Energy boom adds to Houston’s hotel scene

HOUSTON – The Houston hotel market is benefiting from the area’s booming oil and gas companies, as well as the medical industry, which are causing higher occupancy rates.

“Across the board, the hotel community is growing in respect to demands in all segments, from the small select service boutiques to the big convention hotels,” said Stephanie Haynes, president of the Hotel and Lodging Association of Greater Houston.

Average daily room rates will increase 6.7 percent to $107.50 per night, and citywide occupancy rates will nudge up from 68 percent to 68.5 percent in 2014, reports PKF Consulting. Whenever occupancy is above 65 percent, it’s a signal the market could support additional hotels.

By 2017, Houston’s downtown stock of hotels will jump from 16 hotels to potentially 22 or more, with the hotel room count potentially rising 44 percent, from 5,096 to about 7,350 rooms, according to Central Houston Inc.