Revenue growth boomed 10.5 percent in the third quarter after a slow second quarter for the Texas lodging industry.
A report by Source Strategies, Inc., a San Antonio-based provider of Texas hotel data and analysis, shows increasingly strong demand growth in oil patch markets, including Houston, with revenues up over 18 percent. Source Strategies’ quarterly Texas Hotel Brand Report says that while the oil patch is showing the most strength, revenues are up statewide.
“Except for individual hotels that are damaged, an event like Hurricane Harvey drives demand up for lodging in the affected market. Harvey turned Houston from one of the most challenging markets in the country to one of the best in Texas,” said Todd Walker, Source Strategies president. “On top of that, crude oil prices have risen steadily, and with national GDP growth a solid 3 percent during the third quarter, we expect this to be a great year for the lodging industry in Texas.”
Revenues in the top 100 oil and gas producing counties rose 18.4 percent compared to the third quarter last year, with demand as measured by room nights sold (RNS) up 14 percent. Midland-Odessa saw revenues increase 82.5 percent, Victoria was up 38.9 percent and San Angelo increased 26.3 percent. Houston’s turnaround was impressive with revenues up 22.1 percent. Part of this is attributable to oil recovery, but hurricane Harvey also drove Houston’s demand and revenue increases, according to the study.
Austin led the major metros with an 8.7 percent increase in revenues, followed by Dallas-Fort Worth with combined revenue increase of 4.2 percent. San Antonio posted very slight revenue gains of just 0.7 percent. Solid revenue gains were also posted in Corpus Christi, Killeen/Temple and Laredo.
The top 10 Texas hotels in Third quarter 2017 by revenue per available room per day (REVPAR) are, in order: Ritz-Carlton, Dallas; Frio Country Resort, Concan; Island House Council, Corpus Christi; Hotel Granduca, Houston; Rough Creek Lodge, Iredell; The San Luis Hotel, Galveston; Mansion of Turtle Creek, Dallas; Hotel Zaza, Dallas; JW Marriott Hill Country Resort, San Antonio; and W Hotel, Austin.
Dallas took over the top ten list this month, with three of the top 10 best performing hotels. The Dallas area is seeing some new hotels open, such as Frisco’s first boutique hotel, the Hotel INDIGO Frisco, which opened for business Nov. 21. Owner MDM F T, LLC. has selected KPartners Hotel Management as Hotel INDIGO Frisco’s management company.
The highest occupancy in the state goes to Austin at 74.2 percent followed by Waco at 73.8 percent. High occupancies were also reported for Fort Worth/Arlington, Wichita Falls, Laredo Midland/Odessa, Dallas and Amarillo.
For more information:
http://sourcestrategies.org/