NEW ORLEANS – Downtown New Orleans’ tourism economy continued to show resilience in 2025, driven by upgraded convention facilities, new hospitality developments, and a growing pipeline of large-scale cultural projects. According to the Downtown Development District’s 2025 Q2 Market Report, these investments are not only driving visitation but also supporting thousands of local hospitality and service jobs even as the broader market adjusted to shifting travel patterns.
New Investments Drive Downtown’s Tourism Resilience
“Tourism and hospitality continued to activate Downtown, driven by marquee events like the EA Sports Collegiate Championship and developments like the opening of the Mayfair Hotel,” said DDD President and CEO Seth Knudsen. “In fact, New Orleans & Company recently reported that visitation and spending in 2024 approached pre-pandemic levels.”
Cultural Landmarks Expand and Diversify Offerings
One of the most significant cultural projects shaping this momentum is the Floyd Pavilion at The National World War II Museum, supported by a major donation from Peggy Floyd.
The new two-story facility will expand the Museum’s capacity with an exhibition design and production center, space for large artifacts and vehicles, and a new Sanderson Leadership Center. The investment will allow the Museum to broaden its leadership programming while making historic collections more accessible to learners of all ages. Museum President and CEO Stephen J. Watson described the Pavilion as a way to keep history “alive, relevant, and accessible” for future generations.
Hotel Market Adjusts as Demand Softens Slightly
Hotel market conditions reflected some softening in the second quarter of 2025. Demand fell 3.8% year over year, while supply grew slightly by 0.5%. Occupancy slipped to 64%, down from 66.8% the previous year. The average daily rate declined 3.4% to $187.61, and revenue per available room dropped 8.2% to $121.11.
Despite these headwinds, ongoing investment in cultural attractions and hospitality infrastructure continues to underpin Downtown’s appeal as both a convention hub and leisure destination.
“The residential market remains strong despite a slight uptick in vacancy, with over 6,300 housing units—up from just 2,200 before Katrina—underscoring Downtown’s transformation into a vibrant, mixed-use neighborhood. The office sector is also stabilizing, with declining vacancy rates and renewed investment, including Gayle Benson’s acquisition of 1515 Poydras and Delta Utilities’ expansion into Place St. Charles. Collectively, these developments affirm Downtown’s role as a dynamic engine for business, innovation, and culture across the region,” said Knudsen.
Together, these tourism, residential, and office trends point to a Downtown economy that continues to diversify, with visitor spending supporting retail, dining, and construction activity throughout the CBD.
In April, the Ernest N. Morial Convention Center hosted the EA Sports Collegiate Championship, drawing thousands of attendees and national coverage. The following month, the newly opened Mayfair Hotel on Canal Street added 32 luxury units and 72 bedrooms after an extensive renovation emphasizing design and guest experience.
Lighting and Infrastructure Improvements
While hospitality drives foot traffic, the DDD is also investing in infrastructure that enhances safety, accessibility, and the overall visitor experience.
“At the state level, DDD worked with State Senator Royce Duplessis and the Orleans legislative delegation to secure a $100,000 capital allocation to fund lighting improvement projects that will enhance Downtown safety and accessibility,” said Knudsen.
This quarter also marked completion of the Downtown BioDistrict Lighting Gap Analysis and Concept Identification Plan, developed by Studio West and presented to the BioDistrict New Orleans Board of Commissioners. The initiative builds on the broader BioDistrict Strategic Plan, crafted by HR&A Advisors and supported by the Greater New Orleans Foundation, the City of New Orleans, and DDD.
The plan prioritizes public safety and place identity, identifying improvements such as underpass lighting beneath the elevated expressway on Claiborne Avenue, architectural and tree uplighting along Loyola Avenue and LaSalle Street, and coordinated lighting and wayfinding among district partners. With the plan finalized, DDD will begin seeking funding and partnerships for implementation.
Mobility and Regional Connectivity
Union Passenger Terminal continues to anchor regional mobility in the Central Business District, serving as Louisiana’s busiest rail hub and a key connector for Amtrak routes including the City of New Orleans, Crescent, and Sunset Limited. Passenger traffic exceeded 170,000 in fiscal year 2024, an 8% increase from the previous year.
That growth is expected to continue with Amtrak’s Mardi Gras Service, a new daily line between Downtown New Orleans and Mobile, Alabama, with multiple Gulf Coast stops. The service will provide two round trips per day, supporting both commuter and leisure travel while strengthening economic ties across the region.
