Occupancy at area hotels was up 9.3% in the first half of 2023 as the health of the Houston lodging market continues to improve.

Metro Houston hotel occupancy averaged 62.1% in the first six months of the year, up 9.3% compared with the same period in 2022. The average daily rate (ADR) and revenue per available room (RevPAR), both key metrics for hotel performance, are up 8.9% and 19% respectively so far this year compared with 2022.

Looking at key submarkets:

• Occupancy in Downtown/CBD was 61.3% in the first six months of 2023, up 17.9% from a year earlier. ADR was up 9% while RevPAR rose a significant 28.5% from a year ago. Demand in the CBD is up nearly 18% from a year ago.
• The Galleria submarket experienced a 20.3% year-over-year increase in occupancy for the six-month period. ADR was up 5.9% and RevPAR increased 27.3%.
• The Medical Center/NRG area saw occupancy climb to 61.9%, up 9% from 2022. ADR and RePAR were up 11.5% and 21.6% respectively.
• The North Houston/Woodlands submarket experienced a 6.6% increase in occupancy so far this year to an average of 63.7%. Demand in that area increased 7.6% year-over-year with ADR up 7.8% and RevPAR up 15% year-over-year.

Looking at the month of June alone, occupancy averaged 63.3% regionwide, up 7.8% compared with June 2022. ADR was up 5% to $114.67 while RevPAR rose 13.2% to $72.61.

The month of July is expected to show strong performance when those numbers are finalized thanks to a series of major conventions across the four-week period.

(Image: The Laura Hotel)