July 17, 2017
Investors are eyeing San Antonio hotels favorably, thanks to increasing revenue per available room (RevPAR) and average daily room rates (ADR). According to CBRE Hotels’ Americas Research, RevPAR is anticipated to increase by 3.9%, while ADR will be up by 2.6% in 2017, while market occupancy rate levels will range from 62.4% for lower-priced hotels, to 70.2% for upper-priced properties.
The reason for the favorable metrics is due to a limited pipeline and increasing hotel demand, said Michael Yu, senior vice president, CBRE Hotels. “With Houston’s market still in decline, and the Austin and Dallas-Fort Worth markets flattening out due to large hotel room supply increase, San Antonio is becoming a more attractive destination in Texas for hotel investors,” he added.
Additionally, “The Alamo City has a diversified base of business drivers, and should have higher growth than many other Texas markets moving forward,” said Dennis Drake, senior associate, CBRE Hotels.
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