Robert Fiederlein, our Vice President of Planning and Infrastructure and in-house real estate expert, expertly curates the North Houston District’s Commercial Real Estate Market Reports. These reports deliver hyperlocal insights, offering a detailed view of market trends and shifts within the North Houston District’s boundaries. Gain an insider’s perspective on industrial, office, retail, and multifamily dynamics, all tailored to the unique characteristics of our area.

Hotels in the North Houston District Performing Better than Pre-Pandemic

By Robert Fiederlein, Vice President, Planning & Infrastructure

The North Houston District is home to quite a few business travel-focused hotels. This segment of the market includes everything from a La Quinta Inn or Hampton Inn to Hilton and Marriott-branded hotels (“upper midscale” to “upper upscale” in hospitality lingo). Altogether, there are 12 such properties comprising 1,733 rooms in the District.

In this article, we’ll try to answer how they are doing (spoiler alert: better than you might have thought). But first, we need to define some specific hospitality industry terms and explain a few challenges with collecting the data.

Let’s start with the terms.

The principal performance metric used for hotels is “REVPar,” or revenue per available room. This is simply the product of two other numbers: occupancy and the average daily rate for a room, or “ADR.” In mathematical terms: REVPar = occupancy × ADR. No more math, I promise. But it’s intuitively logical—my revenue is how many people are in my hotel multiplied by what they are paying.

Now, the data.

As you think about the terms we just defined, you can imagine that hotel operators wouldn’t necessarily want to share this data with their competitors. That’s why CoStar—our data source and one of the largest in the commercial real estate industry—aggregates data by submarkets and applies a weighted average across the properties in each area. As a result, we don’t know how any one hotel is performing, but we can see how the submarket is performing overall and how that performance has changed over time.

So, how are the business-focused hotels doing in the District?
Just fine—one might even say better than fine.