Houston Hospitality Market Report

Revenue gains span the entire market. Houston’s hotel sector is outperforming in Texas and relative to most other major metros across the country. Returning business travel is supplementing local leisure demand, helping the market record an average occupancy boost exceeding 150 basis points from July 2023 through June 2024. Meanwhile, the other three major Lone Star State metros each had drops of at least 80 basis points during that span. Local ADR growth also ranked as the second-fastest in Texas and within the top 10 nationally, driving RevPAR up by an annual pace that trailed only Las Vegas in the Sun Belt. All but one Houston submarket had increases in both average occupancy and daily rates during the 12 months ended in June 2024. As such, annual RevPAR gains were noted in every market area, including bumps above 7 percent in five locations: George Bush Airport Area, Galleria-Greenway Plaza, North-Woodlands, Southwest Freeway and Katy Freeway West.