Occupancy at area hotels is up nearly 10% so far this year as other key metrics continue to rise.
Metro Houston hotel occupancy averaged 61.9% in the first five months of the year, up 9.7% compared with the same period in 2022. The average daily rate (ADR) and revenue per available room (RevPAR), both key metrics for hotel performance, are up 9.5% and 20.1% respectively so far this year compared with 2022.
Looking at key submarkets:
- Occupancy in Downtown/CBD was 60.8% in the first five months of 2023, up 16.7% from a year earlier. ADR was up 10.4% while RevPAR rose a significant 28.8% from a year ago. Demand in the CBD is up nearly 18% from a year ago.
- The Galleria submarket experienced a 20.6% year-over-year increase in occupancy for the five-month period. ADR was up 5.7% and RevPAR increased 27.4%.
- The Medical Center/NRG saw occupancy climb to 62.2%, up 9.5% from 2022. ADR and RePAR up 12.3% and 22.9% respectively.
- The North Houston/Woodlands submarket experienced a 7.8% increase in occupancy so far this year. Demand in that area increased 8.3% year-over-year with ADR up 8.7% and RevPAR up 17.2% year-over-year.
Looking at the month of May alone, occupancy averaged 60.2% regionwide, up 1.8% compared with May 2022. ADR was up 3.7% to $114.67 while RevPAR rose 5.6% to $69.05.
Meanwhile, trends look positive for the remainder of the year with 29 major conventions booked, including a convention each week next month in July.
(Image: Pool at the Whitehall Houston hotel in Downtown)