Abstract

AbstractAs states and local areas consider legalizing the use of recreational marijuana, research is needed for hotel real estate owners/investors and government officials to understand its effects in a wide context. In this study, we examine the effects of recreational marijuana legalization (RML) on hotel performance in one of the areas where RML was first approved, namely the Denver area. Specifically, we analyze the effects of RML on hotel performance in the Denver area in general, whether any effects were more pronounced on certain types of hotels, and whether they were more prominent based on distance of hotels relative to recreational marijuana dispensaries. We found more support for RML positively affecting hotel revenues in certain types of hotels, particularly economy/tourist-class hotels, than for RML positively affecting hotels proximate to RML dispensaries.