HOUSTON (May 14, 2026) – The first quarter of 2026 broke records for the highest demand, average daily rate, and revenue in the Houston hotel market, positioning the region’s hospitality industry for continued momentum through the remainder of the year. 

The three months that ended March 31 represented the best first quarter on record for the Houston market by multiple metrics. A 5% increase in average daily rate (ADR) compared with Q1 2025, coupled with a 3-point increase in demand (or rooms filled), helped increase revenue nearly 8% compared to a year earlier. Revenue was up compared with 2025 in each of the three months of the quarter, with March recording the biggest year-over-year gain at 12.5%.

“The record visitation to Houston for the first three months of the year is further evidence of Houston’s continuing rise as a premier destination,” said Houston Mayor John Whitmire. “I am proud that these results show Houston is heading in the right direction and most importantly creating more jobs for Houstonians.”

The Houston hotel market is geographically vast, with more than 100,000 hotel rooms stretching from The Woodlands in the north to Texas City in the south. All major submarkets saw revenue growth for the quarter. The Downtown hotel submarket had a particularly strong quarter, with ADR up 8% to $265, demand up 5% and revenue up 13% over 2025.

“Many factors contributed to the record-setting success we saw in the first quarter of the year – Houston’s elevated brand as a destination, a packed and multi-layered schedule of high-value conventions and events, and the momentum being built by sharp strategies on marketing and promotion,” said Michael Heckman, president and CEO of Houston First. “But it’s our hospitality partners and stakeholders who work each day to deliver on the promise we make as a destination. This is a win for them.”

The quarter benefited from a strong mix of business and leisure travel, particularly in March. Here’s a look at a few of the drivers and their impact:

January

• O’Reilly Auto Parts Leadership Conference

February

• NAPE Summit (energy conference)
• NCA All-Star National Championship (cheerleading)

March

• American College of Healthcare Executives Congress on Healthcare Leadership
• World Baseball Classic
• Spring Break
• Houston Livestock Show & Rodeo
• NCAA Men’s Basketball South Regionals
• CERAWeek (energy conference)
• Tournaments LLC Cross Court Classic (volleyball)

Many local hospitality industry leaders, from restauranteurs to hoteliers, pointed out that the quarter, and March in particular, proved exceptional for their business.

“What truly set this quarter apart for us was the way multiple events and conferences were layered together, creating a dynamic mix of demand opportunities,” said Nicki Keenan, Chief Operating Officer of the Houston-based national hospitality conglomerate Fertitta Entertainment. “This not only benefited leisure travelers but also drove significant revenue for our restaurants, attractions, and hotels across Houston. By hosting a variety of events including corporate, association, sporting, and major championships, we were able to maximize exposure and capitalize on every opportunity the city offered.”

In addition to Houston’s role as a host city for the FIFA World Cup this summer, major conventions and events through the remainder of the year are expected to help deliver continued healthy demand. Here are a few:

• FIRST Robotics (April/May): 50,000 attendees
• American Clean Power Association (June): 8,300
• Texas High School Coaches Association (July): 18,000
• American Public Works Association (August): 5,000
• American Society of Plastic Surgeons (October): 3,500
• Texas Association of School Boards and Texas Association of School Administrators (October): 5,000
• AfroTech (November): 20,000
• ENCORE Championships (December): 20,000

About Houston First Corporation
Houston First Corporation (HFC) is a local government corporation and the destination marketing organization for the country's fourth largest city. In addition to serving as operator for the George R. Brown Convention Center and some of Houston's most prominent art, entertainment, and event venues, HFC is focused on promoting the city's vibrancy and rich tapestry of culture. By harnessing the city's collective energy, ambition, and creativity, including its diverse culinary scene, world-renowned performing arts, medical and space innovation, and elite filming locations, HFC is solidifying Houston as a premier national and global destination. For the latest news and info regarding HFC, visit www.houstonfirst.com.

CONTACTS:   

A.J. Mistretta, aj.mistretta@houstonfirst.com, 713-853-8155 (o), 504-450-3516 (m)
Carolyn Campbell, Carolyn.campbell@houstonfirst.com, 713-853-8273 (o), 713-530-4778 (m)