Austin Hospitality Market Report

Array of large-scale happenings draw sizable crowds to Austin. The full-fledged return of major events has been a boon for hotel demand in the metro. After contributing an estimated local economic impact of $281 million in 2022, including 10,000 direct hotel reservations, the SXSW festival likely generated similar benefits when held earlier this year. Austin City Limits Music Festival, meanwhile, created an even larger economic impact of almost $450 million in 2022, and should produce similar tailwinds when it takes place in October of this year. Another cornerstone of Austin’s typical annual event slate, the Formula 1 Grand Prix, will be held again in fall 2023. The day after the 2022 race took place, Austin-Bergstrom International Airport shattered its daily record for departures by 22 percent, exemplifying robust attendance. Further showcasing the importance of these major fall events, the record it broke was set just weeks earlier, in wake of the 2022 City Limits Music Festival.