NYC budget raises hotel costs, threatens jobs
NEW YORK CITY’S proposed fiscal year 2027 budget may raise hotel costs and threaten jobs, according to the American Hotel & Lodging Association. A 9.5 percent increase in the real property tax could further strain hotel finances as operating costs rise.
In testimony to the New York City Council’s Committee on Economic Development, AHLA urged policymakers to consider the cumulative impact of tax increases and policy-driven costs on the hotel industry.
“Hotels are a cornerstone of the New York City economy, supporting hundreds of thousands of jobs and generating critical tax revenue,” said Rosanna Maietta, AHLA president and CEO. “At a time when international travel demand has yet to fully rebound, it is essential that policymakers avoid imposing additional burdens that could slow the industry’s recovery. A strong hotel sector is vital to the city’s broader economic health and we urge the city council to pursue policies that support growth, investment and competitiveness rather than measures that risk putting New York at a disadvantage.”