Pop-Up WhyHotel Houston is Officially Open

HOUSTON—As of March 13, WhyHotel’s downtown Houston location is officially open and accepting its first guests. This location is the first in Texas for the DC-based company, which currently has pop-ups in operation in Virginia and Seattle.

WhyHotel offers new and furnished apartments with the space to live, work and relax as an alternative to a small hotel room or feeling uncomfortable in a random home. It provides the reliability and consistency of a hotel with the convenience and comforts of home, including full kitchens, in-unit washer/dryer and walk-in closets. It also has a 24/7 onsite staff.

The pop-up is operated in partnership with Camden Property Trust and will remain in operation until the building completes its natural lease-up phase and fills with permanent residents. The pop-up is located in a 21-story 271-unit residential high-rise next to the Toyota Center and less than one mile from the George R. Brown Convention Center. The pop-up hotel is also within walking distance to Minute Maid Park and BBVA Compass Stadium. The location will offer residents and hotel guests a fitness center, bar and dining spaces, as well as unique common area lounges.

“We’re excited to take our learnings from operating in other business- and tourism-rich metropolitan areas as we open our first pop-up hotel in Houston,” Jason Fudin, WhyHotel CEO, tells GlobeSt.com.  “WhyHotel’s model is a natural fit for markets like Houston, with a bustling multifamily and business landscape, and we’re looking forward to providing our hospitality to its travelers, whether they’re staying with us for work or play. The opening of our property in downtown Houston of course also means our first expansion into the south. It’s an exciting marker in WhyHotel’s journey as we continue to open properties around the country.”

The short-term rental/STR industry will expand to roughly 650,000 actively rented units in the US this year, equal to 12.2% of US hotel-room supply, as the fast-growing sector further expands in suburban, rural and resort markets, according to a new report from CBRE.

CBRE’s analysis of data on short-term rentals shows that the industry’s growth rate overall is beginning to cool off to an expected year-over-year increase of 19% this year, down from 26% in 2019 and 39% in 2018. Part of that is the effect of growing from an increasingly larger base. Another factor, however, is that some STR growth has shifted outside of big urban markets that are at or near saturation.

The major metropolitan areas of Texas rank in the top 30 largest US hotel markets for STR penetration, but the extent varies by metro. Austin has an 18% penetration, San Antonio is at 6.3%, Houston is at 4.8%, Dallas at 4.4% and Fort Worth at 3.7%.

CBRE experts say the Houston and Dallas markets will continue to grow but are expected to level off in the near future. Hotel owners across the state are keeping a close eye on the STR market as it relates to rates, revenue and STR’s growing market share of business travelers.