Quarterly Update: Hotel Market
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Hotel occupancy in Houston rose in December ’24 compared to December ’23, leading to increased revenue per available room (RevPAR). Additionally, the average daily rate (ADR), another key metric of financial health, 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 64.7 percent in December ‘24, up from 60.0 percent in December ‘23. In the last five years, occupancy fell as low as 24.1 percent in April ’20, reflecting the impact of the COVID-19 pandemic. Peak occupancy was reached in July ’24 at 73.5 percent. Mid-year occupancy received a boost in May due to the derecho and in July due to Hurricane Beryl, as out-of-town utility crews needed places to stay while repairing the power grid, and families stayed in hotels until power was restored at home.
Improved occupancy boosted December ‘24 RevPAR to $77.91, up from $67.79 in December ‘23. A robust conference schedule and high-profile sporting events drove this strong performance.
Prepared by Greater Houston Partnership Research
Leta Wauson
Research Director
[email protected]
