Key Takeaways
- NYC hotel sales reached $1.08 billion through Q3 2026, up 18.4% year over year.
- Hotels were one of the fastest growing asset classes in the city.
- Zoning and licensing rules shape which properties can operate as hotels.
Mendy's Original Take
From the Mendy Realty archive, first published by Mendy Lipsker.
Brooklyn has much to offer residents and visitors alike. There is a thriving arts community as well as a cultural scene centered in the Brooklyn Academy of Music. The dozen or so universities in the area also make the area very appealing. The new Barclays Center is attracting top entertainment talent and is part of a large area called the Atlantic Yards. This area is being developed to include residential, business and retail establishments.
Lately, the community has begun attracting hotel developers including full service upscale hotels. Tourists certainly need hotel rooms, but right now it is mainly companies who sometimes need thousands of rooms per year for business meetings, etc.
In addition, many, many of the people who are staying are literally just guests of all the people moving to and residing in Brooklyn. They consist of extended friends and family that need places to stay. Visitors are drawn to the lower prices in Brooklyn, which is a mere train ride away from Manhattan. The average daily rate for a room is $167.96, while in Manhattan it would be $261.29.
One of the other reasons for the surge in hotel development in Brooklyn is that while land is about 50% less expensive than in Manhattan, land in Manhattan is also getting quite scarce.
According to NYC & Company, the city’s official marketing and tourism organization, 53 of the hotels that opened in New York City from January 2011 to June 2014, were in Brooklyn. By 2016, Brooklyn expects to open 8 more.
2026 NYC Hotel Market Snapshot
Hotels were one of the fastest growing asset classes in 2026, with sales volume up sharply as investors returned to hospitality.
NYC sales growth by asset class, 2026 YTD
Figures through Q3 2026 include projected closings.
How To Evaluate A Hotel Opportunity
Check zoning and permits
Confirm the property is legally allowed to operate as a hotel.
Review performance
Study occupancy, room rates, and operating costs.
Plan the exit
Know whether you will hold, reposition, or sell.
Common Questions
Is the NYC hotel market growing in 2026?
Yes. Hotel sales volume rose 18.4% through Q3 2026.
Can I convert a building into a hotel in Brooklyn?
It depends on zoning and city rules. A feasibility review is the first step.
Related Reading
Talk To A Brooklyn Broker
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718.751.0738Market figures compiled from public records and published market data. Information is believed reliable but not guaranteed and should be independently verified.
