Houston Hotels Showed Modest Demand Growth in August

Hotel demand in August grew a modest 0.6% in Houston, compared to last year. However, supply gains brought occupancy to 56%, down to flat YOY. ADR, or average daily rate, showed a 1.5% increase to $114, bringing RevPAR up by just over 1 point to $64 and revenue up 2%.

Year to date, revenue is up almost 7%over 2025, due to a 1% increase in demand and a 5.5% increase in in rate to $129. RevPAR is up 6% at $78, while occupancy is flat at nearly 61%.

August Submarket Comparison:

The Downtown Houston/CBD showed occupancy at 52%, up almost 1% over last year. ADR dropped by less than a point, down to $191, while RevPAR stayed flat at $100. Revenue increased by 3.6%, despite ADR declines, due to a 4% increase in overall demand.
Occupancy in Uptown dropped by nearly 7% to 54%, while ADR showed a 2-point uptick at $156. RevPAR ended the month at $85, down 5%, while demand and revenue dropped 6.5% and 5%, respectively.
In the Medical Center/NRG submarket, occupancy reached 57%, up 0.5%, while ADR gained 1-point at $136. RevPAR showed a nearly 2% gain at $77, while revenue increased by 2%.
The Houston North/Woodlands submarket showed occupancy at 58%, up 4 points, while ADR showed a nearly 4% lift at $118. RevPAR grew by 7% YOY to $68, while demand and revenue gained 2% and 6% respectively.
In the Katy Freeway West submarket, revenue showed a 7% YOY increase, due to a 3% increase in demand and a 4% gain in ADR to $103. Occupancy gained 3% at 59% while RevPAR grew by 7 points to $61.

Behind the Numbers

While most hotel chains showed declines, upper upscale and upscale hotel chains showed revenue growth in August, both increasing by nearly 5% YOY. This growth was supported by increased demand as well as rising rates.

Economy scale properties also showed modest gains, with demand increasing by 2%. However, ADR dropped slightly, bringing overall revenue gains to just under 1% for the month.

What’s Driving the Market

August showed a dip in group demand, as summer ended and business meetings and conferences lulled. However, transient, or leisure, demand showed a slight uptick, especially around major Astros baseball series in August, bringing transient revenue up 3% over last year.