A couple of weeks ago, our Managing Director Luke Butler and US partner Benjamin Fitzgerald spent a week in New York meeting with clients and potential partners.

The city was buzzing - full restaurants, busy bars, and an unmistakable energy that only New York can deliver. Even at the tail end of summer, the hospitality industry was thriving, vibrant, and inspiring.

​Luke shares his key insights into the New York hospitality market.

• Luxury vs. Budget Divergence: The market is showing a strong bifurcation as luxury hotels and restaurants continue to thrive on affluent international tourism and business travel, while budget and mid-scale properties face pressure from alternative accommodation platforms like Airbnb.

• Experience-Led Demand: Guests are increasingly seeking immersive, localized experiences rather than standard service models. Hotels and restaurants that offer diverse programming, chef-driven menus, or neighborhood-specific partnerships are capturing more market share.

• Labor Market Constraints: Staffing remains one of the biggest challenges, with ongoing shortages in skilled culinary and front-of-house roles. Wage inflation and union negotiations continue to reshape cost structures across the city’s hospitality sector.

• Technology Integration: Contactless check-ins, mobile ordering, and AI-driven personalization are no longer optional. Many operators are investing heavily in tech to improve guest experience and streamline operations, particularly to offset labour shortages.

• Sustainability as a Differentiator: Eco-conscious travellers are influencing operators to adopt green initiatives. From food waste reduction programs to energy efficient buildings, those that can demonstrate tangible sustainability practices often attract higher spending guests and corporate clients.