February remained strong for the Houston hotel market, with gains across most key metrics. While occupancy dropped 1% year-over-year to 62%, ADR increased 5% to $119, and RevPAR increased 4%.

Year to date, the market continues to improve compared to the same time period last year. Occupancy in the first two months of the year grew to 58.4%, while ADR and RevPAR rose 9.4% and 10.2% respectively.

February Submarket Comparison:

Though occupancy in Houston submarkets varied, there were consistent ADR gains across all area markets in February 2024.

• The Houston CBD ended February at 63.5% occupancy and $236 in rate, a 4.7% gain. RevPAR and revenue also grew, showing increases of 4.3% and 7.8% respectively.
• The Galleria/Greenway Plaza market has seen a 6.7% year-over-year increase in occupancy at 64.9% and a 6.6% gain in ADR at $181.
• The Katy Freeway West area showed the highest overall occupancy compared to other Houston submarkets in February at 66.1% - a 2.4% increase. This submarket also gained across other key metrics, with a 6.4% increase in RevPAR and a 3.9% gain in ADR.
• The Medical Center/NRG saw growth across the board, ending February at $155 in ADR, a 6.1% increase and occupancy at 64.1%, a 2.7% increase. RevPAR showed a 9% gain, while revenue grew by 8.9%.

Driving performance:

Barbeque Cook Off launched the start of Rodeo season in Houston towards the end of February, driving higher occupancy and ADR in the Med Center/NRG submarket and causing compression into both the Galleria/Greenway Plaza submarket as well as the Houston CBD. Downtown Houston also benefited from several large conferences throughout February, which contributed to year-over-year growth in ADR and RevPAR.

Written by Megan Henson 

Pictured: The Hilton Hotel, Downtown Houston