City’s hotels trail others across state in recovery

Houston’s hotels were recovering more slowly than those in other Texas cities even before the delta variant dealt another blow to the industry.

Hotels in the region reported occupancy and revenues rebounded sharply from last year, when the pandemic first devastated the industry, yet they remained significantly below pre-pandemic levels during the quarter ended June 30, according to data released recently by hotel data firm Source Strategies.

The occupancy rate for Houston-area hotels jumped to 57 percent during the quarter, up from 35 percent last year. Occupancy during the same quarter in 2019 was 64 percent.

Revenue was slower to recover for the region’s hotels — revenue per room in greater Houston ranked last among the state’s major metros, according to the report. Revenue per room for the quarter rose 107 percent to $55.87 in Houston from $26.94 last year, yet was still 68 percent under 2019, according to Source Strategies.

Houston lagged because virtually all of its large conventions were canceled, according to Source Strategies. Metro areas such as Austin-Round Rock and San Antonio, which take in more tourists, recovered faster. Revenue per room for the quarter jumped 213 percent to $80.78 in Austin and 197 percent to $68.72 in San Antonio.

The Post Oak Hotel was a Houston outlier, according to the report, which listed the hotel as generating among the highest revenue per room in the state: $306.98.