Austin Hospitality Market Report

Metro plans for the future as uncertainty slows leisure travel. More than 40 percent of Austin hotel rooms were built in the last decade, compared with just over 16 percent of stock nationwide, emphasizing developer confidence in Austin’s long-term prospects. That said, this has also tempered post-2022 occupancy and RevPAR gains. Recent deliveries have expanded select-service stock downtown and along Interstate 35. This trend mirrors entertainment venue and office growth, both key sources of bookings. In the last two years, tech industry layoffs and office relocations led to reduced business travel, contributing to a 220-basis-point drop in metrowide occupancy. This year, however, will see a rebound in business travel, fueled by resumed hiring and new corporate headquarters, which will help total room demand achieve moderate growth. As a result, occupancy will hold above 66 percent in the CBD, Northwest Austin and the Round Rock-Georgetown area for the fourth straight year. Even with tepid leisure travel driven by high costs and economic uncertainty, Austin hospitality remains well positioned for continued growth in 2025.