Houston’s hotel market saw some upticks across the board in November compared with the same month a year ago. Year to date performance remains strong compared to 2022.

Occupancy market-wide stood at 57.1% in November, up 0.8% compared to November 2022. The average daily rate (ADR) saw gains, up 4.2% to $111.20 for the month while revenue per available room (RevPAR) ticked up 5.0% to $63.52.

Driving performance: The Science Teachers Association of Texas’ CAST Conference drew over 7,000 in attendance in mid-November, with a peak of 1,400 room nights. The Texas Workforce Commission & International Association’s Annual Statewide Conference drew almost 1,000 attendees to its meeting the last week of November. But mostly smaller meetings rounded out the month.

A broader view: Metro hotel occupancy averaged 60.6% in the first 11 months of the year, up 6.3% compared with the same period a year ago. Year to date, ADR and RevPAR were up 6.7% and 13.4% respectively, compared to 2022.

Looking at key submarkets:

  • Occupancy in Downtown/CBD was 59.8% in the first 11 months of 2023, up 11.1% from a year earlier. ADR was up 5.8% while RevPAR rose 17.5% from a year ago. Demand in the CBD is up 11.1% from a year ago while revenue is up 17.5%.
  • The Galleria submarket has experienced the strongest year-over-year increase in occupancy so far in 2023, with a 15.3% uptick to 59% occupancy. ADR was up 4.5% and RevPAR increased 20.5%. Demand in the Galleria area rose 7.4% year-over-year, with revenue growth this year of 12.3%.
  • The Katy Freeway West submarket saw occupancy climb to 63.6%, up 6.6% year to date, compared to 2022. ADR and RevPAR were up 9.1% and 16.3% respectively. Demand in the submarket is up 3.2% this year while revenue is up 12.6%.
  • The Medical Center/NRG experienced a 5.4% increase in occupancy so far this year to an average of 60.0%. Demand in that area increased 10.6% year-over-year with ADR up 9.4% and RevPAR up 15.3%. Revenue in this submarket increased 21.0%, representing the highest increase of this metric amongst key submarkets.

pictured: Hallmark Holiday Suite at Hilton Americas Houston