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. Adverse weather events, such as 2018's Hurricane Harvey, the May 2024 derecho storm, and Hurricane Beryl in July 2024, can spike demand for area hotels. Additionally, the Port of Galveston is a key driver of leisure demand, with more than 1.6 million cruise-ship passengers traveling through the island in 2024, an increase of more than 7.0% from the prior year. Over the last two decades, Houston recorded occupancy levels in the mid-to-upper 60s, except when the nation experienced an economic downturn. Data for 2024 reflect notable growth in occupancy and ADR, driven by stable corporate and group travel, major events such as the NCAA Football National Championship in January, and rising attendance at the Houston Livestock Show and Rodeo in February and March. Weather-related displacement from the derecho and Hurricane Beryl temporarily boosted 2024 hotel performance, contributing to elevated year-end results. Occupancy has moderated thus far in 2025, most notably in January and May, due to the absence of these demand spikes. ADR has continued to improve, though RevPAR has declined as lower occupancy has offset rate gains, signaling a return to more normalized market conditions.

* 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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