San Antonio Hospitality Market Report

Occupancy reaches a 17-year high. Moderate supply additions and elevated hotel bookings have boosted San Antonio’s hotel metrics, with ADR and RevPAR both surpassing pre-pandemic averages last year. Positive momentum is expected to continue during 2023, allowing the metro’s yearlong occupancy rate to eclipse the 2019 mean, making it the first major Texas market to achieve this. Long-standing drivers of local tourism — such as Sea World and the annual Big Texas Comicon — will support regional travel to the area, helping fuel the fundamental rebound in demand. The metro’s proximity to Austin, Corpus Christi and Houston should also support a notable rise in room nights booked, as more in-state households venture closer to home for weekend getaways amid a softening in their discretionary travel budgets. Building on these demand drivers, WWE’s Royal Rumble and the NCAA Convention will be held in the metro this year, further aiding sector fundamentals. Meanwhile, a moderate volume of supply additions are slated for near-term delivery, minimizing competition for existing hotels. Together, this combination of factors will enable San Antonio to record the fourth-highest demand improvement nationally relative to 2019.