Houston hotels ended April up almost 4% in revenue compared to 2025. Though occupancy showed a slight downtick at 62%, declines were due to supply increases in the market, as demand was up 1%. ADR drove gains, reaching $129, up 3% YOY and supporting a 3-point lift in RevPAR to $80.
Year to date, the market is up almost 7% in revenue, thanks to a 2.4% lift in demand and a 4.4% increase in ADR to $131. Occupancy sits at 62%, up almost 2%, while RevPAR has increased by 6% to $82.
April Submarket Comparison:
- The Downtown/CBD showed occupancy down 2.6% to 66%, however, declining occupancy is due to a 3% uptick in YOY supply, as demand showed marginal growth. ADR rose by 2 points to $234, supporting RevPAR down to flat at $154, and revenue growth of nearly 3%.
- The Uptown/Greenway Plaza submarket had a strong month, growing almost 9% in revenue, thanks to a nearly 5% lift in demand and 4% gain in ADR to $193. Occupancy grew by 4.4% to 69%, while RevPAR reached $132, up 8%.
- Revenue in the Medical Center/NRG submarket was up almost 7%, with demand increasing by 1.4% and rate gaining 5% to $158. Occupancy ended the month at 65%, a 1% gain, while RevPAR increased by 6% to $102.
- The Houston Hobby Airport/NASA submarket showed occupancy at 61.3%, up 1% YOY. ADR showed a marginal 1-point uptick to $96, supporting RevPAR at $59, up 2% and a 3-point YOY revenue gain.
- In the Houston North/Woodlands submarket, occupancy reached 64%, up 1% YOY, while rate gained 2% to $129. RevPAR increased by almost 3% to $83, and revenue gained 2-points YOY.
Behind the Numbers
The impact of a K-shaped economy continues to affect Houston hotel performance, with luxury and upscale hotels showing strong growth across major KPIs. However, in contrast, economy-scale properties showed declines in April, dropping approximately 4.5% in revenue, due to a 1-point decline in demand and a 3-point drop in ADR.
Group demand drove growth in April for many Houston submarkets, with the Uptown/Greenway Plaza submarket showing a 27% YOY lift in group occupancy and the Katy Freeway West submarket showing a 16% increase in group occupancy. Conversely, group occupancy around the major airport submarkets declined markedly. However, strong transient demand in these markets helped offset overall demand growth.
What’s Driving the Market
This year, strong ADR, or average daily rate, is driving growth in Houston, with all hotel segments besides economy scale showing consistent increases in rate. This rate growth is helping to offset some marginal declines in demand and driving revenue gains for the market overall.
Houston welcomed back FIRST Robotics to the George R. Brown Convention Center in April, which hosted over 50,000 visitors to Houston. FIRST supported strong compression throughout the city and drove revenue gains of 21% YOY for the overall Houston market at the end of April and an impressive 20% increase in RevPAR.
Written by Megan Henson
