• End of February hospitality update

    by  • March 4, 2012 • CRE, Economics, General

    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



    Patrick Sprouse has over a decade of experience in the commercial real estate sector. Mr. Sprouse has held numerous positions in commercial brokerage, real estate technology and executive operations on regional, multi-market and national scales. Currently Mr. Sprouse is providing management and technology consulting service for a private real estate services company based in Washington, DC with over $1.5 billion in 2015 revenue. Mr. Sprouse has an extensive background in business management, sales engineering, project management, software selection and business analysis as well as organizational change and brand management.