According to the Midyear 2024 Austin Hospitality Market Report by Marcus & Millichap, the hotel market in Austin has shown remarkable resilience despite facing supply pressures. Allan Mille of Marcus & Millichap stated that Austin continues to maintain one of the highest occupancy rates in Texas.
The report provides valuable insights and analysis for investors on the current state of hospitality market in Austin. Despite new hotel openings, Austin surpassed its 2000-2019 average with a leading occupancy rate of 67.4% among major Texas markets.
Luxury hotels saw a rise in pricing with an increase of 4% in average daily rate (ADR), reaching $173.83 – one of the highest rates among southern states.
However, there are some challenges ahead such as closure and redevelopment plans for the Austin Convention Center which is expected to impact events sector until 2029.
Investor interest remains strong for hotels built after year 2000 as acquisitions have driven up average price per room by18%, reaching $209,000.
The area around Austin-Bergstrom International Airport recorded peak passenger volume which has sparked interest from investors looking into midscale accommodations nearby.
In summary, it can be seen that despite challenges faced by other industries due to supply pressures, Marcus & Millichap’s report shows that hospitality industry remains resilient and attractive for investment opportunities especially within newer properties built after year
