Quick update on hospitality – which seems to be regressing a bit from an optimistic start of the year to a moderate growth from 2011.
More specifically, at the national level occupancy grew 2.3% YoY (for the week ending dFeb 25th) to an average of 61%, the average daily rate grew 4.6% to $103.84 and RevPAR grew 6.9% to $63.38. All in all, as an asset class, Hotels seem to be recovering – and with steady growth over 2011, 2012 still looks to be a window of opportunity for investors to find value before hospitality recovers to its pre-recession average economic performance and values.
On the local level, Texas is showing solid growth. Houston occupancy growth YoY was only beaten my New Orleans – with Houston occupancy rising 11.6 % to 71.6%. Houston RevPar was also strong, showing growth of 21.6% to a rate of $73.34.
Houston definitely benefited from the NBA All-star weekend as well as the start of the Houston Livestock and Rodeo – which will probably show moderate growth in all metrics for the next month – we’ll have to wait and see.From Calculated Risk