Texas isn't just bigger; its hotel industry is a $78.4 billion economic juggernaut powering everything from luxury escapes to family vacations, as shown by its record-breaking $12.5 billion in room revenue and 663,000 jobs statewide.
Key Takeaways
- In 2023, Texas hotels generated over $12.5 billion in room revenue statewide
- The average daily rate (ADR) for Texas luxury hotels reached $250.34 in Q4 2023, up 8.2% year-over-year
- Texas hotel industry's total economic impact was $78.4 billion in 2022, supporting 663,000 jobs
- Texas hotel occupancy rate statewide was 64.2% in 2023
- Austin hotels achieved 72.5% occupancy in Q4 2023, up 4.1% YoY
- Dallas-Fort Worth metro occupancy averaged 68.7% for 2023
- Texas hotel employment totaled 248,000 direct jobs in 2023
- Austin hotel workforce averaged 45,000 employees in 2023
- Dallas-Fort Worth hotels employed 92,500 workers in Q4 2023
- Texas hotel revenue per available room (RevPAR) statewide $98.12 in 2023
- Austin convention center hotels RevPAR $210.45 peak 2023
- DFW airport hotels RevPAR averaged $145.67 in 2023
- New Texas hotel rooms under construction totaled 15,200 in Q4 2023
- Austin added 2,800 new hotel rooms in 2023 openings
- Dallas-Fort Worth pipeline has 12,500 rooms planned through 2025
Texas hotels thrived in 2023, achieving record revenues and strong economic growth.
Development and Investment
- New Texas hotel rooms under construction totaled 15,200 in Q4 2023
- Austin added 2,800 new hotel rooms in 2023 openings
- Dallas-Fort Worth pipeline has 12,500 rooms planned through 2025
- Houston hotel investment sales volume $1.2 billion in 2023
- San Antonio opened 1,200 new upscale rooms in 2023
- Texas total hotel investment reached $4.8 billion in 2023 transactions
- Galveston new beachfront hotel projects: 900 rooms approved 2023
- El Paso added 650 extended-stay rooms in 2023
- Corpus Christi pipeline 1,100 rooms under construction 2023
- Texas luxury hotel development starts: 2,400 rooms in 2023
- Fort Worth new downtown hotels: 800 rooms opened 2023
- Texas REIT hotel acquisitions in TX: $2.1 billion 2023
- Plano legacy hotel renovations: $150 million invested 2023
- Texas adaptive reuse hotel conversions: 45 properties in 2023
- Lubbock Texas Tech area new hotels: 500 rooms pipeline
- Texas total hotel room supply grew 2.1% to 520,000 rooms in 2023
- McAllen border trade hotels new builds: 400 rooms 2023
- Texas boutique hotel openings: 28 new properties in 2023
- South Padre condo-hotel developments: 1,200 units planned 2023-25
- Texas public-private hotel partnerships funded 18 projects in 2023
- Irving new select-service hotels: 1,000 rooms opened 2023
- Texas hotel cap rates averaged 7.2% for stabilized assets in 2023
- Fredericksburg glamping/hotel hybrids: 15 new sites 2023
- Texas urban infill hotel projects: 3,200 rooms in progress 2023
- Amarillo I-40 corridor hotel expansions: 300 rooms added 2023
- Texas overall new hotel supply openings: 8,900 rooms in 2023
Development and Investment Interpretation
Texas is building hotels like it's preparing for a statewide convention of everyone, everywhere, all at once.
Employment and Workforce
- Texas hotel employment totaled 248,000 direct jobs in 2023
- Austin hotel workforce averaged 45,000 employees in 2023
- Dallas-Fort Worth hotels employed 92,500 workers in Q4 2023
- Houston hotel industry supported 68,000 jobs in 2023
- San Antonio hotels had 32,400 direct employees in FY2023
- Texas hotel average hourly wage rose to $18.45 in 2023
- Galveston hotel staff numbered 8,200 full-time equivalents in 2023
- Texas housekeeping jobs in hotels: 45,000 positions in 2023
- Front desk roles in Texas hotels: 28,000 employed in 2023
- Texas hotel management positions totaled 12,500 in 2023
- El Paso hotels employed 9,800 workers in 2023
- Corpus Christi hotel jobs reached 7,500 in peak season 2023
- Texas hotel turnover rate averaged 45.2% in 2023
- Fort Worth hotels supported 18,900 jobs in 2023
- Texas female hotel workers comprised 58.3% of workforce in 2023
- Hispanic/Latino representation in Texas hotels: 42.7% in 2023
- Texas hotel apprenticeships trained 2,500 workers in 2023
- Average tenure for Texas hotel managers: 4.2 years in 2023 survey
- Texas part-time hotel jobs: 65,000 positions filled in 2023
- Lubbock hotel employment 4,200 jobs in 2023
- Texas hotel industry added 5,200 net new jobs in 2023
- McKinney Collin County hotels employed 6,100 in 2023
- Texas servers/bartenders in hotels: 22,000 employed 2023
- Hotel maintenance staff in Texas: 15,400 positions 2023
- Southlake luxury hotels workforce 1,200 in 2023
- Texas hotel labor shortage affected 32% of properties in 2023 survey
- Frisco Dallas hotels employed 7,800 workers 2023
Employment and Workforce Interpretation
Texas hotels are a sprawling economic engine of 248,000 workers, but its gears are grinding from a 45% turnover rate, proving that while you can check out anytime you like, nearly half the staff can—and does—leave.
