A recent study has found that adult-use cannabis legalization significantly boosts hotel revenue. Analysis across Colorado revealed a 25.2% increase in monthly hotel income—an average gain of $63,671 per property—after recreational cannabis dispensaries opened. This revenue growth continued for at least six years post-legalization.
Further data shows room-night bookings rose by 7.9%, and daily room rates increased by 16%. Hotels closer to dispensaries, newer establishments, and higher-class properties saw the greatest gains. Properties in resort destinations experienced the biggest lift, followed by urban, airport, suburban, interstate, and small-town hotels. Chain properties outperformed franchises and independents.
Researchers note that cannabis dispensaries serve as travel drawcards, creating new tourism avenues. The appeal is strongest in areas that already attract visitors, especially where hotels and dispensaries are conveniently located together. However, some travelers remain hesitant—around 10% of leisure tourists view marijuana-legal states as less attractive. Despite that, hotel performance improved overall.
This study suggests that cannabis legalization offers a steady economic boost for the hospitality industry, especially in markets geared toward tourism and investment-grade lodging. For tourism professionals, hoteliers, and policymakers, the data underscores cannabis as a long-term asset rather than a short-lived trend.
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