Hotel performance softened through December ’25. Occupancy declined to 59.3 percent on a trailing 12-month basis, down from 64.4 percent one year earlier, reflecting an 8.6 percent year-over-year decline. Weaker demand pushed revenue per available room (RevPAR) down to $70.90, a 9.1 percent decrease from the prior year. Average daily rate (ADR) remained relatively stable, edging down 0.5 percent year-over-year to $120.46, as operators maintained pricing discipline despite softer volume.

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 in ’25 was March at 67.7 percent. The lowest point in the last five years occurred in December ’20 at 34.6 percent, reflecting pandemic impacts combined with the typical winter slowdown.

RevPAR in Houston declined to $70.90 on a trailing 12-month basis through December ’25, down 9.1 percent from the prior year, reflecting lower occupancy and weaker demand conditions. Average daily rate remained relatively stable at $120.46, helping offset part of the revenue decline. Performance earlier in the year benefited from strong convention and event activity, while RevPAR moderated in the second half of the year as activity moderated following unusually strong performance in ‘24.

 

Leta Wauson
Research Director
[email protected]