don’t understand how families can afford it.”

Jon Lee, a student from Colorado, planned to visit his brother in Queens but postponed his December trip when the cheapest Manhattan hotel was $600 a night at a Holiday Inn. Waiting until February saved him hundreds, with rates dropping to $200-$300 a night.

Elijah Krain, traveling from Philadelphia for the U.S. Open, faced hotel rates inflated by fees, pushing “affordable” options into the $300-$400 range. He and his girlfriend ultimately stayed at a family friend’s Manhattan apartment.

What’s Driving These Costs?

Richard Born, a prominent NYC hotel developer, said hotels haven’t raised rates beyond inflation over the past two decades. However, seasonal trends play a role. “Hotels make the bulk of their annual revenue during this time of year,” Born explained.

Additionally, higher costs at premium properties contribute to the averages. A Friday night at the St. Regis New York, for example, costs $1,854 after taxes and fees.

The Bottom Line for Visitors

For budget-conscious travelers, the city’s high hotel rates during peak season remain a challenge. Those unwilling to splurge may find relief by staying outside Manhattan or planning their visits during off-peak months when rates can drop significantly.

Despite the prices, New York City’s enduring appeal keeps drawing millions of visitors eager to experience the magic of the Big Apple—if they can afford it.