Super Bowl LIX Expected to Drive Record Hotel Revenues

As New Orleans prepares to host Super Bowl LIX on February 9th, the city’s compressed hotel market is expected to drive record-breaking hotel performance, as reported by CoStar.

Primed For Explosive Growth

For the first time since 2013, New Orleans will host the Super Bowl, an event that historically provides a big boost to local economies. Hotel operators are optimistic about near-capacity occupancy and heightened daily revenues during Super Bowl weekend.

According to Colin Sherman, director of hospitality market analytics at CoStar Group, the 2025 Super Bowl will likely outperform 2013 when it comes to key metrics.

That year, ADR and RevPAR saw 31% and 32% YoY growth, respectively. Projections for this year indicate 35% ADR growth and a 43% RevPAR increase.

• Room supply growth: Since 2013, New Orleans’ hotel room inventory has grown by 14.3%. Despite this, the city is expected to maintain high compression levels, with occupancy rates projected to reach 95–96% over Super Bowl weekend.
• Revenue potential: In 2013, hotels generated $14M in daily revenue during Super Bowl weekend, with Saturday peaking at $14.3M. With higher rates and demand expected in 2025, revenues should match or exceed those levels.

Compared to Other Cities

New Orleans draws many comparisons to Las Vegas, which hosted Super Bowl LVIII just last year. Las Vegas set the record for the highest ADR for a Super Bowl host market, driven by its upscale hotel offerings along The Strip.

New Orleans’ inventory, though significantly smaller than Las Vegas (about 25% the size), boasts a high concentration of upper-tier hotels in prime locations:

• Location advantage: 66% of New Orleans hotel rooms are located in the city’s Central Business District and French Quarter, near the Caesars Superdome.
• Luxury focus: 63% of these rooms are classified as ‘upper-tier,’ comparable to Las Vegas, where 55% of inventory on The Strip is luxury.

While the smaller inventory could limit the number of visitors who come without game tickets, it also creates a supply-driven opportunity for higher rates.

Operational Preparations

New Orleans hotels have been preparing for Super Bowl LIX since September 2024, when the NFL began allocating group blocks across the market. Most hotels sign contracts with the NFL years in advance to reserve 90% of their inventory, leaving only 10% available for public bookings.

According to Lior Sekler, chief commercial officer of HRI Hospitality, New Orleans’ tightly concentrated hotel inventory provides an edge. “With the compression, organically and naturally, the city is able to drive higher rates,” he said.

Heightened Security

Security will be a top priority following the New Year’s Day attack on Bourbon Street, which left 14 people dead. The NFL is working with federal and local authorities to bolster safety measures, including:

• Additional law enforcement presence throughout the city
• Restricted access to hotels hosting NFL teams and personnel
• Key card access requirements for guest and employee entrances
• Limited access to food-and-beverage outlets in larger hotels to control building entry

Salvatore Caccavale, principal at Global Hospitality Security Solutions, noted the primary challenge will be controlling foot traffic in high-traffic hotels while maintaining revenue-generating outlets.

Looking Ahead

Hosting the Super Bowl represents a major opportunity for New Orleans hospitality and tourism. With heightened demand, a compressed market, and premium hotel offerings, the city is positioned to potentially set a new ADR record for Super Bowl host markets.

Beyond financial metrics, the event provides a platform to showcase New Orleans as a premier destination for major events, further bolstering its reputation in the leisure and business travel sectors.