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Market Report

San Antonio Hospitality Market Report

2024 Investment Forecast

San Antonio Claims Highest Occupancy
Rate in Texas for the First Time in Two Decades

Alamo City hotels aided by a comparatively lower ADR and annual events. Occupancy in San Antonio will be the highest among all major Texas markets, surpassing Austin for the first time since 2005. This achievement is driven by increasing occupancy across all five of San Antonio’s submarkets this year, jumping at least 800 basis points in four areas. Despite ADR increasing, the metro’s average daily rate will stay $40 below Austin’s mark this year, potentially leading budget-oriented travelers to stay in lower-cost San Antonio hotels. Occupancy is also aided by comparatively low inventory relative to Dallas-Fort Worth and Houston. Even so, hospitality represents the third-largest industry in San Antonio by way of economic impact, and the rise in travel is a boon for the metro’s economy. Events and attractions drawing leisure travel this year include the newly-reopened Stable Hall, providing a music venue at the Pearl, and the Stock Show & Rodeo drawing roughly 1.5 million visitors to the fairgrounds each year. The metro also lies on the solar eclipse path of totality and hosts the Valero Alamo Bowl, which had an attendance of 56,000 in 2023.
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