Hotel assets continued to appreciate in 2016, but at a more modest pace due to slowing RevPAR growth and a rise in cap rates. The stock market rally following the election has led to cautious optimism about what 2017 will bring.
San Antonio’s array of industries, including tourism, manufacturing, technology, and defense, provide strong demand to local hotels. Given the city’s low unemployment and growing economy, hotel occupancies and average rates should continue to rise.
Underpinned by emblems of education, government, business, music, and history, Austin’s economy ranks among the best in the nation. New full-service hotels should lead to more convention demand, with hotel performance growth expected market-wide.
Corpus Christi’s economy is buttressed by tourism, an expanding international port of shipping and trade, and an energy industry that has realized enormous growth over the past few years. How have improving economic conditions affected area hotels?
Energy prices, strong for the past several years and rising in 2012, have driven impressive growth in jobs, commercial space, and other developments in Houston. This growth and major planned projects continue to pump hotel demand into the city.
Texas’ second-largest city is experiencing growth never before seen in its long and storied history.