Prohibition's 1920 implementation devastated legitimate hospitality through elimination of alcohol revenue streams generating 40-70% of profits. Iconic institutions including Waldorf Astoria, Delmonico's, Palmer House, & Palace Hotel faced 35-60% profit collapses & forced business model transformations. Prohibition simultaneously created underground hospitality economies generating estimated $2+ billion annually through speakeasies & bootlegging. Geographic variations created differential impacts, with urban centers & tourist destinations experiencing most severe devastation.