A few weeks ago I did a symposium with some Iraqi colleagues in Marrakech, during which I stayed at the Ryad Mogador Menara hotel, which does not serve alcohol. The locals told me that when it opened, the smart set predicted swift bankruptcy. But the hotel has done a brisk business since, including during the height of tourist season.
I wonder if a chain of hotels without alcohol could make it as a niche market in the U.S. Religiously conservative travelers might like it, just as they do in Marrakech. Families with small kids are another potential source of customers as are I suspect women travelling alone who would like to know that there will not be drunken males in the restaurant or the lobby or anywhere else. People in recovery from alcoholism might also be drawn in. And of course such hotels could also get business from people like me, who wouldn’t book a hotel on this basis but at the same time don’t care enough about alcohol unavailability to let it stop them from staying at the hotel for other reasons (in my case because it was across the street from where our symposium was held).