If you want to go to a major event in another city, you need to think about where you are going to stay. Unless you can stay with family or friends, you are likely looking at a hotel. Since New Orleans is hosting back to back events this year, the Super Bowl and Mardi Gras, we looked at annual revenue per hotel room in New Orleans with the help of the team at LARC.
Lodging Analytics Research and Consulting (LARC) provides a full suite of premium services to assist real estate and lodging companies to formulate astute business decisions through transparent and advanced analytics-driven forecasting. Before LARC GIS, investors and developers would rely on qualitative information from in-market interviews, requiring a considerable amount of time, effort and travel expense only to yield best guesses about given hotel location strength. Now, from their own desktops, they can get real data informing those decisions, saving, time, effort, and money all while generating a better understanding of a given location.
While not tied to a certain event, LARC looks at the annual revenue per room to help hotel owners determine profitability and competitiveness within their own market. The map below shows the city of New Orleans with the annual revenue per room, which highlights the main tourist areas as being most expensive annually.
Since these two events take place in the heart of the tourist areas in New Orleans, centered on Canal and Bourbon streets, it’s safe to assume that hotels that average $100 a night annually see rates far higher during these events. This is considered in their scores, and during unseasonable times, hotel rates are lower than their annual average. Similarly to the annual average, the farther you are away from that peak tourist area, the less expensive rooms will be for these events, as the hotels cannot charge the same premium price as hotels within walkable distances to these events.
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