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Market Report

Houston Hospitality Market Report

2024 Investment Forecast

Travel to Houston Steadily Returns,
While Development Projects Offer Long-Term Tailwinds

Occupancy in Houston is largely segmented by submarket and class. Areas near travel routes, like Katy Freeway West and the George Bush Intercontinental Airport area, will claim Houston’s highest occupancy rates in 2024. Katy expects long-term tourism improvement as city officials finalize plans for a conference center and hotel at the Katy Boardwalk District, in addition to Interstate 10 traffic from San Antonio. Meanwhile, the Bush Airport registered an approximate 6 percent uptick in flights year-over-year, with 46.1 million passengers in 2023. Bookings are also improving in the CBD and Houston Galleria-Greenway Plaza, but occupancy will stubbornly hold below both the submarkets’ and service level’s pre-pandemic marks. Still, overall business travel has begun to recover in Houston. As such, group travel and subsequent demand for full-service hotels is likely to continue increasing long-term, momentum further boosted by the George R. Brown Convention Center recently receiving $2 billion in improvement funding.
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