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Eagle Ford's hotel development heads eastEagle Ford's hotel development heads easthttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=57682013-11-11T10:48:00Z2013-11-11T00:00:00Z

SAN ANTONIO - The 24-county South Texas oil-and-gas play was a hotbed for hotel and motel construction as companies working in rural oilfields scrambled for places to house thousands of workers and transient contractors.

But new construction is already slowing in some portions of the shale and could begin winding down in others within the next 12 months to 24 months, developers and market experts say.

“It can’t stay at 80 or 90 percent occupancy with $200 (revenue per room night) — that’s just insane,” says Douglas Sutton, executive vice president for San Antonio hotel consultancy Source Strategies Inc. “At some point, it’s got to level out.”

Areas west of I-37, which bisects the shale, were among the first to see construction of new hotels and motels when the Eagle Ford reached full swing. As a result, western hubs like Cotulla and Carrizo Springs are already reaching capacity.

Areas such as Gonzales in the shale’s eastern swing, are still going full bore with hospitality development. Exploration and production in the shale shifted eastward as operators expanded beyond early sweet spots west of I-37.

There are two hotels under development at the 52-acre Live Oak Crossing near Three Rivers, and two more hotel sites are expected to sell there by year-end.

The Eagle Ford occupancy rate is expected to drop to a more sustainable 55 to 60 percent, according to Douglas Sutton, executive vice president for San Antonio hotel consultancy Source Strategies Inc.

San Antonio Business Journal
San Antonio-New Braunfels
Hotel
http://www.bizjournals.com/sanantonio/print-edition/2013/11/08/hotel-development-in-eagle-ford-is.htmlRead more at {Source}

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