HOUSTON-Hosting the Super Bowl and the All-Star Game had a positive impact on the Bayou City’s hotel market in 2004. Next year–without such big sporting events–the hotel market will not post any large occupancy or room rates increases unless the moratorium on corporate travels ends, says John Keeling, a SVP in PKF Consulting’s local office.

“Next year will be kind of a boring year, but it could be exciting if corporate travels picks up,” Keeling tells GlobeSt.com. He says that 2005 will look a lot like 2004 from an occupancy and room rate standpoint, however. “We’ll do a bit better because of improving economic conditions, but with no sporting events, it will be a wash.”

Hotel occupancy for the metro market for the 10 months ended October 2004 was 62.8%, a 1.6% increase over the 61.2% for the same period last year, according to PKF Consulting’s most recent report. Moreover, the Houston market posted a hefty increase in both RevPAR and average daily rates. RevPAR was $57.03 for the 10 months ended October 2004, an 8.8% increase over the $52.39 posted for the same periodlast year. The average daily room rate was $90.78, a 6% increase over the $85.61 posted for the same period last year, according to PKF.

Keeling points out that the Bayou City has managed to keep its occupancy and room rates up despite the increase in inventory. Over the past 24 months, the city’s hotel inventory has almost doubled, from 2,814 rooms at the end of 2002 to 5,292 rooms currently, according to Keeling. “Houston is doing okay. It’s certainly not in distress,” Keeling says.

Moreover, Keeling is hoping that the increase in corporate demand that Houston has experienced toward the latter part of this year will continue and grow into 2005. “We could see a very rapid increase in occupancy if we could come out of the blocks very strong,” he says. Instead of 63% occupancy that we’re forecasting, we could have 68%. The variable is corporate demand.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.