Hotel performance softened in September ’25. Occupancy fell to 55.6 percent, down from 62.1 percent in September ’24 and 62.5 percent in September ’23. The 10.4 percent year-over-year decline in occupancy pushed revenue per available room (RevPAR) down to $65.43, a 14.8 percent decrease from the prior year. The average daily rate (ADR) also slipped, falling 4.9 percent year-over-year to $117.59.

Occupancy typically dips in December and January and rises again in the spring and summer. The most recent seasonal high occurred in July ’24 at 73.2 percent, while the strongest month so far in ’25 was March at 67.7 percent. The lowest point in the last five years shown on the chart occurred in December ’20 at 34.6 percent, reflecting the ongoing pandemic impacts combined with the typical winter slowdown.

RevPAR in Houston declined to $65.43 in September ’25, down from $79.12 in September ’24, driven by weaker demand and softer rate performance. Occupancy fell year-over-year and ADR slipped, leading to the decrease in RevPAR. Summer activity included Astros home series at Daikin Park and large conventions at the George R. Brown Convention Center in July and August, along with early fall business travel and event activity at NRG Stadium and other downtown venues in September.

 

Leta Wauson
Research Director
[email protected]