United States -  San Antonio

The government and defense sectors are major employers for San Antonio, with Fort Sam Houston, Lackland AFB – 37th Training Wing, and Randolph Air Force Base representing primary units. In addition, San Antonio is home to five major Fortune 500 companies and a growing healthcare sector. According to the San Antonio Chamber of Commerce, one in every six San Antonio employees works in the medical industry. The San Antonio Riverwalk, The Alamo, Fiesta Texas, and SeaWorld San Antonio represent some of the main leisure attractions in the greater San Antonio area. Between 2011 and 2015, RevPAR increased roughly 5.5% each year, which has led to a healthy supply pipeline; however, demand outpaced this influx of new supply in all but one of those years. Occupancy did decline minimally in 2016 as new room inventory reached a historical high for a calendar year, but this decline was only 0.1%; moreover, ADR growth last year enabled the market to maintain overall RevPAR growth since the end of the Great Recession.

San Antonio has historically enjoyed a stable economy because of the large presence of cyclically stable sectors, such as energy, government/military, and health care. Fort Sam Houston, the primary military anchor for San Antonio, has increased its activities and personnel over the last several years, concurrent with the BRAC expansion. The development of the San Antonio Children's Hospital and the expansion of the University Hospital are expected to influence the economy positively and provide new professional employment opportunities within the region; according to the Greater San Antonio Chamber of Commerce, the economic impact of the medical industry on San Antonio surpasses $30 billion annually. With the 2009 expansion of the San Antonio River Walk, the 2008 completion of the convention headquarters hotel, and the 2016 expansion of the convention center, San Antonio's position as a tier-one convention market and as a major tourist destination is expected to continue to improve.

Given the overall growth in the city and the MSA over the past several years, hotel supply has been modest. In 2016, eleven new hotels opened, representing over 1,000 rooms. The city will continue to welcome a modest influx of new supply in 2017, including several hotels in the Central Business District and the city's popular Northwest submarket. San Antonio is anticipated to continue to absorb this new room inventory readily, and ADR growth should accelerate through 2018 with the influx of new, high-rated, upscale hotel supply in the Central Business District. However, occupancy and average rates are expected to decline in 2019 as the market normalizes following sizeable RevPAR improvements since the Great Recession.

The number of San Antonio-area hotel transactions has slowed in the last 18 months. Nearly 40 transactions have taken place since January 2015, the most notable being the Hotel Valencia selling for $46,100,000 ($216,432 per room) in April 2015. The SpringHill Suites by Marriott Downtown Riverwalk Area sold in July 2015 for $17,500,000 ($150,862 per room). Based on the diversity and stability of San Antonio's economic and employment base, as well as its positioning as a top tourist destination, the outlook for the area is generally optimistic.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

San Antonio RevPAR Change

San Antonio RevPAR

Year RevPAR
2006 66.19
2007 66.97
2008 68.18
2009 53.63
2010 55.74
2011 58.32
2012 61.42
2013 64.08
2014 67.63
2015 69.36
2016 70.22
2017 (f) 70.92
2018 (f) 75.24
2019 (f) 71.71

For more information, please contact:

David Bone
dbone@hvs.com
  • +1 214 629-0908 (w)