June for the Houston hotel market showed solid gains compared to 2023.

Occupancy rates rose 11.6% to land at a respectable 70.8%, while revenue per available room (RevPAR) increased 16.4% to $85. ADR showed a 4.4-point lift at $120, as demand increased overall in June by 12.1%. Revenue also showed a significant lift at 17% year-on-year.

The market continues to see substantial growth year-to-date, as RevPAR increased 7.2% at $77. Occupancy showed an almost 4% increase at 64.5% and ADR gained 3.2% at $120.

Market Trends

Visitors are travelling to Houston this summer, but budget is a consideration, as higher prices affect the market. Consequently, Budget, Economy and Mid-price scale properties saw the most significant year-over-year increases in Occupancy, ADR and RevPAR in June.

Weekend performance slightly outperformed weekday performance for the month of June, with weekend occupancy landing at 75% and weekdays at 69%. However, weekday year-over-year growth slightly outpaced weekends across KPIs.

June Submarket Comparison:

• The George Bush Airport submarket saw the highest occupancy rates compared to other Houston submarkets, with occupancy at 75.6%, an 8.9% YOY increase. A 9% gain in demand supported significant RevPAR growth of 22.7%, as ADR increased 12.7% to $97.
• The Houston Northwest market also saw strong growth in June, with average occupancy sitting at 75.2%, a 22% gain. ADR showed an almost 11-point pick up at $91, while RevPAR gained 35.2% year-over-year. A demand increase of 16.8% helped to support spikes in revenue of almost 30%.
• Demand in the Galleria/Greenway Plaza submarket increased almost 14%, strengthening occupancy rates to 64.4%, a 13.6% gain. ADR ended the month at $164, a 3% lift, while RevPAR showed a 17% increase at $105.
• The CBD/Downtown submarket saw occupancy rates of 64.9%, an almost 1-point increase, and ADR at $214, a 5.5% increase. RevPAR sat at $139, a 6-point gain, and overall demand increased 4.6%.

Driving performance:

The market hosted several city-wide conferences—conferences hosting more than 1,500 rooms booked on peak--Downtown in June. City wide conferences included the International Dairy Deli Bakery Association Conference, the Associated Professional Sleep Societies conference, and HOSA – International Leadership Conference – all of which hosted between 3,500-4,500 room nights on peak. Houston also hosted two COPA matches in June, which created increased demand, particularly in the Medical Center/NRG submarket, as well as the Galleria/Greenway Plaza market.

Written by Megan Henson 

Pictured: The Laura Hotel