Quarterly Update: Hotel Market

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Hotel occupancy in Houston rose in March ’25 compared to the same month last year, increasing to 67.6 percent. The modest year-over-year gain of 1.5 percent helped push revenue per available room (RevPAR) up to $78.30. The average daily rate (ADR), another key indicator of hotel performance, also saw growth over March ’24, reflecting continued recovery in the market.

Hotel occupancy fluctuates throughout the year, typically dropping in December and January before increasing during the spring and summer months. Occupancy reached 67.6 percent in March ’25, up slightly from 66.6 percent in March ’24 but below the 68.3 percent seen in March ’23. In the last five years, occupancy fell as low as 24.2 percent in April ’20, reflecting the impact of the COVID-19 pandemic. Peak occupancy was most recently recorded in July ’24 at 73.4 percent. 

Improved occupancy boosted March ’25 RevPAR to $78.30, up from $68.79 in March ’24. This growth was supported by a robust schedule of conferences and major events, including the Houston Livestock Show and Rodeo.

Prepared by Greater Houston Partnership Research

Leta Wauson
Research Director
lwauson@houston.org