Occupancy in Houston for July 2025 is down 20% compared with last year, at 58.5%, due to a 20% loss in overall demand. ADR showed an almost 11% decline at $115, while RevPAR and revenue dropped almost 29% each. Part of the decline can be attributed to inflated performance last year due to Hurricane Beryl.
Year to date, Houston hotels are showing a 7% loss in occupancy to 61%, but a 1.6% gain in rate to $123. RevPAR in July is down almost 6% to $75, while demand and revenue dipped 7.6% and 6.1%, respectively.
July Submarket Comparison:
- In the CBD/Downtown submarket, occupancy showed a large YOY dip, declining 26% to 49%. ADR showed a 9% decline to $186, while RevPAR and revenue dropped 33% and 31%, respectively.
- The Uptown/Greenway Plaza submarket showed a 14% decrease in occupancy to 57% and an almost 14% drop in rate to $147. RevPAR lost 25.5% YOY to $84, while demand and revenue showed a 20% and 31% decline.
- Occupancy in the Medical Center/NRG decreased almost 19% to 55.5%, while ADR showed a 10-point decline at $132. Demand decreased by 20% YOY, while RevPAR dipped to $73, down 27%.
- The Houston Southwest Freeway submarket showed occupancy at 61.8%, down 17.3% and ADR at $85, down 18.9%. Overall demand in the submarket dipped 17.3%, while RevPAR dropped by 33% over last year.
- The Katy Freeway West submarket ended the month at 59% occupancy, down 18.6% YOY and $132 in rate, down 10%. RevPAR showed a 26.8% decline, while demand and revenue dropped 20% and 28%, respectively.
Behind the Numbers
Unlike previous months in 2025, the market showed declines across all hotel class segments in July. Though declines were felt less significantly in the upper upscale and luxury markets, the market still experienced double-digit drops in occupancy and revenue across every class. Similarly, hotels of all sizes declined in July, with the largest losses in occupancy and revenue felt by small-scale hotels of less than 75 rooms.
What’s Driving the Market
Major year-over-year losses in July can be attributed to its comparison to Hurricane Beryl, which hit Houston after Fourth of July weekend in 2024. A large volume of displacement of locals, on top of contractors moving into the market for post hurricane repair created an uncharacteristically high level of demand and compression in the market overall that is not typical of July demand in Houston. The market can expect to see the impact of hurricane demand on hotel numbers through Q3. These declines are expected to affect outer loop submarkets most significantly.
Though Houston welcomed some major events and conferences to market in July, like the Gold Cup and the Jr. Olympics, these events ultimately did not produce enough demand to offset the effects of Hurricane Beryl.
Written by Megan Henson
