Austin Hospitality Market Report

Tourism investments sustain demand amid persistent supply pressures. Occupancy in Austin continues to decrease, but at a slower pace this year. Even so, ADR and RevPAR here remain among the highest of major Texas metros, maintaining a notable lead across all service types. Formula One racing at Austin’s Circuit of The Americas (COTA) contributes to the metro’s demand. With a 135 percent increase in U.S. viewership since 2018, F1 is among the fastest-growing sports globally. Since Austin hosts the only permanent U.S. track, October tourism should increase as the COTA expands its facilities and the sport grows. Meanwhile, UT Athletics remains the most valuable college athletics program, with a stronger home-game football schedule in 2026 supporting out-of-state visitation. However, the largest convention center in Austin was demolished last year, and its replacement will not open until spring of 2029, when it is scheduled to generate approximately $750 million annually. In the meantime, Austin implemented a 2 percent nightly hotel fee, estimated to generate nearly $30 million in 2025 to support tourism-district initiatives.