From Wins to Revenue: How NBA Team Success Influences Local Hospitality Markets

This study measures how NBA team success influences local hospitality markets in smaller cities, focusing on the effects of team performance, star players, and home game frequency on Revenue Per Available Room (RevPAR). Using data from the 2012-2013 to 2018-2019 NBA seasons, a Random Effects (RE) econometric model assesses whether fluctuations in team performance significantly influence RevPAR in markets where NBA teams are a major local attraction. Results indicate that economic indicators and hotel characteristics are strongly associated with RevPAR. However, the short-term performance of NBA teams and the presence of star players have positive but statistically insignificant effects. These findings provide insights useful for hotel managers, investors, and city planners looking to understand and anticipate demand in smaller markets.