Houston’s hotel inventory continues to expand with more than 20 new properties coming online in the last three years and dozens more on the horizon.
The Houston market has added just over 2,700 rooms across 22 different properties since the beginning of 2021. Developers delivered most of those projects in 2021, having begun construction prior to the onset of the pandemic.
The 16-story Blossom Houston Hotel opened near the Texas Medical Center in fall 2021 with 267 rooms and 9,000 square feet of meeting space. The luxury property features a wide array of amenities, from a state-of-the-art Peloton fitness center to a chic lobby restaurant and lounge. In the Central Business District, the 150-room Hyatt Place Houston Downtown opened in the historic Southwestern Bell building the same year.
In 2022, just a little over 200 rooms were added to the area’s inventory, including a 95-room Holiday Inn Express & Suites that opened on N. Main Street just north of Downtown. Four new properties have opened so far this year for a total of 437 rooms, including the dual branded Hyatt Place and Hyatt House Houston Medical Center with a total of 298 rooms.
Looking ahead, roughly 4,600 rooms are either under construction or planned across more than 40 properties over the next four years.
Two much-anticipated properties are slated to come online Downtown in the months ahead. The 118-room Moxy Houston will open soon in the historic former State National Bank Building on the north end of Downtown. The 13-story property promises to offer a chic, energetic vibe—think mechanical bull in the lobby. A short distance away on Allen Parkway overlooking Buffalo Bayou, the city’s first Thompson hotel property will open with 172 rooms as part of a gleaming new 32-story mixed-use tower. The upscale brand looks to offer luxury dining, a spa and wellness deck, and multiple meeting and event spaces all with a panoramic view of the Downtown skyline.
Several other hotel projects already under construction or planned include the 71-room Hotel Saint Augustine in the Museum District (2024), a 144-room AC Hotel by Marriott in Midtown (2026), and the Texas Medical Center’s 521-room hotel in its TMC Helix Park (2026).
The Bigger Picture: The local hotel market continues to strengthen. Looking at the first four months of 2023, occupancy averaged 62%, up 11.7% compared with the first four months of 2022. The average daily rate was up 10.9% to $115.86 while revenue per available room rose 23.9% to $72.29.
Since 2016, the metro region has added approximately 16,000 hotel rooms to its inventory which today totals nearly 107,000 rooms.
(Image: The Thompson Houston is part of a new mixed-use tower that includes the Residences at the Allen)