August showed exceptional growth for the Houston hotel market, producing double digit gains across all key performance indicators (KPIs). Houston saw an almost 30-point lift in demand, causing occupancy to hit 72.7% and RevPAR to skyrocket up 44.1% to $89. ADR showed a 12.7% gain to $123, while revenue increased 45.3%.
Year to date, Houston continues to have a standout year, with a 15-point increase in RevPAR over 2023 to $81. Occupancy has increased year-over-year to 66.7%, while ADR gained almost 6% to $121.
Market Trends
In August, submarkets outside the Loop showed impressive gains in KPIs, with increases in demand ranging between 25%-50%. Houston East/Baytown, Houston George Bush Airport, Hobby Airport/NASA and the Houston North/Woodlands submarkets, in particular, showed solid growth. Spikes in demand in these submarkets are likely due to oil and gas business demand, which has been trending through the end of summer.
Houston saw an even split of weekday compared with weekend travel in August, with weekday occupancy for the overall market reaching 72%, a 30% YOY gain, while weekend travel hit 77% in occupancy, a 23.3% gain. ADR between weekdays and weekends was also comparable, with weekend ADR hitting $126, while weekday travel was slightly less at $121. RevPAR showed the largest difference between weekends and weekdays, with the metric ending the month at $87 for weekdays, a 46.4% gain, and weekends ending at $97, a 37.5%-point increase.
August Submarket Comparison:
Demand for hotels outside the 610 Loop resulted in exceptional growth in the Houston East/Baytown submarket and within the two airport submarkets.
- The Houston East/Baytown submarket showed another month of gains over August 2023, increasing in occupancy to 78.6%. ADR showed an almost 40% lift to $108, while RevPAR increased an exceptional 103.6% to $85.
- Houston George Bush Airport submarket saw occupancy rise to 79.9%, while RevPAR gained 65.1% to $83. ADR showed a 24.7% lift to $103, while demand and revenue gained 32.4% and 65.1%, respectively.
- RevPAR in the Houston Hobby Airport/NASA submarket increased 84.5% to $84, as occupancy grew to 77.2%. Rate increased 31-points to $108, while the submarket saw a 50.7% increase in demand.
- Inside the Loop, the Medical Center/NRG submarket showed a 15.2% gain in occupancy to 66.4%. ADR ended the month at $138, an 8.8% increase, while RevPAR showed a 25.3% lift to $92.
Written by Megan Henson
Pictured: Hilton Americas Houston
