Why Do Hotels Play a Significant Role in Hosting Major Sports Events?

In 2024, the Paris Summer Olympics captured the world’s attention, drawing millions of visitors to the city to witness historic athletic achievements. Paris wasn’t just a competition stage; it became an economic powerhouse, with fans, athletes, and officials filling hotels, restaurants, and entertainment venues across the city. 

Business is booming when sports are played, and the hotel industry is the best business to venture into during these times. Hotels provide lodging, meals, and other services, such as entertainment, gaming rooms, and other halls where guests can spend their time leisurely. 

So, why are hotels important during major sports events?

The Role of Hotels in Hosting Major Sports Events

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When a city bids to host a major sports event — the Olympics, the FIFA World Cup, or a national tournament — one critical factor evaluated is the capacity and quality of its hotels. Beyond their economic impact, hotels play an operational and logistical role that directly influences the event's success.

Accommodation for Athletes, Officials, and Fans

Hotels become temporary homes for athletes, team staff, event officials, and thousands of fans who travel from around the globe. For example, during the 2022 FIFA World Cup in Qatar, luxury hotels were booked fully by teams and dignitaries while midtier and budget hotels accommodated traveling supporters. Providing a diverse range of accommodations ensures comfort for various guests and maintains the seamless flow of the event.

Organizers of the 2012 London Olympics worked with local hotels to secure blocks of rooms for athletes and media personnel years in advance. This ensured proximity to venues and reduced travel-related fatigue, contributing to participants' peak performance.

Infrastructure Evaluation in Bidding Processes

When sports governing bodies assess bids, they review the city's hotel infrastructure meticulously. A lack of adequate hotel space can hinder a city’s chances of winning a bid. In contrast, cities with established or expandable hotel networks are often favored. For example, Los Angeles’ successful bid for the 2028 Olympics highlighted stadiums and the city’s vast hospitality network, which could accommodate the influx of millions easily.

Ensuring Smooth Operations

Hotels also serve as critical logistical hubs. Many teams and their staff use hotels as secure spaces for tactical meetings, recovery sessions, and media interviews. Additionally, VIPs and sponsors expect high-end accommodations that align with their status. A city’s ability to offer luxury and boutique hotels, such as those used by NBA teams during playoff series, is a significant advantage in hosting:

  • Super Bowl: Each year, the Super Bowl requires more than 25,000 hotel rooms in the host city. This includes high-profile hotels for teams and premium suites for executives and celebrities. Cities like Miami and New Orleans are selected frequently due to their hotel capacity and ability to deliver a luxury experience.
  • Formula 1 Grand Prix: In Monaco, hotels have become places to stay and viewing platforms for the race. Hotels capitalize on the event by offering exclusive packages that combine hospitality with premium race views.

A City’s Hospitality Reflects on the Event’s Prestige

The overall guest experience directly influences how an event is perceived. Comfortable accommodations with top-notch amenities contribute to the prestige and allure of the event while logistical shortcomings can lead to negative press.

Hotels are not just side players in hosting major sports events. They are integral to the event's smooth functioning, prestige, and success. Cities with robust hospitality networks position themselves as attractive hosts, reinforcing the importance of hotels in the global sports arena.

Why Hospitality Is an Ideal Investment Choice

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Steady Demand and Recurring Revenue

Hospitality isn’t limited to high seasons or sports events. Hotels, resorts, and entertainment venues experience continuous demand throughout the year. Business travelers, tourists, and corporate events ensure that rooms are booked even during off-peak times. Unlike industries that face intense seasonality, hospitality provides recurring revenue streams that help smooth out economic fluctuations.

Flexibility to Adapt to Market Trends

One of hospitality's strengths is its ability to evolve with market demands. Whether boutique hotels offer unique experiences or luxury chains provide high-end amenities, the industry can shift focus to meet changing consumer preferences. For instance, experiential travel and wellness tourism trends allow investors to diversify their offerings, increasing profitability.

High Barriers to Entry Create Competitive Advantage

Establishing a hospitality business — whether a hotel, resort, or entertainment complex — requires significant capital and operational expertise. This creates a high barrier to entry, limiting competition and allowing established players to dominate local markets. Investors benefit from long-term stability, as newer competitors find it challenging to match existing hospitality ventures' scale, reputation, and services.

Multiple Revenue Streams

Unlike other sectors, hospitality isn’t dependent on one source of income. Beyond room bookings, hotels generate revenue through dining services, event hosting, spa treatments, entertainment, and even partnerships with local tourism agencies. Sports events, weddings, conferences, and music festivals drive consistent traffic while long-term guests provide sustained income. This layered approach ensures financial resilience and growth.

Asset Appreciation and Long-Term Value

Real estate in the hospitality sector often appreciates over time, especially in key tourist destinations and growing cities. Hotels and resorts situated in prime locations benefit from increasing land values, leading to significant returns on investment. Investors not only profit from operational income but also from the appreciating value of their property.

Resilience During Economic Recovery

Historically, the hospitality sector has demonstrated a strong ability to rebound after economic downturns. After global disruptions like the pandemic, the industry experienced a rapid resurgence as travel and tourism soared. This resilience makes hospitality an appealing long-term investment as demand consistently returns stronger after periods of decline.

Growing Demand for Luxury and Niche Markets

Upscale hotels, luxury resorts, and niche experiences continue to grow as travelers seek unique, high-end stays. From eco-friendly resorts to immersive cultural experiences, investing in hospitality allows for specialization, which caters to premium markets and increases profit margins.

Strategic Location and Global Appeal

Hospitality thrives in key locations — sports hubs, significant cities, and tourist attractions — where demand is inherently high. Investing in properties near sports arenas, airports, or historical landmarks ensures a steady influx of guests. This strategic positioning translates to consistently high occupancy rates and long-term growth.

Investing at the Intersection of Hospitality, Sports, and Innovation

Champion Venture Partners (CVP) is an asset management firm that provides meaningful ownership and access to invest in sports — a rapidly expanding alternative asset class.

Beyond real estate, CVP backs businesses transforming sports, media, and technology — from professional sports teams and emerging leagues to next-generation sports tech and fan engagement platforms. As global demand for premium experiences and live events accelerates, our investments help unlock new revenue streams across multiple sectors.

We also recognize the critical role of sports medicine and healthcare innovation, investing in companies advancing athlete performance, recovery, and wellness. This holistic approach aligns with our strategy of funding businesses at the cutting edge of sports, entertainment, and real estate.

At CVP, we don’t just invest in assets — we invest in industries shaping the future.

Learn more about CVP here