The Houston hotel market started 2024 strong with gains across all key metrics, compared to January 2023. Occupancy landed at 55.2%, up 2.6% year-over-year.
A broader view:
ADR, RevPAR, and Revenue all saw growth between 14%-18%, while Demand rose more than 3% compared to January 2023. ADR reached $118, an increase of 14.4%, while RevPAR and Revenue experienced gains of 17.5% and 18.2% respectively.
Driving performance:
The College Football Playoff National Championship held at NRG Stadium in early January drove occupancy and rate increases in the Medical Center/NRG submarket, saturating the market and boosting occupancy and ADR in the Downtown CBD and Galleria/Greenway Plaza submarkets as well. Group business rounded out the month with a large corporate conference driving occupancy in the CBD submarket at the end of January.
January Submarket Highlights:
Overall, Houston experienced healthy growth across all major submarkets.
- The Galleria/Greenway Plaza submarket saw substantial growth year-over-year, with an almost 14% increase in occupancy. ADR landed at $200, a 24.5% increase, while RevPAR increased 41.4% compared to January 2023. Revenue also saw significant growth with a 34.2% increase.
- Houston CBD ended the month with 54% occupancy, a 2.5% increase and ADR at $248, a 27.8% increase. RevPAR and Revenue also gained, with increases of 31% and 32.8% respectively.
- The Medical Center/NRG submarket saw an uptick in ADR, landing at $158, a 25.3% increase and occupancy at 56%, a 6.3% increase compared to January 2023.
- The North/Woodlands market showed a 15.2% gain year-over-year in Revenue and a 12.6% increase in RevPAR, ending the month at 54.3% occupancy, an almost 4% increase.
Written by Megan Henson
Pictured: The Laura Hotel, Houston Downtown, Autograph Collection
