November proved solid for Houston hotels, with growth across all key submarkets and market wide. Occupancy in Houston ended November at 60.8%, up 6.4% compared to the same month last year. Houston saw a 9.2% rise in rate to reach $121.46, while RevPAR continued to make steady gains, increasing 16.2% YOY to $73.87.

Year to date, Houston is pacing to exceed growth from 2023, reaching 65.6% occupancy, an 8.2% gain and $121.82 in rate, a 6.7% increase. An 8.8% rise in demand produced RevPAR gains of 15.5% to $80 and a revenue increase of 16%.

November Submarket Comparison:

  • The Houston East/Baytown submarket continues to have an exceptional year of growth, showing the largest YOY gain in occupancy, increasing 11.5% to reach 55.9%. ADR saw a 12.1% lift, while RevPAR and revenue increased an impressive 25% and 23.1%, respectively.
  • The Downtown/Houston CBD market showed a 10.7% lift in occupancy to 60.3% and 10.9% gain in ADR to $232. RevPAR increased 22.8% while a 15.4% increase in demand produced a revenue gain of 28%.
  • Occupancy peaked in the Houston North/Woodlands submarket at 64.9%, up 8.2% with a 6.3% gain in rate to reach $122. RevPAR increased 15.1% to $79, while revenue showed a 17.5% gain.
  • Houston Hobby Airport/NASA saw the highest gain in ADR, increasing 20.7% YOY to $96. The submarket ended the month with 59.2% occupancy, up 9.3% and $57 in RevPAR, up 31.9%. A 16.5% gain in demand caused increased revenue of 40.6% YOY.

Market Trends

Hotel demand is growing consistently across all property types, with the strongest gains across upper-midscale hotel classes. Upper midscale class hotels ended November at 61.8% in occupancy, the highest occupancy of all hotel types in November, and up 10.5% compared to last year. RevPAR for this class gained 21.4% and revenue increased 21.5%. The Luxury class also showed solid growth in November, seeing a 12.2% increase in rooms sold and an 18.8% lift in revenue. RevPAR gained 11.8% to reach $194, while ADR peaked at $316, up 5.9%.

Looking ahead, Houston is expected to end the year strong, with hotel demand benefiting greatly from football fans flocking to Houston this holiday season. The Texans Christmas Day game is anticipated to see a surge in fans since the announcement of the Beyonce performance at halftime. According to recent hotel booking pace data, leisure room nights committed for Christmas Day are up 5.2% year over year. The Texas Bowl, held this year on New Year’s Eve, will host LSU and Baylor, causing huge demand gains in the market. Current pace data shows a 256.6% YOY increase in leisure room nights committed on New Year’s Eve alone. However, most travelers appear to be taking the game day opportunity to have a mini New Year’s vacation, with leisure pace up 70.9% for December 30th and up 131.2% on New Year’s Day.

Written by Megan Henson 

YOY Demand (Rooms Sold) by Month

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