Professional Sports Events, Concerts, and Urban Place Based Policy: Evidence from the Staples Center

Abstract

We analyze the relationship between sports events and concerts, important hospitality demand drivers and key components of many urban renewal projects, in the Staples Center in Los Angeles, an arena home to three pro teams, and nearby hotel performance, exploiting exogenous daily variation in the timing of games and concerts from 2002 to 2017. Results show a small positive impact on revenue per available room at hotels within one mile of the arena and an offsetting decrease at hotels located one to four miles away. Granting nearby hotels exemptions from Los Angeles hotel taxes reduces potential tourism-generated hotel tax revenue increases.

Do Hotels Benefit from Hosting IIHF World Championships?

“…Th e same eff ect was analyzed by Coates and Humphreys (2001) with the identifi cation of no signifi cant eff ect. In studies of Chikish et al (2017) and Chikish et al (2019), the main focus is on the hotel performance of the Los Angeles hotel market connected to the hosting of sports events in Staples Center. During the games, only hoteliers located close (in range of 1 mile) to the Staples Center benefi ted from these.…”