Energy firms, the Port of Houston, the Texas Medical Center, conventions, special events (such as 2017's Super Bowl), and leisure attractions represent the primary sources of demand for the greater Houston area. Major hurricanes, including August 2018's Hurricane Harvey, can spike demand for area hotels. Texas was one of the first states to rescind all pandemic-related restrictions, and heightened energy production and high per-barrel prices contributed to occupancy strengthening in the 2021–2022 period. Over the last two decades, Houston tended to enjoy occupancy levels in the mid-to-upper 60s, except when the nation experienced an economic downturn. In 2023, occupancy reached the 60.0% mark, improving from the level attained in 2022 but still below normal for this market during favorable economic conditions. ADR, on the other hand, surpassed the $110 mark in 2023, reaching an all-time high. The outlook for 2024 is favorable, bolstered by the city hosting the NCAA Football National Championship in January, followed by the Houston Rodeo in February and March. Anticipated growth in domestic energy production and expected increases in international travel should also support near-term improvement. The long-term outlook is also favorable, as Houston remains a global hub for the energy, medical, aerospace, and transportation industries, among others.

* 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.

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