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Hotel Markets Still Sagging in Austin, San Antonio

AUSTIN-The neighboring Central Texas cities are hoping to raise the mercury on their down hospitality markets. Austin gets the first shot with the upcoming South by Southwest music festival, which is expected to attract the usual crowd.

By Tim Green | Updated on March 08, 2002

AUSTIN-As Austin hotels prepare for their biggest room-filling event, they can hope its starts a turnaround from 2001. While Austin and San Antonio showed declines in occupancy and rental rates from 2000 to 2001, Austin’s rates dropped more drastically than its neighbor down Interstate 35, according to figures from PKF Consulting.

Austin’s occupancy rate dropped 10.6% from 74.4% in 2000 to 62.8% in 2001. Room rates fell to $90.66 from $96.92, a 6.5% decrease. RevPAR was off 20% from $71.15 to $56.90. The city’s four geographic areas posted declines with the biggest in the CBD. The downward trend continued into January 2002 with occupancy down 11.7%, rates down 8.5% and RevPAR down 25.6%.

Austin hoteliers can expect the traditional crowds for the South by Southwest music, film and interactive festivals, which run for about 10 days in mid-March. The events bring about $28 million into the city’s economy. The city also welcomes the girls and boys Texas high school basketball tournaments played at the University of Texas Frank Erwin Special Events Center.

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