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New York City hotels will cost less this summer as city suspends occupancy tax

May 20, 2021
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3 min read
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New York City hotels will cost less this summer as city suspends occupancy tax
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If you need another reason to book that New York City summer trip you've been thinking about, here's one more: Hotel rooms just got a little bit cheaper.

Mayor Bill de Blasio has signed an executive order that suspends the city's 5.875% hotel room occupancy tax for the summer to help kickstart the ailing hotel industry, one of the hardest-hit business sectors during the COVID-19 pandemic.

The occupancy tax will be eliminated for all bookings for three months from June 1 through Aug. 31, 2021. It's hoped that waiving the tax for the summer season will motivate hotels to lower rates and drive demand for bookings.

“As our COVID rates continue to plummet and we continue to drive a recovery for all of us, tourists will be coming back to New York City in droves," said Mayor de Blasio in a statement after signing the executive order. "We’re ready for them."

Hotel industry leaders said the move provides some instant relief for the city's all-important leisure and hospitality sector, which lost an estimated 257,000 jobs in 2020, according to NY1.

"The temporary occupancy tax waiver is a much-needed lifeline that is strongly welcomed by the beleaguered hotel industry,” said Vijay Dandapani, President & CEO of the Hotel Association of New York City.

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City officials estimate revenue from the hotel room occupancy tax is down nearly 90% compared to the past fiscal year, with the pandemic and its crippling impact on travel and tourism the clear leading factor.

So how much will not paying the occupancy tax save you on a hotel room? As an example, we looked into booking a room at one of the most famous hotels in Midtown Manhattan, the St. Regis New York. For a sample weekend in June, a deluxe room booked through the hotel's official website costs $922 per night. Removing the 5.875% occupancy tax would save you $54.16 per night.

While that not sound like much for each night individually, on a two-night stay, that comes out to a savings of $108.32.

(Image courtesy of Marriott)

Let's look at a more budget-friendly accommodation option: the Hyatt Place New York/Midtown-South. For the same weekend in June, a two-night stay at the property costs $350.40 for the room rate only. On top of that, the occupancy tax represents an additional $10.29 each night. In other words, you could be saving $20.59 on your two-night stay.

(Image courtesy of Hyatt)

Put another way: The money you save from the withheld tax could pay for a good meal at a restaurant in the city.

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

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  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.