Market Trends and Guest Demographics
- Austin leisure travelers accounted for 42% of hotel guests in 2023
- Texas business travelers 38% of Dallas hotel stays in 2023
- Houston energy execs represented 25% of luxury hotel guests 2023
- San Antonio family vacationers 55% of summer hotel demand 2023
- Galveston cruise passengers generated 28% of hotel bookings 2023
- Texas millennial guests increased to 34% of total in 2023 surveys
- El Paso Mexico cross-border visitors 62% of hotel occupancy 2023
- Corpus Christi Texas State Aquarium visitors drove 19% hotel stays 2023
- Fort Worth cowboy event attendees 45% international in 2023
- Texas Gen Z hotel users grew 22% YoY to 18% share in 2023
- Plano corporate road warriors 51% of midweek demand 2023
- Texas domestic leisure RevPAR index 105 vs national average 2023
- Lubbock college parents/family 33% of hotel guests during semesters 2023
- Texas international arrivals to hotels up 15% post-2022 to 12M in 2023
- McAllen medical tourists from Mexico 40% of upscale stays 2023
- Texas average guest length of stay 2.3 nights in urban hotels 2023
- South Padre spring breakers average age 21-25, 85% college students 2023
- Texas OTA bookings share dropped to 42% of total reservations 2023
- Irving tech conference attendees 60% under 40 in 2023 events
- Texas direct bookings rose to 35% via hotel websites in 2023
- Fredericksburg wine tourists average spend $450 per trip incl hotel 2023
- Texas group business share of demand 22% in 2023 recovery
- Amarillo trucker stopover guests 28% of economy hotel demand 2023
- Texas loyalty program redemptions up 18% to 25% of stays 2023
- Overall Texas hotel market penetration index 102 national benchmark 2023
- Texas bleisure travelers (business+leisure) 19% of guests in 2023
Market Trends and Guest Demographics Interpretation
Texas hospitality thrives on its eclectic mix of guests, from Austin’s leisure-loving locals and Dallas' business travelers to San Antonio's family vacationers and Galveston's cruise-goers, all while deftly balancing a generational shift towards younger guests and a savvy move towards direct bookings that together paint a portrait of a diverse and resilient industry uniquely stitched from its many regional threads.
Occupancy and Demand
- Texas hotel occupancy rate statewide was 64.2% in 2023
- Austin hotels achieved 72.5% occupancy in Q4 2023, up 4.1% YoY
- Dallas-Fort Worth metro occupancy averaged 68.7% for 2023
- Houston hotel occupancy reached 66.8% in 2023, driven by energy sector
- San Antonio hotels posted 67.3% occupancy rate in FY2023
- Galveston Island hotels averaged 75.2% occupancy in summer 2023
- Texas luxury segment occupancy 71.4% in 2023
- El Paso border hotels occupancy 62.1% average 2023
- Corpus Christi hotels hit 74.6% occupancy peak in July 2023
- Fort Worth stockyards hotels occupancy 69.8% in 2023
- Texas midscale hotels occupancy 65.9% statewide 2023
- Plano suburb hotels (Dallas area) 70.2% occupancy 2023
- Texas convention hotels occupancy 73.1% during peak events 2023
- Laredo international bridge hotels occupancy 58.7% 2023
- Texas upscale hotels occupancy averaged 69.2% in Q3 2023
- South Padre Island resort hotels 82.4% occupancy March 2023 spring break
- Texas economy hotels occupancy 61.5% full year 2023
- Irving Las Colinas hotels occupancy 71.9% 2023
- Texas independent hotels occupancy 63.8% 2023
- McAllen Rio Grande Valley hotels 64.3% occupancy FY2023
- Texas full-service hotels occupancy 67.9% average 2023
- Fredericksburg wine country hotels 76.5% occupancy weekends 2023
- Texas limited-service hotels occupancy up to 66.4% in 2023
- Amarillo Route 66 hotels occupancy 62.7% 2023
- Texas overall hotel demand grew 3.2% to 210 million room nights in 2023
Occupancy and Demand Interpretation
While Texas as a whole slept soundly at a 64.2% occupancy rate, the state's hotel landscape tells a tale of two journeys: one where weary business travelers in Houston and Dallas prop up the averages, and another where sun-seekers in South Padre and wine-lovers in Fredericksburg gleefully race to book the last available room.
