Hotel occupancy rates in Austin rank at the top of all Texas metropolitan areas

Marcus & Millichap released it Midyear 2024 Austin Hospitality Market Report.

“The Austin hotel market continues to demonstrate resilience despite recent supply pressures and continues to have one of the highest occupancy rates in Texas,” said Marcus & Millichhaps Allan Mille.

Marcus & Millichap’s Austin Hospitality Midyear 2024 report provides investors with insights and analysis on the current state of the Austin Hospitality market, including:

• Austin led the major Texas markets with an occupancy rate of 67.4%, exceeding the 2000-2019 average despite new hotel openings.
• A 4% increase in the average daily rate (ADR) led to a rise in luxury hotel prices, with the metro area’s ADR at $173.83, among the highest in the South.
• Near-term challenges include the closure and redevelopment of the Austin Convention Center, which is expected to impact the events sector through 2029.
• Investor interest in hotels built after 2000 remains high. Acquisitions increased the average price per room by 18% to $209,000.
• The Austin-Bergstrom International Airport area saw peak passenger traffic, sparking interest in nearby mid-range accommodations.