NYC Hotels Projected to Make Only Half of Anticipated Revenue from World Cup

NEW YORK, NY (06/11/2026) (readMedia)-- For New York's hotel industry, what was expected to be a major economic boom from the World Cup is looking like a big bust. In its latest projections, the Hotel Association of New York City (HANYC) slashed its forecast for hotel revenue growth during the tournament period from roughly $200 million in February to $100 million as World Cup kicks off.

The industry has been warning for months that World Cup bookings were falling short of the goal for what should be a once-in-a-generation economic opportunity. Last month, the American Hotel & Lodging Association reported that 60% of New York hotel operators were experiencing softer-than-expected bookings for World Cup, citing geopolitical instability and an international tourism slump.

International visitors, who spend on average four-times more than domestic travelers, are facing growing barriers to entry, including travel bans, visa delays, immigration crackdowns, and other travel restrictions. Those policies have dampened demand from international travelers who would otherwise be filling hotel rooms and supporting businesses across the city. The war with Iran further compounded the problem, triggering an additional 10% to 15% decline in hotel business.

At the same time, the industry and city were confronted with another significant World Cup threat from a potential hotel union strike, which would have dealt a devastating blow to hotels, hotel workers, and the broader tourism economy. HANYC successfully averted the strike with a precedent-setting contract agreement with the union just weeks before the tournament. The deal eliminated the risk of labor disruptions that could have further discouraged visitors from staying in city hotels and spending in the city, a scenario that came much closer to playing out in Los Angeles, where a possible hotel union strike was just avoided at the last minute.

The World Cup disappointment comes as the industry faces major headwinds from slowed revenue growth, persistent inflation, rising operating costs, and the prolonged tourism slowdown. Together, they threaten a cornerstone of New York City's economy that supports more than 40,000 hotel workers and 400,000 hospitality workers while generating billions in annual tax revenue that helps fund essential public services.

"We now know that the promised World Cup economic boom will be a bust. The hotel industry has been warning for months that World Cup bookings and revenue were falling short of expectations, threatening hotels and hotel workers, the larger hospitality sector, and critical revenue for the city. Just days before kickoff, hotels that were counting on a World Cup boost to offset rising costs and a prolonged slump in international tourism are slated to bring in just half of what they'd anticipated," said Vijay Dandapani, President and CEO of the Hotel Association of New York City. "The industry successfully avoided a union strike ahead of the tournament that would have been all the more devastating. Without relief, New York risks missing out not only on this opportunity, but on future major tourism events as well."