Energy firms, the Port of Houston, the Texas Medical Center, NASA's Johnson Space Center, conventions, and leisure attractions represent the primary sources of demand for Greater Houston. The Port of Galveston remains an important leisure-demand generator for the greater area, supported by continued expansion of cruise operations. Adverse weather events, such as 2017's Hurricane Harvey, the May 2024 derecho storm, and Hurricane Beryl in July 2024, can spike demand for area hotels. Historically, Houston’s occupancy has fluctuated with national economic conditions and regional energy cycles, generally ranging from the upper 50s to mid-60s in recent years. Houston’s lodging market experienced unusually strong conditions in 2024 given displacement demand following the storms. As this temporary demand subsided, performance normalized in 2025, with occupancy declining while ADR remained relatively stable. Conditions improved modestly in 2026, although RevPAR growth was driven primarily by stronger room rates rather than occupancy gains. Corporate and group activity, conventions, and major events continued to support the market, including the seven FIFA World Cup matches held in Houston during the summer. Overall, the market has moved from the elevated conditions recorded in 2024 toward a more normalized operating environment.

* 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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