Bleak Oil and Gas Areas Drove Down Statewide Numbers for Texas Hotels
SAN ANTONIO (Nov. 16, 2016) – After an optimistic uptick in the second quarter, Texas hotels room revenues were down 1 percent in the third quarter according to Source Strategies, Inc., the leader in Texas hotel data collection and crunching. Third quarter non-oil and gas areas saw a revenue gain of 3.5 percent, but it couldn’t overcome the oil and gas area slump of nearly 7 percent.
Revenues dropped most severely in these Texas towns: Odessa, 36 percent; Midland, 32 percent; Victoria, 16 percent; and San Angelo, 13 percent.
“The election of a pro-business president will likely lift stats in the coming year,” says Bruce Walker, Source Strategies president. “I predict we’ll see a reduction or elimination of federal regulations in many areas that have been a drag on new investment and have driven operating costs higher for industry in general. Federal moves toward supporting energy self-sufficiency will bolster lower cost production in all sectors. Lower corporate tax rates and repatriation of off-shore earnings should also spur new investment.”
To see Source Strategies’ entire Texas Hotel Brand Report, click here. Other telling stats include:
- 12 metros showed gains while 13 declined
- The largest revenue gains since 2010 have been among the highest-priced hotels.
- In the first nine months of 2016, occupancy averaged 64.7 percent, down from 66.2 percent last year but still well above the long-term annual average of 60 percent.
- The top 10 Texas hotels for 2016 Q3 by REVPAR are, in order: Ritz-Carlton, Dallas; Travaasa Experiential Retreat, Austin; Rough Creek Lodge, Iredell; Frio Country Resort, Concan; Hotel Granduca, Houston; W Hotel, Austin; Four Seasons Hotel, Austin; The San Jose Hotel, Austin; The Joule A Luxury Collection, Dallas; and Hyatt Regency Resort and Spa, Lost Pines.
- Since 2012, 607 new Texas hotels have been added to the market, with Hampton and Holiday Inn Express being the hottest brands and accounting for more than 10 percent.
- The Hilton, IHG and Marriott franchises dominated the market, adding new rooms across all sectors.
About Source Strategies
Since 1987, Source Strategies, Inc. has been the leader in hotel consulting, providing clients with the most powerful marketing and measurement tools available in the lodging industry. Source Strategies maintains the most accurate and comprehensive Texas hotel database, covering 98 percent of hotels. Quarterly, the company crunches that data, providing clear, detailed analysis for its clients and industry analysts, having provided over a thousand financial feasibility studies for developers and lenders, and Hotel Performance Fact Books covering individual hotels.
Source Strategies’ staff has been responsible for helping launch innovative and award-winning programs such as Holiday Inn’s “The Best Surprise is No Surprise” TV advertising campaign, the creation of the Hampton Inn brand and the first frequent traveler program, among many others.
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For more information, contact Karen Carrera, 972-207-1935, firstname.lastname@example.org or on Twitter @kjcarrera.