Report: Houston hotels worse off in 2010

Thursday, August 26, 2010, 3:13pm CDT
Houston Business Journal


Houston hotels are expected to make less this year despite promising occupancy increases, according to Colliers PKF Hospitality Research.

The hotel market forecaster expects hotels in the Houston region to experience a 2.6 percent average loss in revenue per available room (RevPAR), a key indicator used to measure hospitality performance. The shift counters national expectations that most major markets will improve RevPAR about 4.6 percent this year.

“On a national level we are seeing strong growth in occupancy as business and leisure travelers return to the road,” PKF President Mark Woodworth said in a statement. “However, our analysis confirms that the sharp rise in demand during the first half of 2010 is partially attributable to the low level of room rates.”

Overall, Houston hotels are expected to decrease rates by 3.1 percent this year, while occupancy should rise by about 0.5 percent.

“In Houston, we are seeing a pattern similar to the national trend. Unfortunately, the projected percent decline in (average daily rate) is significant enough to offset the expected gain in occupancy," said Randy McCaslin in Colliers PKF Houston office.


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