Revenue Metrics
- Texas hotel revenue per available room (RevPAR) statewide $98.12 in 2023
- Austin convention center hotels RevPAR $210.45 peak 2023
- DFW airport hotels RevPAR averaged $145.67 in 2023
- Houston Galleria area hotels RevPAR $188.92 Q4 2023
- San Antonio River Walk hotels RevPAR $162.34 full year 2023
- Texas TRevPAR (total revenue per available room) $165.78 in 2023
- Galveston cruise terminal hotels RevPAR $195.23 summer 2023
- Texas upper midscale RevPAR $112.89 in 2023
- El Paso Sunland Park hotels RevPAR $105.67 FY2023
- Corpus Christi bayfront hotels RevPAR $148.56 peak 2023
- Texas group revenue per occupied room $250.12 in 2023
- Fort Worth Sundance Square RevPAR $155.43 2023
- Texas transient segment RevPAR growth 9.5% to $132.45 2023
- Plano business district hotels RevPAR $138.76 2023
- Texas banquet revenue contribution 18.4% of total F&B in 2023
- Laredo gateway hotels RevPAR $92.34 average 2023
- Texas catering revenue per hotel $45,000 average 2023
- South Padre Island condo-hotels RevPAR $245.89 spring 2023
- Texas parking revenue averaged $25 per night per room in 2023
- Irving convention hotels RevPAR $172.11 2023
- Texas spa revenue in hotels grew 12% to $450 million 2023
- McAllen convention center hotels RevPAR $119.45 FY2023
- Texas golf revenue at resorts $320 million in 2023
- Fredericksburg B&B RevPAR $225.67 weekends 2023
- Texas meeting space revenue per sq ft $28.50 in 2023
- Amarillo hotel RevPAR $108.92 full year 2023
- Texas overall hotel profit per available guest (ProPAC) $45.23 in 2023
Revenue Metrics Interpretation
While Austin's convention hotels are the financial thoroughbreds, places like El Paso and Amarillo are the sturdy ponies of the Texas lodging rodeo, proving that whether you're hosting conferences or just offering a clean bed and parking, there's profit to be wrangled from every corner of the Lone Star State.
Revenue and Financial Performance
- In 2023, Texas hotels generated over $12.5 billion in room revenue statewide
- The average daily rate (ADR) for Texas luxury hotels reached $250.34 in Q4 2023, up 8.2% year-over-year
- Texas hotel industry's total economic impact was $78.4 billion in 2022, supporting 663,000 jobs
- RevPAR in Austin hotels averaged $178.56 in 2023, a 12% increase from 2022
- Dallas-Fort Worth hotel revenue hit $4.2 billion in 2023
- Houston's hotel tax revenue collections reached $450 million in FY2023
- San Antonio hotels reported $1.8 billion in total revenue for 2023
- Texas midscale hotels saw ADR growth of 7.5% to $112.45 in 2023
- Total Texas hotel guest room nights sold exceeded 180 million in 2023
- Upscale Texas hotels achieved RevPAR of $145.23 in Q3 2023
- Independent Texas hotels generated $2.1 billion in revenue in 2022
- Texas convention center hotels contributed $1.2 billion to local economies in 2023
- Average profit margin for Texas hotels was 28.4% in 2023 GOPPAR terms
- Galveston beachfront hotels saw revenue surge of 15% to $450 million in summer 2023
- Texas economy hotels reported $3.5 billion total revenue in 2023
- El Paso hotels generated $650 million in room revenue FY2023
- Corpus Christi coastal hotels hit $320 million revenue peak in 2023
- Texas upper upscale segment RevPAR grew 10.3% to $162.78 in 2023
- Lubbock hotel revenue totaled $180 million in 2023, driven by Texas Tech events
- Texas resort hotels achieved ADR of $289.12 in peak season 2023
- Amarillo Panhandle hotels revenue up 9% to $250 million in 2023
- Texas full-service hotels GOP reached $5.8 billion in 2023
- Limited-service Texas hotels RevPAR $98.45, up 6.8% YoY 2023
- Texas border city hotels like McAllen revenue $420 million in 2023
- Hill Country Texas hotels (e.g., Fredericksburg) revenue $750 million 2023
- Texas ADR statewide averaged $152.67 in December 2023
- Boutique Texas hotels revenue growth 11.2% to $1.1 billion 2023
- Texas casino-adjacent hotels (e.g., near Kickapoo) revenue $280 million 2023
- Statewide Texas hotel EBITDA margin averaged 32.1% in 2023
- Texas hotels collected $2.8 billion in state hotel occupancy taxes in FY2023
Revenue and Financial Performance Interpretation
For a state that prides itself on low taxes, Texas hotels certainly have a luxurious way of collecting them, as evidenced by the over $12.5 billion in room revenue and a statewide economic impact of $78.4 billion that proves everything really is bigger in Texas—including the bill for a good night's sleep.
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