Key performance indicators for the area hotel market were up for July as well as the year so far, according to recently released figures.
Metro Houston hotel occupancy averaged 62% in the first seven months of the year, up 8.5% compared with the same period a year ago. The average daily rate (ADR) and revenue per available room (RevPAR), both key metrics for hotel performance, are up 8% and 17.2% respectively so far this year compared with 2022.
Looking at key submarkets:
- Occupancy in Downtown/CBD was 61.1% in the first seven months of 2023, up 16.6% from a year earlier. ADR was up 8.7% while RevPAR rose a significant 26.7% from a year ago. Demand in the CBD is up nearly 16.6% from a year ago.
- The Galleria submarket saw an 18.5% year-over-year increase in occupancy for the seven-month period. ADR was up 5.7% and RevPAR increased 25.3%.
- The Medical Center/NRG area saw occupancy climb to 61.1%, up 8.2% from 2022. ADR and RePAR were up 10.8% and 20% respectively.
- The North Houston/Woodlands submarket experienced a 6.3% increase in occupancy so far this year to an average of 63.5%. Demand in that area increased 7.6% year-over-year with ADR up 7% and RevPAR up 13.7% year-over-year.
Looking at the month of July alone, occupancy averaged 61.3% regionwide, up 3.8% compared with July 2022. ADR was up 2.8% to $111.99 while RevPAR rose 6.7% to $68.64.
(Image: Trellis Spa at The Houstonian)