Key performance indicators for the area hotel market remained on the uptick in August and for the year thus far, according to recently released figures.
Metro Houston hotel occupancy averaged 61.3% in the first eight months of the year, up 8% 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 7.7% and 16.4% respectively so far this year compared with 2022.
Looking at key submarkets:
- Occupancy in Downtown/CBD was 60.4% in the first eight months of 2023, up 15.8% from a year earlier. ADR was up 9.2% while RevPAR rose 26.4% from a year ago. Demand in the CBD is up 15.8% from a year ago.
- The Galleria submarket experienced a 17.4% year-over-year increase in occupancy for the eight-month period. ADR was up 4.9% and RevPAR increased 23.2%. Demand in the Galleria area rose 11.8% year-over-year.
- The Medical Center/NRG area saw occupancy climb to 60.6%, up 7.8% from the first eight months of 2022. ADR and RePAR were up 9.9% and 18.4% respectively. Demand in the submarket is up 12.9% this year.
- The North Houston/Woodlands submarket experienced a 6% increase in occupancy so far this year to an average of 62.8%. Demand in that area increased 7.8% year-over-year with ADR up 6.9% and RevPAR up 13.3% year-over-year.
Looking at the month of August alone, occupancy averaged 56.8% regionwide, up 4.7% compared with August 2022. ADR was up 5.2% to $108.24 while RevPAR rose 10.2% to $61.53 year-over-year.