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> doubt hotels will get more expensive as they still have to compete with each other

They already have, by double-digit figures [1]. Both in terms of rates and average revenue per room.

There are a lot of hotels in New York. But within each lodging category, in each neighbourhood, it’s more limited. During marquee events (UN, fashion week, et cetera) or the holidays, a given set of hotels have a virtual oligopoly, as the alternative is hoofing it from New Jersey.

[1] https://www.pwc.com/us/en/industries/consumer-markets/hospit...



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