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
Houston's average daily room rate in Q1/19
About 4,000 hotel rooms were under construction in Q1/19