New York is back on top of the hotel heap in 2025, pulling ahead of its Northeastern rivals as the region’s most active hospitality market and helping drag overall deal activity higher. Across the five major Northeastern hotel hubs, New York, Washington, D.C., Boston, Philadelphia and Baltimore, transaction volume climbed sharply year over year.
The region’s total sales volume rose from roughly $3.0 billion in 2024 to about $4.4 billion in 2025, an increase of nearly 50%, according to CoStar. CoStar also notes that New York stands alone as the only major Northeastern market running ahead of its 10-year average for hotel investment, a clear sign the city remains a powerful magnet for capital.
National rebound and why buyers returned
Zooming out to the national picture, U.S. hotel investment climbed to about $24 billion in 2025, with New York leading all U.S. metros at roughly $3.7 billion across 29 trades, according to JLL. The firm points to renewed private equity activity and improved debt liquidity as key reasons transactions picked up speed late in the year.
Operating strength is underwriting deals
Strong on-the-ground performance is doing a lot of the heavy lifting for New York’s hotel market. Market reports show the city consistently posted among the highest occupancy and average daily room rates of any U.S. market through 2025, according to STR. With numbers like that, it is easier for institutional buyers and private investors to line up financing and pencil out targeted renovations.
Supply, construction and local effects
While hotel construction has been muted across most Northeastern cities, New York has been the notable exception, a dynamic that both attracts capital and complicates pricing for trophy assets, CoStar reports. For owners and neighborhoods, the mix of strong demand and limited new supply suggests that sales, renovations and conversions are likely to shape the next wave of deals.
Deals to watch and the outlook
Recent New York transactions have featured large single-asset trades and repositionings. One industry survey flagged notable first quarter 2025 activity in the market, including a headline sale of the Kimpton Hotel Eventi, according to Hotel Online. Looking ahead, JLL says more stable debt markets and major events, including World Cup host city demand, are expected to create pockets of opportunity for owners and investors in 2026.
