Texas Hotels Trend Upward in Q2 2026
Texas Hotels Trend Upward in Q2 2026
Texas hotels continued to build momentum after a weak 2025 — statewide revenue rose 6.5% in Q2 versus the same period last year, while Texas short-term rental (STR) revenue jumped 39.3%. Major metros that hosted FIFA World Cup matches posted strong gains relative to those without the boost from international sports fans, and increased tourism and lodging demand from data center construction benefited smaller metros across the state.
World Cup Host Cities Lead Texas RevPAR Growth
Fort Worth-Arlington had the largest percentage increase in RevPAR among Texas’ major metros in Q2, with RevPAR up 10.6%, driven by FIFA World Cup matches at AT&T Stadium in Arlington. Dallas followed with RevPAR up 6.2%, and Houston posted a 5.4% gain after hosting World Cup matches at NRG Stadium. Growth was driven more by rate than occupancy: ADR rose 6.7% in Fort Worth, 5.0% in Dallas, and 6.6% in Houston, while occupancy gained 2.4 points in Fort Worth and 0.7 points in Dallas but slipped 0.7 points in Houston.
Short-term rentals saw an even sharper surge. STR revenue (Airbnb and VRBO) rose 54.9% in Fort Worth, 49.3% in Dallas, and 21.7% in Houston. Despite hosting no World Cup matches, STR revenue also climbed 23.2% in San Antonio and 16.2% in Austin, reflecting rapid STR growth statewide.
Austin and San Antonio Move in Opposite Directions
Austin metro RevPAR rose 3.5% after four consecutive negative quarters, with occupancy up a full point. San Antonio saw RevPAR fall 2.9%, as a 3.4% drop in ADR outweighed a 0.3-point occupancy gain — even with added room demand from the 2026 NBA Playoffs and Finals.
AI Data Center Construction Powers Small-Metro Growth
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AI data center construction and increased tourism helped small metros lead RevPAR growth across Texas. Construction on an OpenAI data center drove Abilene to the top spot, with RevPAR reaching an all-time high of $135 — above even Austin’s $117. Data center construction also lifted RevPAR in Amarillo, where multiple projects are underway in the Panhandle, while Wichita Falls, El Paso, and Lubbock benefited from increased leisure and business travel as summer began.
Among individual cities, the highest Q2 2026 RevPAR growth came from Childress (+90.6%), Snyder (+57.4%), Corsicana (+53.4%), and DeSoto (+37.8%) versus the same period in 2025 — markets booming from an influx of temporary construction workers. Not every city fared as well: Eagle Pass (-23.4%), Del Rio (-22.6%), and Longview (-15.0%) all saw RevPAR contract as demand weakened along the border and in East Texas.
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