The three-week period of competition in Houston for the FIFA World Cup saw relatively flat occupancy in the local hotel market compared with the same period a year earlier but was driven by higher rates that resulted in a 20% increase in revenue.

ADR, or average daily rate, grew nearly 21% to $147 during the period from June 12 to July 4. That offset a 1% marketwide dip in occupancy to 61%. The higher ADR supported a RevPAR (revenue per available room) gain of 19% to $89 and the overall increase in revenue.

Match Impact

During the three-week period, the market benefited from strong ADR, with some Inner Loop submarkets reaching rates over $300 around match days. Demand (rooms sold) and revenue were most impacted within a two-day period, where visitors checked in the night before a match and checked out the night after the match, in some cases to follow a team to a new location.

Of the matches hosted, Portugal vs. DR Congo on June 17 brought the most significant revenue impact for hotels—over $25 million in combined two-day hotel revenue to the region. The second Portugal match on June 23, this time against Uzbekistan, came in second with nearly $24 million. Netherlands vs. Sweden on June 20 also showed strong performance, ranking 3rd in combined hotel revenue, followed by the July 4 round of 16 match, played between Brazil and Japan.

Submarket Comparison:

• The Downtown/CBD submarket showed occupancy at 56%, up 1% and demand up 4-points during the three-week period. Rates rose by an impressive 40% YOY to $286, driving a 42-point lift in RevPAR to $161 and a 46% gain in total revenue.
•  The Uptown/Greenway Plaza submarket showed a nearly 7% drop in demand, which brought occupancy down 7% to 57%. However, strong ADR drove growth, increasing by 47% to $250. RevPAR increased by 27% to $142, with revenue logging a 37% lift.
•  In the Medical Center, occupancy ended the three week-period at 62%, down less than 1%, while ADR rose by 28% to $215. RevPAR sat at $134, up 27%, while revenue gained 27%.

Short Term Rentals
Occupancy across the Houston market’s short-term rentals reached 40%, up 3% over last year, while ADR hit $300, up 45% for the three-week period. RevPAR showed a 49% lift to $120, while revenue gained 39 points over last year.

Written by staff