Austin hotel market is state’s strongest
By pretty much every metric available, Austin’s hotel market is the strongest in all of Texas – and one of the most robust in the entire nation.
That’s according to a new report from Source Strategies, a San Antonio-based hotel consulting firm.
Revenue at hotels in the Austin-Round Rock metro area was up 13 percent year over the year in the first quarter. Average occupancy was 74.4 percent – the second-highest occupancy rate in the state. The average room rate was $146.89 – more than any other Texas city. And revenue per available room – a key industry metric – was off the charts, coming in at $109.29.
“Austin is the most vibrant lodging market in the state, with revenue per available room $30 higher than any other major Texas metro,” Source Strategies senior vice president Paul Vaughn said. “In the first quarter of 2018, net room supply was 14.5 percent higher than in first quarter 2017 with 5,200 new rooms increasing the total to over 41,000 rooms. Even so, consistently rising demand over the last decade has outpaced new hotel supply.”
Looking at the top 10 Texas hotels with the highest revenue per available room, seven are located in Austin, according to Source Strategies. Dallas, Houston and San Antonio each had one.