New Orleans Hotel Industry Generates Nearly $9 Billion Economic Impact in 2025 :: Hospitality Trends

Economic Impact of New Orleans Hotels in 2025

A report released by the American Hotel & Lodging Association (AHLA), conducted by Oxford Economics, found that New Orleans hotels generated nearly $9 billion in total economic impact in 2025. The industry supported more than 51,000 jobs in Louisiana, which represents 19% of all jobs in New Orleans. The study also reported that the hotel sector contributed almost $5 billion to the city’s gross domestic product (GDP).

The report indicated that hotels in New Orleans generated $1.2 billion in total taxes for 2025. This included $405 million in local taxes, $34 million in state taxes, and $495 million in federal taxes.

Hotel Operations and Visitor Activity

According to the study, New Orleans hotels sold 7.1 million room nights across 207 properties, offering a total of 30,612 guest rooms. Total hotel guest spending reached $5.4 billion, which equals approximately $756 per room night sold.

The hotel industry in the city supported $2.5 billion in wages and salaries for workers in 2025.

National Industry Context

The findings in New Orleans are consistent with national trends reported in the AHLA’s 2026 State of the Industry report. Nationally, the hotel industry generated $85.1 billion in taxes, supported 9.2 million jobs, and paid $128 billion in wages and benefits in 2025.

However, the industry is facing several challenges. Since 2019, hotel operating costs have risen four times faster than revenue. Insurance costs increased by 111%, utilities by 28%, property operations by 23%, administrative and general expenses by 18%, and total labor costs by 15%. Additionally, international visitation to the United States remains 17% below pre-pandemic levels.

Breakdown of Key Findings

• Supported a total economic impact of nearly $9 billion in business sales across the city
• Sustained more than 51,000 jobs — representing 19% of all jobs in New Orleans
• Contributed almost $5 billion to the city’s GDP
• Generated $1.2 billion in total taxes, including $405 million in local taxes, $34 million in state taxes, and $495 million in federal taxes
• Attracted 7.1 million room nights sold across 207 properties with 30,612 guest rooms
• Drove $5.4 billion in total hotel guest spending — the equivalent of $756 per room night sold
• Supported $2.5 billion in wages and salaries 

Study Methodology

The study, titled “The Economic Impact of the Hotel Industry: City of New Orleans,” was prepared by Oxford Economics on behalf of AHLA. It reflects estimated results for the 12-month period ending November 2025.

Industry Challenges and Policy Considerations

The report notes that the hotel industry is operating in a challenging environment with rising costs across multiple categories, including utilities, insurance, property operations, and labor. The AHLA and industry stakeholders have called for policy measures to support the sector, including business-friendly policies and efforts to restore international visitation to pre-pandemic levels.

Conclusion

The Oxford Economics study demonstrates the significant economic role of the hotel industry in New Orleans, both in terms of direct financial impact and employment. The findings highlight the sector’s importance to the local and state economies and outline ongoing challenges related to operating costs and international travel.