The local hotel market continues to show signs of steady improvement.
Metro Houston hotel occupancy averaged 62.7% in the month of February, up 15.5% from February 2022. The average daily rate (ADR) and revenue per available room (RevPAR), key metrics for hotel performance, were up 11.5% and 29% respectively during the month compared with the year-earlier period.
The Details:
- The CBD is showing the strongest signs of improvement, with occupancy up 27.9% year-over-year and ADR up 12.2%. Midweek occupancy is ahead by almost 41% from the same time last year, while still recovering from pre-pandemic levels.
- Demand in the Galleria submarket is up 28.2% in February, with a 4.4% increase in ADR.
- The Medical Center/NRG saw occupancy increase 14.3% year-over-year while ADR was 11% buoyed by stronger weekday growth from business travel.
Looking at the first two months of 2023, occupancy averaged 58%, up 17.1% compared with January and February of 2022. ADR was up 11.4% to $108.52 while RevPAR rose 30.5% to $62.93.
Meanwhile, an analysis of bookings from Demand 360 shows Houston market demand is up over last year for the rest of 2023 and continues to show strong trends into Q2 2023. Overall business travel in Q1 is ahead of 2019 by 2% and in March that segment made up more than 30% of the overall travel mix.