Hotel performance weakened during much of ’25 before showing improvement in early ’26. Occupancy rebounded to 69.9 percent in March ’26, up 3.5 percent year-over-year and above the seasonal low observed in December ’25. RevPAR followed a similar pattern, declining through much of ’25 before improving in early ’26. Average daily rate (ADR) remained relatively stable over the period.

Occupancy typically dips in December and January and rises again in the spring and summer. Over the March ’21 to March ’26 period, the highest occupancy was recorded in July ’24 at 73.1 percent, while the strongest month in ’25 was March at 67.6 percent and the lowest point occurred in December ’21 at 48.0 percent. Occupancy reached 69.9 percent in March ’26, approaching prior peak seasonal levels.

RevPAR in Houston declined across much of ’25 before improving in early ’26. After reaching $88.38 in March ’25, RevPAR fell through the summer months, and then rebounded to $98.93 in March ’26, an 11.9 percent increase year-over-year. Average daily rate remained relatively stable over the period, helping support revenue levels despite fluctuations in occupancy. The pattern reflects softer performance during much of ’25 following stronger results in ’24, with recent data indicating a return to growth.

 

Leta Wauson
Research Director
[email protected]