Hotel Occupancy and Room Rates
Published on 3/22/19
Hotel Occupancy and Room Rate
- Houston’s hotel occupancy, approximately 91,000 rooms across 924 properties, averaged 58.5 percent in the fourth quarter of ’18, down from 72.5 in Q4/17. The average daily room rate during this period was $102.26 and revenue per available room (RevPAR) averaged $59.82 per day compared to $110.12 and $79.83 a year earlier.
- The region’s average occupancy was 63.2 percent for the four quarters ending Q4/18, down from 66.6 percent a year ago. Hurricane Harvey caused a spike in hotel demand, first from evacuees and then from out-of-town workers in Houston to assist with recovery efforts. Without a similar event to boost demand in the near future, the four-quarter occupancy rate will likely decrease, drawing down both the four-quarter average daily room rate and RevPAR.
- More than 4,000 rooms across 36 properties were under construction in Q4/18. Another 3,700 rooms across 33 properties have confirmed construction starts in the next 12 months. The number of hostels under construction is slightly lower than during Q4/17, when nearly 4,000 rooms across 33 properties were under construction. Confirmed construction starts, in contrast, were significantly higher a year ago, with over 5,000 rooms across 48 properties in the final planning stage.
Patrick Jankowski, CERP
Senior Vice President, Research