Tuesday, May 21, 2024
Home Texas Four Texas Hotel Markets Show Surge in Business

Four Texas Hotel Markets Show Surge in Business

New data reveals higher group revenue than 2019

By Amy Durham

Aerial view of the Texas shaped swimming pool at the Marriott Marquis Houston at night
Texas-shaped pool at Marriott Marquis Houston | | Courtesy of Marriott Marquis Houston

In the second quarter of this year, the hotel industry witnessed a remarkable resurgence in group revenue, reaching 102% of the figures reported in Q2 2019. This positive trend marks the most significant improvement in group business since the onset of the pandemic. These insights are derived from the Hospitality Group and Business Performance Index, a collaborative effort between Knowland and Amadeus.

Notably, the second-quarter edition of this index has expanded its scope to include data from the top 25 hotel markets in the United States. The findings show that 14 of these markets not only rebounded but surpassed their 2019 figures for the same quarter, underscoring a strong recovery. The group average daily rate exhibited a noteworthy increase, standing at 11% higher than that recorded in Q2 2019. However, it is important to note that the number of room nights booked was 8% lower than the pre-pandemic levels of 2019. The upsurge in rates played a pivotal role in boosting overall performance compared to the preceding quarter, maintaining the positive trajectory that has been in place since early 2022, as reported by Knowland.

Based on how much they exceeded Q2 2019 revenue, four of the 14 markets are in Texas: Dallas brought in 108% of pre-pandemic group revenue, Houston at 107%, San Antonio at 105%, and Austin coming in at just over 100%.

The highest producing markets were in Florida, with Miami, Tampa, and Orlando taking the top three spots with between 113% and 115% of 2019 revenue during the same quarter. Additional cities represented in the top 14 were Phoenix, Arizona; Denver, Colorado; San Diego and Los Angeles, California; New Orleans, Louisiana; Washington, D.C.; and St. Louis, Missouri.

Corporate meetings constituted a significant portion of all events in the second quarter, accounting for 62% of the total. Among these, the health care, technology, and training/education sectors exhibited the strongest volume, further signifying the revival and resilience of group business within the hospitality industry.