United States -  Dallas

Dallas/Fort Worth International Airport (DFW), Love Field Airport, Kay Bailey Hutchison Convention Center, and local employers and headquarters, particularly within the telecommunications, technology, insurance, financial services, and healthcare fields, represent the primary sources of demand in the greater Dallas market. Occupancy surpassed the 60% mark from 2005 through 2007; during that same period, ADR improved above the rate of inflation year-over-year. The effects of the Great Recession caused occupancy to decline in 2008 and 2009. Occupancy rebounded in 2010 and continued to increase through 2016, reaching a new peak above 71% that year. However, data for 2017 through 2019 illustrate contractions in occupancy, attributed primarily to the effects of new supply. During the last few years, lodging demand was supported by strengthening corporate activity, particularly in the northern suburbs, as well as revitalization efforts and growth in the high-density residential, office, hotel, and retail/restaurant sectors within the downtown area. The pace of ADR growth slowed in 2017, as increased supply prompted a more competitive environment. Similar to the national average, data for 2019 reflect a minor dip in RevPAR, as the pipeline of new supply weakened occupancy and ADR growth slowed to less than 1%.

The COVID-19 pandemic significantly affected the Dallas lodging market, as illustrated by the nearly 50% RevPAR decline in 2020 when compared to the 2019 level. However, the magnitude of the decline was less severe than that experienced by the average of the top 25 markets. Nonetheless, weakened hotel demand yielded an annual occupancy of approximately 43% for 2020, while ADR plummeted to just over $85. After occupancy bracketed the 40% mark in early 2021, significant damage from a severe winter storm in February spurred an uptick in hotel demand from area residents who were displaced from water-damaged homes. In March 2021, the governor rescinded all COVID-related governmental restrictions. Year-end 2021 data reflect strengthening occupancy and ADR for the Dallas market; however, RevPAR growth for Dallas in 2021 was below the average of primary markets in the country. While lagging business travel and group demand trends are anticipated to continue in the near term, demand related to these two segments is expected to accelerate in the spring of 2022. Over the longer term, the market is positioned to recover to pre-pandemic levels, as the Metroplex's diverse base of employers and growth related to corporate relocations and numerous projects under development should assist in its recovery.

* 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:

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: More than -10%

For more information, please contact:

Kathleen Donahue
Senior Managing Director
Regional Practice Leader, Consulting & Valuation
[email protected]
  • +1 972 890-3548 (w)
Russell Rivard, MAI
Managing Partner
U.S. Hotel Appraisals Division
[email protected]
  • +1 214 766-5394 (w)
Eric Guerrero
Senior Managing Director, Partner
Brokerage & Advisory
[email protected]
  • +1 713 955-0012 (w)
  • +1 713 417-7264 (m)