A vibrant hotel lobby in Houston signifies the resurgence of hotel investments.
Houston, July 26, 2025
Houston is rapidly emerging as a prime location for hotel investments, with a significant rise in demand following the COVID-19 pandemic. The city benefits from critical infrastructure projects, an increase in event bookings at the George R. Brown Convention Center, and a diverse clientele that supports stability in the hotel market. Proactive strategies and record-setting revenue in the hospitality sector indicate continued growth potential, making it an attractive investment destination for hotel developers and investors.
Houston is becoming a hotspot for hotel investments as the sector rebounds from the impacts of the COVID-19 pandemic. Investors are increasingly eyeing this city for hospitality deals, driven by growth in demand and significant infrastructure developments. Reportedly, JLL’s Global Hotel Investment Outlook anticipates a 15 to 25 percent increase in national hotel transaction volumes by 2025, although the full forecast has yet to be realized.
The appeal of Houston is enhanced by substantial expansions and renovations in nearby cities such as Austin, Dallas, and Fort Worth, which have resulted in the displacement of large events that are now being redirected to Houston. The George R. Brown Convention Center has become particularly pivotal, operationally at peak capacity, and reported approximately 740,000 room nights from meetings in 2023, surpassing the previous record established in 2019. Future bookings indicate continued improvement, showing a 25 percent increase with 759 meetings representing 862,000 room nights already reserved.
Houston’s diverse traveler base, which includes segments such as corporate, government, energy, medical, SMERFE, and international visitors, contributes to stability in the hotel market. In 2024, the average hotel occupancy in the city rose by 7.7 percent, daily rates increased by 6.8 percent, and revenue per available room (RevPAR) jumped by 15 percent year-over-year. Hotel revenues in Houston reached a record high, growing by 15.5 percent over the course of 2023.
The city’s hotel market benefits from proactive strategies to adapt to national headwinds, with adjustments such as relaxed food and beverage minimums and expedited quote turnarounds proving beneficial. Furthermore, Houston’s crucial energy sector, comprised of over 3,700 energy-related businesses, thrives on increased global energy demand. Meanwhile, there has been a notable rise in extended-stay hotels and branded residential formats, catering to changing traveler needs.
Changes in travel dynamics are influencing consumer preferences, leading to a surge in demand for upper-upscale and luxury hotel segments in Houston. The city’s convenient accessibility, robust infrastructure, and competitive pricing are attracting visitors and businesses traditionally drawn to coastal cities. Recent reports indicate record-breaking performance across critical metrics such as visitation and hotel revenue, affirming the city’s potential as a growing investment market. Hotel investors are now considering various property segments, from luxury and full-service hotels to extended-stay accommodations, in their strategies.
Major events and ongoing infrastructure projects continue to solidify Houston’s standing as a vibrant hub for tourism and commerce, making it an appealing choice for investment in the hospitality sector.
As the hotel industry navigates the post-pandemic recovery, Houston’s combination of unique demand drivers, strategic capabilities, and record-low occupancy rates positions it as an attractive market for investors. With continued growth potential, Houston is set to remain a focal point for hotel investments going forward.
The key drivers for hotel investment in Houston include significant infrastructure developments, increased bookings at the George R. Brown Convention Center, and a diverse traveler base across various sectors.
The hotel sector in Houston is recovering from the effects of the COVID-19 pandemic, with rising occupancy rates, higher daily rates, and record revenue being recorded.
Forecasts indicate continued growth in hotel transactions and occupancy, driven by strong demand for upscale accommodations as well as major events and investments in the city.
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