Though the two were spotted leaving the hotel at the same time, the two are actually staying at different hotels during their stays in the city.
"I've never seen Kendall happier and more fan friendly," one source told E! News. "They came off the elevator holding hands and then she stood and watched while he posed with fans."
The two were mobbed by fans as they exited the building.
Rumors were first sparked about the pair dating last month when they were spotted having dinner together in West Hollywood, Calif.
During an interview with Piers Morgan, Styles was a little vague about whether he was dating Jenner.
"I mean, we went out for dinner, but no, I guess," he said.
[New York Daily News]