Dallas hotel occupancy…ADR…RePAR… all up and the best they’ve been in years!
JLL recently reported that DFW ranked 3rd nationally for hotel construction, with almost 7,500 rooms underway, just behind NY and Orlando.
February 25, 2019
- JLL recently reported that DFW ranked 3rd nationally for hotel construction, with almost 7,500 rooms underway, just behind NY and Orlando.
- This is not a surprise given how strong our business economy has been the last several years, with almost 900,000 new jobs and 26 million square feet of office space absorbed since 2010.
- This business velocity has translated into solid hotel fundamentals. Occupancy, average daily rates, and revenue per available room are all up – and at near all-time highs.
- For Dallas Market Center, defined as the better properties in the urban and close-in suburban core, occupancy has been consistently in the high 60-percent range for 4 years – a level not seen since the mid 1990s.
- ADR is also up 4.0 percent annually since the start of this cycle, with RevPAR up 6.2 percent annually due to the push from the higher occupancy. This RevPAR increase is almost a full percentage point ahead of the US average.
- Likewise, the Dallas region has been one of the most dynamic in 2 decades. Overall, occupancy is consistently edging close to 70 percent, and although ADR ($109) and RevPAR ($74) are lower due to the more middle market and budget properties included in that mix, annual growth has been similar to Market Center numbers.
Source: Smith Travel Research; JLL Research