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Job Growth and Rebounding Oil Industry Sustain Room Demand

Submarkets such as the Galleria remain attractive to investors and lenders due to the desire to place capital in Houston and the quality asset of the Hyatt Galleria drew heavy lender interest for the refinance.

Hyatt Galleria A $60 million refinance of the 325-key Hyatt Regency Houston Galleria was provided by Metlife.

HOUSTON—On the heels of a challenging 2015 and 2016 due to downward pressure on the oil and gas sector, the Houston market was further devastated by Hurricane Harvey in late August last year. While Harvey boosted occupancy and revenue metrics as displaced residents sought housing in late 2017, strong job growth and the rebounding oil industry further sustain room demand this year.

Job growth in Houston rose at a faster clip than the national average during the year ending in the second quarter, and the oil and gas industry has made a significant recovery since its low in 2016. This is resulting in a variety of forces propelling hotel occupancies in Texas.

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Lisa Brown

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

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