August 2025: State Revenues Down 8%, Abilene Surge Continues

All but one of the major metros in Texas saw declining hotel revenues in August compared to August 2024. The steepest hit was in the Houston metro with revenues dropping 28.3% with revenues falling back to a more normal level after a hurricane-influenced surge in demand in August of 2024. Other metros fared better. The Dallas metro noticed a slight gain in revenue of 0.3%, but neighboring Fort Worth-Arlington had revenue drop 5.1%. San Antonio revenues slipped 1.2% and Austin-Round Rock saw a 9.8% decline with the convention center closed for renovation.

The smaller metros fared better, with the biggest gain was in the Abilene metro with revenues more than doubling compared to August 2024 amid a major AI data center construction boom. Other smaller metros post substantial revenue increases include Laredo (up 37%), Brownsville-Harlingen (up 25%), Sherman-Denison (up 16%), Waco (up 12%) and Longview (up 11%). The combined Midland and Odessa metros revenue increased 2.1%, but that was primarily Odessa up 7% as Midland dropped 1% in the period.

Overall, the state of Texas saw hotel revenues decrease 8.4% in the month of August. Non-metro areas of the state noted revenues decline 2%. The chart below shows the percent change in hotel/motel revenues by metro in August 2025 compared to August 2024.