Quarterly Update: Hotel Market
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Hotel occupancy in Houston rose in June ’24 compared to June ’23, leading to an increase in revenue per available room (RevPAR). Additionally, the average daily rate (ADR), another key metric of financial health, also saw an increase compared to last year.
Hotel occupancy fluctuates throughout the year, typically dropping in December and January before increasing during the spring and summer months. Occupancy averaged 70.8 percent in June ‘24, up from 67.3 percent in May and 65.1 percent in April. This is also an increase from 63.5 percent in June of last year. Occupancy fell as low as 24.0 percent in April ’20, reflecting the impact of the COVID-19 pandemic.
Improving occupancy boosted June ’24 RevPAR to the second-highest level of the past ten years. A robust conference schedule and a series of high-profile sporting events have driven strong performance.
Additionally, weather-related events like the Derecho and Hurricane Beryl caused unexpected spikes in occupancy over two-week periods, as Houstonians searched for lodging due to widespread power outages.
Prepared by Greater Houston Partnership Research
Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
pjankowski@houston.org
Leta Wauson
Research Director
lwauson@houston.org
