Hotels & Lodging in New Orleans, LA: What Residents Actually Need to Know

If you live in New Orleans or are thinking about moving there, hotels & lodging are one of those things you probably won't think about until they affect you directly. New Orleans has 3 specific rules on the books covering different aspects of hotels & lodging, and some of them might surprise you.

Transient Occupancy Tax

New Orleans hotel guests pay among the highest combined occupancy taxes in the United States, layering state, parish, and stadium/tourism district levies onto every room night under thirty days.

Key details: State sales tax: 4.45%. Parish hotel tax: 5%. Stadium/tourism add-on: 6.75%. Combined rate: ~16.35%. Filing cadence: Monthly.

Operators failing to collect, underreporting receipts, or remitting late owe back taxes plus interest, civil penalties up to twenty-five percent, and risk losing their operational permits to host paying guests.

Compared to other cities, New Orleans takes a harder line on transient occupancy tax. The enforcement and penalty structure reflects that.

Hotel Living Wage

New Orleans Code of Ordinances Chapter 70, Section 13, requires covered employers receiving city contracts or financial assistance to pay employees a living wage above the federal minimum, indexed annually for inflation.

Key details: Authority: Code Ch. 70 §13. Original wage floor: $10.55/hour (2015). Adjustment: Annual CPI. Coverage trigger: City contracts/subsidies.

Underpayment exposes employers to back-wage claims, contract suspension or debarment from city procurement, and civil penalties enforced through the New Orleans Office of Workforce Development.

Hotel Worker Retention

Unlike Los Angeles or Washington D.C., New Orleans has not enacted a binding hospitality worker retention ordinance; transitioning hotels and convention venues handle workforce continuity through collective bargaining or voluntary policy rather than mandate.

Key details: Local mandate: None adopted. Primary lever: Union contracts. Federal floor: WARN Act notice. Preemption risk: LA RS 23:642.

Without a local ordinance, enforcement is purely contractual or grievance-based. Federal WARN notice failures may yield back pay damages, but no automatic retention right exists for non-union hospitality workers in New Orleans.

The rules around hotel worker retention in New Orleans lean permissive, but that does not mean anything goes.

The Bottom Line

New Orleans's hotels & lodging rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming New Orleans is broadly strict or permissive.

This guide is based on New Orleans's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.