Austin Hospitality Market Report
Collection of Near- and Long-Term Demand Drivers Invigorate Hotel Performance and Investor Fervor
Room rates exceed pre-pandemic marks. Several large-scale events have returned in force, after being canceled or extremely limited in capacity during the past two years. The South by Southwest festival drew an estimated 300,000-plus attendees in March 2022, while Rodeo Austin — an event that typically records an attendance figure above 250,000 people — also returned after a two-year hiatus. Additionally, F1 inked a deal to host races in Southeast Austin through at least 2026, with tickets for the October 2022 Grand Prix already sold out. Alongside these major drivers, Austin has qualities that make it attractive to young adults and families alike. Music and entertainment venues stimulate visits by the younger cohort seeking a social getaway. Meanwhile, the University of Texas brings in athletic event attendees, as well as families and friends of students. Enhanced room demand helped propel Austin’s average daily rate to a record high of $151.27 during the yearlong period ended in May.