Hotel Rebound Hinges on Corporate Demand

HOUSTON-Hosting the Super Bowl and the All-Star Game had a positive impact on the Bayou City’s hotel market in 2004. Next year–without such big sporting events–the hotel market will not post any large occupancy or room rates increases unless the moratorium on corporate travels ends, says John Keeling, a SVP in PKF Consulting’s local office.

“Next year will be kind of a boring year, but it could be exciting if corporate travels picks up,” Keeling tells GlobeSt.com. He says that 2005 will look a lot like 2004 from an occupancy and room rate standpoint, however. “We’ll do a bit better because of improving economic conditions, but with no sporting events, it will be a wash.”

Hotel occupancy for the metro market for the 10 months ended October 2004 was 62.8%, a 1.6% increase over the 61.2% for the same period last year, according to PKF Consulting’s most recent report. Moreover, the Houston market posted a hefty increase in both RevPAR and average daily rates. RevPAR was $57.03 for the 10 months ended October 2004, an 8.8% increase over the $52.39 posted for the same periodlast year. The average daily room rate was $90.78, a 6% increase over the $85.61 posted for the same period last year, according to PKF.