New Orleans Hotel Performance Set to Surge Amid Super Bowl LIX

• The hosting of Super Bowl LIX is expected to drive near to full occupancy rates at New Orleans hotels, with key indicators like average daily rate (ADR) and revenue per available room (RevPAR) projected to surpass 2013’s records.
• Despite a significant growth in room supply in New Orleans since it last hosted the Super Bowl in 2013, the city’s hotel industry is set to match or even exceed the occupancy levels and daily revenue achieved during that event.

As the hosting city for Super Bowl LIX on February 9, New Orleans is preparing for a significant boost in hotel performance, with projections suggesting it could rival or surpass previous records. The city’s hoteliers anticipate near to full occupancy during this period, driven by the influx of visitors for the NFL’s championship game.

According to Colin Sherman, director of hospitality market analytics in Texas and the U.S. South for CoStar Group, New Orleans could see larger year-on-year increases in average daily rate (ADR) and revenue per available room (RevPAR) in 2025 than it experienced in 2013, the last time it hosted the Super Bowl. Historical data shows a 31% and 32% increase in ADR and RevPAR respectively in 2013, with predictions for this year indicating potential increases of 35% and 43%.

Despite the city’s room supply growing by 14.3% between 2013 and 2025, occupancy and daily revenue levels are expected to remain high. Around 66% of the total room inventory is concentrated in the central business district and French Quarter submarket, with many hotels near the Caesars Superdome.

Las Vegas set the record for highest ADR ever by a Super Bowl host market in 2021, and with New Orleans’ total inventory about a quarter of what Las Vegas was last year, the city could potentially set a new record. However, the smaller inventory could also limit the number of visitors who come to experience the Super Bowl without game tickets.

Security measures have been ramped up in the city following the attack on Bourbon Street on New Year’s Day. In collaboration with the NFL and federal law enforcement, local authorities are working to ensure the safety of visitors and residents during the event.

The economic impact of hosting the Super Bowl is significant for New Orleans, with the event expected to bring in substantial revenue for the hospitality industry. As the city prepares to welcome football fans from around the country, it is gearing up for what could be a record-breaking period for its hotel sector.

Discover more at CoStar.