Hotel performance started slow in 2025, showing slight year-over-year loss in January. Occupancy for the month sat at 53.2%, down 3.6% compared to January 2024. ADR for Houston showed a 2.1% loss at $115.47, while RevPAR lost 5.6% at $61.46.
Though January growth declined year over year, these downturns were anticipated, as January 2024 brought the National Football Championship, a unique one-time event in Houston which drove demand higher than average. This past January also brought a major winter weather event that hampered some travel plans. Though Houston overall showed losses, some submarkets did see growth in KPIs, like the George Bush Airport and Houston Hobby Airport/NASA submarkets.
January Submarket Comparison:
- The George Bush Airport submarket saw a 4.7% decline in occupancy to 58.5%, but a rise in rate to $91, up 5.9%. RevPAR gained almost 1-point to $53, while revenue increased 0.6% YOY.
- The Houston East/Baytown submarket showed a slight 1.1% decline in occupancy to 51% but a 3.6% gain in rate to $80. RevPAR increased 2.4% to $41, while revenue gained almost 1%.
- Houston Hobby Airport/NASA lost 5.6% in occupancy YOY but gained 7.5% in ADR to $88. RevPAR increased 1.4% to $46, while demand and revenue increased 0.6% and 8.1%, respectively.
- The CBD/Downtown submarket gained 7.2% in occupancy to 58%, however showed an 11.7% loss in rate to $217. RevPAR decreased 5.4% to $126 but gained 10.2% in demand.
- Occupancy in the Houston North/Woodlands submarket lost 2.4% YOY to 53%. ADR gained 3.6% to $79 but lost 1.2% in RevPAR, reaching $61. Demand in the submarket decreased 0.4% while revenue increased by almost 1%.
What’s Driving the Market
PCMA, a conference for national meeting planner professionals, was held in Downtown Houston in early January. Strong demand from this conference in the CBD prompted strong year-over-year growth and significant RevPAR gains of 69.7% for the week. Events like this helped to shorten the gap between 2024 and 2025 key performance metrics. Other major events that drove the market in January include the Chevron Houston Marathon and the O’Reilly Auto Parts convention held at the George R. Brown Convention Center. The O’Reily conference accounted for over 6,200 rooms booked at the peak of the event in Downtown, causing major compression in the market.
Written by Megan Henson
Pictured: The Moran
