Houston’s hotel market saw some metrics dip slightly in October compared with the same month a year ago, though performance year-to-date remains stronger than 2022.

Occupancy market-wide stood at 59.5% in October, down 1.9% compared with October 2022. The average daily rate (ADR) was relatively unchanged, up just 0.5% to $113.02 for the month while revenue per available room (RevPAR) ticked down 1.3% to $67.30.

Driving performance: The Texas Alliance of Child and Family Services drew roughly 1,000 attendees to its meeting in mid-October at the Marriott Marquis. But mostly smaller meetings rounded out the month. In 2022, thousands attended the American Dental Association’s Annual Meeting at the George R. Brown Convention Center while the Houston Astros' World Series appearance buoyed performance. 

A broader view: Metro hotel occupancy averaged 61% in the first 10 months of the year, up 6.8% compared with the same period a year ago. ADR and RevPAR were up 6.8% and 14.1% respectively so far this year compared with 2022.

Looking at key submarkets:

  • Occupancy in Downtown/CBDwas 60.4% in the first 10 months of 2023, up 11.8% from a year earlier. ADR was up 6.2% while RevPAR rose 18.8% from a year ago. Demand in the CBD is up 11.8% from a year ago while revenue is up 18.8%.
  • The Galleriasubmarket has experienced the strongest year-over-year increase in occupancy so far this year, with a 15.9% uptick to 59% occupancy. ADR was up 4.3% and RevPAR increased 20.9%. Demand in the Galleria area rose 8.1% year-over-year.
  • The Medical Center/NRGarea saw occupancy climb to 60.3%, up 6.1% from the first 10 months of 2022. ADR and RePAR were up 9.9% and 16.5% respectively. Demand in the submarket is up 11.2% this year while revenue is up 22.2%, the highest increase in that metric among the submarkets.
  • The North Houston/Woodlandssubmarket experienced a 4.8% increase in occupancy so far this year to an average of 62.6%. Demand in that area increased 6.9% year-over-year with ADR up 6.5% and RevPAR up 11.6% year-over-year.

Image: Post Oak Hotel Uptown 

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