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Hotel Occupancy and Room Rates

Occupancy rates in Houston hotels increased temporarily due to Hurricane Harvey but have since returned to near normal levels.
Published on 7/26/19
Hotel Occupancy and Room Rate
  • Houston’s hotel occupancy, approximately 92,000 rooms across 934 properties, averaged 63.6 percent in the first quarter of ’19, down from 68.9 in Q1/18. The average daily room rate during this period was $106.68 and revenue per available room (RevPAR) averaged $67.83 per day compared to $110.25 and $75.99, respectively, a year earlier. 

Hotel Chart


  • The region’s average occupancy was 61.9 percent for the four quarters ending Q1/19, down from 67.9 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. 

  • About 4,000 rooms across 38 properties were under construction in Q1/19. Another 4,830 rooms across 45 properties have confirmed construction starts in the next 12 months. The number of hotels under construction is lower than during Q1/18, when nearly 4,500 rooms across 36 properties were under construction. Confirmed construction starts were also slightly higher a year ago, with almost 5,000 rooms across 49 properties in the final planning stage. 

Patrick Jankowski, CERP
Senior Vice President, Research

Melissa Verhoef
Analyst, Research

Building Activity Real Estate
4,000 rooms

About 4,000 hotel rooms were under construction in Q1/19


Houston's average daily room rate in Q1/19

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