This is because NYC’s hotel labor unions successfully lobbied to enact a law requiring city council approval to build new hotels in the city. Effectively damning any new developments to endless hand wringing and grandstanding from NIMBYs and other interests.
Many new hotels in recent years were staffed with non-union labor, this was their way to secure leverage in perpetuity.
I’m sympathetic to the union’s position, but this law is going to damage the city’s economy and make NYC unaffordable for many wishing to visit.
https://therealdeal.com/new-york/2022/12/09/how-special-are-...
https://www.nytimes.com/2021/04/27/nyregion/hotels-tourism-n...